Expansion of production of commercial blocks of labradorite

Project summary

Investor offer

industrial mining project

natural stone labradorite in the Zhytomyr region (Ukraine)

Industry: Mining

Activity: Extraction of other minerals

Project stage: Growth and expansion stage

Required investments: 3500 thousand UAH

Investment type: Equity participation

Location:

The Optima labradorite and gabbro-anorthosite deposit is located 40 km from the E40 international road, 50 km from the E373 highway, 5 km from the Zhitomir - Korosten highway, 4 km from the railway. Fasovaya station and 45 km from the city of Zhitomir.

Main activities:

- industrial extraction of natural stone labradorite

- sale of mined stone blocks

- sale of products of processing natural stone labradorite.

Product Description:

Today there are more than 8000 varieties of natural stone in the world. The most used of them are marble, granite (including labradorite), slate, limestone, sandstone.

Labradorites belong to the class of the most decorative and expensive natural stones. Architects, builders and designers use it to decorate both the exterior and interior of buildings: wall and floor cladding, fireplaces, columns, making vases, sculptures, kitchen countertops, as well as paving stones, road slabs and curbs.

Current state of production and tasks:

Active mining operations were resumed in the fall of 2017.

In fact, the first rock ledge was selected. In the quarries of block stone, it has fracturing and decorativeness, inferior to the underlying second ledge. At the same time, when passing the first ledge, the task of promoting the Optima labradorite to the market and the formation of its recognition was solved.

In 2018-2019, an investment was received from a private person in the amount of UAH 3.5 million. and work was carried out on the construction of the second bench, during which a technological reduction in production usually occurs and, accordingly, a drop in sales along with the leaching of working capital. A production bench with a height of 6 m was prepared for operation and built.

Currently, the production capacity allows for the production of 15-20 cubic meters per month. To switch to commercially attractive volumes, it is necessary to reach a production capacity of 80-100 cubic meters.

Investor offer:

According to the calculations, it is necessary to attract financing for 2 years in the amount of 3.5 million hryvnia, including:

• for the repair and purchase of equipment in the 1st month of the project UAH 2.1 million,
• for replenishment of working capital in the 1st – 4th months of the project - UAH 1.4 million.

After the first year of cooperation, the participants will discuss further prospects for joint activities for a longer period.

We are ready to offer the investor the following conditions:

1. Refund from 5th to 18th months after the start of the project at the expense of 60% of the project's profit

2. Participation in the distribution of profits with a share of 30%, which will allow receiving dividends