Business Plan Addendum
Modified Business Plan
$5 million - Small Extraction Process Plant
Additional Proposed Small Plants (3)
$5 million each plant for $15 million
Total Capital Investment = $20 million in stages
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Fallon Mining Company, Inc Kingfisher Sand & Gravel, Inc
SUMMARY: Business Plan
In the beginning, 1989, the company, Fallon Mining Company, Inc (FMC), obtained Bureau of Land Management Mineral (BLM) Claims to explore to determine if a commercial amount of precious metals existed in the claims, and how it could be extracted. These particular claims had several past exploration work by different people partially completed on them. In early 1994, it was determined through various assay tests that the ore body desired more exploration and research. Hence, we contracted to instigate a Coring and Geological Report and the area of interest, and began, though the formation of Kingfisher Sand & Gravel, Inc (KFSG), to purchase the fee simple properties checker boarded between the FMC BLM claims held.
Once the Coring and Geological Report was completed in March 1995, a Business Plan budgeted at $356 million, to include several infrastructure facilities to support the main process plant was devised. We elected to stay a private company, so funding this project size became impossible with the pervasive bad World economics. We also realized we needed a Bank Feasibility Study to be able to fund this amount. The Bank Feasibility Study would be the last step, as it is in every mining company's growth, to obtain major funding.
In 2007, the management decided to instigate a program whereby we formed several Nevada LLCs designed for each to lease an existing building, or build a new building, to permit the buildings as small extraction plants. The LLC format was designed to kept each proposed plant site under the 5-acre exemption from Bonding and Environmental Impact Studies, which is a major cost.
The reasoning behind placing a small extraction plant into operation was (1) it would provide a Bank Feasibility Study, and (2) provide daily operating capital to the company to continue growth.
In 2008, the company had two entities that contracted to purchase an interest in two LLCs. We began the permitting process on a leased building. In late 2008 and mid-2009, both entities experienced financial reversals and defaulted on their contracts. The company continued the permitting process on the leased building and the building is permitted for processing at this time. The company still is required to do some containment improvements on the building as part of the permit issuance terms, as well as needs to bring in electrical power. The plant operates on generator power now, and the electrical grid needs to be connected due to new limitations on carbon dioxide (cap and trade) emissions.
The company is seeking $5.0 million to complete the initial SGT extraction plant and place it into production, and obtain the Bank Feasibility Report, as well as to purchase the existing building, 240-acres it sits on for expansion capability in the same vicinity, and 680-acres in the main ore body.
The company is also seeking capital to fund an additional 3-new plants built around the first SGT plant building to expand production. Each one of the new LLC plants is projected to cost approximately $5 million for a total additional plant investment of $15 million.
The company's shareholders have been with this project for 20-years. Some of them have died, and the others are getting very old and are retired. The shareholders voted to sell the company at a fair price in order for them to see some return on their dream before they past on.
Therefore, management is interested in purchase discussions concerning the company and its assets.
The company has a web site, which we have not updated lately, due to others utilizing the corporate information involving proprietary data, that provides some Historical Data involving the company. The company also has a Coring and Geological Report, as well as many custodial, and non-custodial, assay reports.
Further specific information can be provided to a qualified investor.
END OF SHORT GENERAL SUMMARY REQUESTED
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