Wase Hill Project

Wase Hill Ltd. plans to raise up to US$ 3,300,000 to evaluate the mineral potential of the mining property and to establish an office in the capital, Abuja where the Ministry of Mines and Steel Development (MMSD) is located and in Mavo where at the site location.The company will hire RSC Mining & Mineral Exploration (Australia) or a similar company to carry out an extensive evaluation of the site, provide advice on mining operations and produce an internationally accepted (JORC or N1 43-101).

RSC have submitted a proposal outlined below with a cost estimate of just over US$2,928,000. The forecast allows for 20%  contingency fund. Staff costs, legal and professional services, license fees and other office costs in the pre-operation phase are forecast to be approximately US$ 385,000. Any surplus will form part of a contingency fund and for any additional legal services required to set up a subsidiary mining vehicle.Mavo village  has a number of  artisanal  deposits with  local miners working on  extracting Direct Shipping Ore (DSO). It is the intention of the Promoters to  expand the lease area by acquiring  suitable artisanal deposits through a process of  negotiation and  co-operation . The Promoters will also seek to aggregate all production from the area  for a purchase and sales  operation to augment production.

VALUATION

The Wase Hill valuation is based on a combination of different approaches and a 60:40 split of net profit in favour of the mining partner. This reflects the management view of a high probability that the "Site" will yield an economically viable mineral deposit.

The valuation methodology is a preferred method but can be varied by mutual consent between the Promoters and investors

Our first and most appropriate approach treats Wase Hill as an "exploration property". The value of the property lies in its potential for the existence and discovery of economically viable mineral deposit. The best valuation methodology would ideally be  to use comparable transactions.

HOWEVER THERE IS A DEARTH OF TRANSACTIONS THAT ARE SUFFICIENTLY SIMILAR IN TERMS OF THEIR GEOLOGICAL, GEOGRAPHICAL AND FINANCIAL PROFILES AS TO RENDER SUCH METHODOLOGY INACCESSIBLE

Our second approach is to value the site as a "pre-feasibility development property” is much more apt. This requires using discounted cash flows method which requires the assumption of a high probability that an economically viable deposit exists. This approach is based on and makes the following assumptions:

1.   A discount rate of 15%.

2.   The mineable reserves lend to a workable mining plan, with a production rate

of  300 tons of 50% grade lead ore per day for at least 270 days per annum at normal capacity (2019).

3.   The initial capital cost of operating a surface mine to reach that capacity will be $10m

4.   Our lead price projection is based on 50% of market price as at 10/07/2019.

5.   The profits of the Joint Venture are split 60:40 in favour of the mining partner and

Wase  Hill Ltd.

 

Our discounted cash flow is based on five years of forecasts and a conservative growth

rate of zero thereafter.

The model for Wase Hill Ltd values the company at $59.8m. The model assumes that all taxes, environmental provisions, royalties and mining costs are borne by the joint venture. All exploration costs, management costs and survey costs are borne by Wase Hill.

STRATEGY

Wase Hill Ltd. plans to raise up to US$ 3,300,000 to evaluate the mineral potential of the mining property and to establish an office in the capital, Abuja where the Ministry of Mines and Steel Development (MMSD) is located and in Mavo where at the site location.

The company will hire RSC Mining & Mineral Exploration (Australia) or a similar company to carry out an extensive evaluation of the site, provide advice on mining operations and produce an internationally accepted (JORC or N1 43-101).

RSC have submitted a proposal outlined below with a cost estimate of just over US$

2,928,000. The forecast allows for 20%  contingency fund. Staff costs, legal and professional services, license fees and other office costs in the pre-operation phase are forecast to be approximately US$ 385,000.

Any surplus will form part of a contingency fund and for any additional legal services required to set up a subsidiary mining vehicle.

Mavo village  has a number of  artisanal  deposits with  local miners working on  extracting Direct Shipping Ore (DSO). It is the intention of the Promoters to  expand the lease area by acquiring  suitable artisanal deposits through a process of  negotiation and  co-operation . The Promoters will also seek to aggregate all production from the area  for a purchase and sales  operation to augment production.

THE OFFER BACKGROUND

Haskalah Investment Ltd has been awarded an Exploration License EL27763 by the Mining and Cadastral Office of the Federal Ministry of Mines and Steel Development in Nigeria for the exploration of lead and zinc. The licence covers an area of 6 Km2 near Mavo Village, Wase (hereinafter referred to as Wase Hill) Plateau State.

THE GEO-TECHNICAL REPORT BY CHALLION INTEGRATED SERVICES LTD IN 2018 HAS INDICATED THE PRESENCE OF HIGH GRADE LEAD RESERVES OF ABOUT 4,548,651 METRIC TONS AT THE DEPOSIT WHILST DELINEATING SEVEN DRILLING PROSPECTS .

The Challion geological report observed evidence of lead deposits from artisanal miners operating on the site. Further evidence of lead ore deposits in the area comes from the active mining operation of various other Chinese producers on adjoining properties.
Ore grade samples from the site that were randomly selected and assayed contained between 54.35 and 65.42% Lead (Pb). Such high grades are designated Direct Shipping Ore (DSO) and can be exported as concentrates as is currently being done by Symbol Mining (ASX: SL1) –in their lead mining projects in the adjoining Bauchi State.

Based on the above indications the promoters of Wase Hill project believe there is a very high likelihood that a commercially viable quantity of lead ore exists at "the site".