Group Buy::: The RealCent Silver Mine

[misteroman]

Had to think about this for a few days before I commented. Would def. be interested but have some questions that I'm not to sure about. Send me a PM idaho

[jerry278]

Also what exactly does a $1,000 share entitle you to? I understand the buy and hold option, but what happens when you start mining. Lets say you only get 'x' amount out of the ground but there '' amount of people involved with varying level of shares. How does this work? Would the share holders get physical metal?

I have a medium level of interest btw. But defintely need more specifics before I pledge anything.

[barrytrot]

I am just curious how exactly would this work? Do people with more shares have 'more votes'

Yes. 1 share = 1 vote.

Naturally the corporation would also have bylaws. Which are essentially like a "Constitution". Other than the fact, that the corporation really has to obey it

NOTE: In a private corporation, 50.01% means absolute authority. So a group or a person that could control at least 50% of the votes would have complete control to do whatever they wanted. Within the parameters of the bylaws.

[68Camaro]

Idaho, when you're doing your planning, keep in mind that of the 700+ current members, there are only about 200 with more than a hundred posts (which now includes me after 2-3 months), so the active base isn't going to be 1000, or even 700. If more than 100 people kick in $1000 or more, I'll be a bit surprised.

[barrytrot]

Also what exactly does a $1,000 share entitle you to? I understand the buy and hold option, but what happens when you start mining. Lets say you only get 'x' amount out of the ground but there '' amount of people involved with varying level of shares. How does this work? Would the share holders get physical metal?.

No. The metal and money would go to the corporation. At some point the corporation could choose to issue a dividend.

That dividend would need to be in dollars to lighten the accounting cost in doing so. Issuing a dividend in metal is possible but I highly doubt it would be set up to do so as that would be an undue additional cost. And the money to metal conversion can be done by the share holder fairly quickly after receiving the payout.

[barrytrot]

Idaho, when you're doing your planning, keep in mind that of the 700+ current members, there are only about 200 with more than a hundred posts (which now includes me after 2-3 months), so the active base isn't going to be 1000, or even 700. If more than 100 people kick in $1000 or more, I'll be a bit surprised.

It's not necessary to get 100% of the funds from realcent. Getting a base and then asking a few other informed people would probably do the trick.

[oktyabyr]

I'd be interested, but I'd like to know more. Get some background on the property.

[IdahoCopper]

I'd be interested, but I'd like to know more. Get some background on the property.

Here you go - - -

I uploaded the mining survey here:

http://www.idahocopper.com/mine/IDmine-001.pdf
http://www.idahocopper.com/mine/IDmine-002.pdf
http://www.idahocopper.com/mine/IDmine-003.pdf

[Corsair]

.

No. Purchasing shares gives you a vote in controlling the corporation.

The Corporation controls the Land completely.

The owners of the corporation have no power over the land other than in voting on how the corporation operates.[/quote]

I am just curious how exactly would this work? Do people with more shares have 'more votes' [/quote]

I'm not a business guy, but I am a math guy. My guess would be that all of the member's would have weighted votes. Each person gets to cast one vote, but that vote has a higher or lower value depending on how much of a share you own. Then, the average could be calculated out and a true "majority" could be formed. Obviously if there are three people in a company, Persons A, B, and C, with Person A owning 75%, Person B at 20% and Person C at 5% and there is a vote, and Persons B and C vote nay but Person A votes yea, the vote passes.

[IdahoCopper]

.

No. Purchasing shares gives you a vote in controlling the corporation.

The Corporation controls the Land completely.

The owners of the corporation have no power over the land other than in voting on how the corporation operates.

I am just curious how exactly would this work? Do people with more shares have 'more votes' [/quote]

I'm not a business guy, but I am a math guy. My guess would be that all of the member's would have weighted votes. Each person gets to cast one vote, but that vote has a higher or lower value depending on how much of a share you own. Then, the average could be calculated out and a true "majority" could be formed. Obviously if there are three people in a company, Persons A, B, and C, with Person A owning 75%, Person B at 20% and Person C at 5% and there is a vote, and Persons B and C vote nay but Person A votes yea, the vote passes.[/quote]



Corporations work like this. Each share is represented with one vote. If a shareholder owns 10,000 shares, he has 10,000 votes. Usually, that individual would vote all 10,000 the same way...for or against...whatever.

[Corsair]

What is the minimum that you are considering as a "share", again?

[jerry278]

Ok thanks guys for the helpful explantion that makes things pretty clear. So i guess this is sort of impossible to determine but what sort of return could a person how bought a share for a $1,000 expect to get. To be perfectly frank a $1,000 is alot for some people. Like hypothetically speaking if 'it was the BIG ONE' then what would a guy with a $1,000 share get from it?

[IdahoCopper]

Ok thanks guys for the helpful explantion that makes things pretty clear. So i guess this is sort of impossible to determine but what sort of return could a person how bought a share for a $1,000 expect to get. To be perfectly frank a $1,000 is alot for some people. Like hypothetically speaking if 'it was the BIG ONE' then what would a guy with a $1,000 share get from it?

The share price could be anything for $10 to $1000 each. That can't be determined exactly at this early stage.

The owner is asking $1.8M to sell the mine. At $10 per share, that is 180,000 shares. At $1000 each, it is 1,800 shares. In the end, it is ALL THE SAME. If you owned one $1,000 share, the profit would be exactly the same as owning 100 - $10 shares.

Download the survey documents and study them. That is the only real description of the ore on the property.

The mine could have ore worth between $20 million and $2 billion; today, or 3 years from now. Its value depends on the current spot price for silver. Spot will be different 3 years from now. And nobody can know what that will be.

[Spikeanator6982]

I would imagine, the $1,000 share would get one shares worth. lol. No but seriously. If dividends were paid out, or the land sold, I assume each share would get a percent. if there were 500 shares one share would get 1/500 of the value of the land when sold or 1/500th of the dividents that were paid out. no way to tell what that would be because theres no way to know what the profit would be.

[Corsair]

Are you just going to assume that he won't take anything less than $1.8M? If you have some serious interest (which it looks like Realcent does), you could tell him about that and see how low he'll go. If he's getting that old, one million or one point eight million isn't going to make much of a difference.

[IdahoCopper]

Are you just going to assume that he won't take anything less than $1.8M? If you have some serious interest (which it looks like Realcent does), you could tell him about that and see how low he'll go. If he's getting that old, one million or one point eight million isn't going to make much of a difference.

I agree that we would offer less than $1.8M. That is one of the factors that make it impossible to determine a share price at this early stage.

So far, the RealCenters have offered "soft pledges" only equal to 12.65% of the asking price. We cannot make a serious offer at that level.

Over the next week, more pledges will come in, and perhaps some heavy-hitters will step up and want controlling interest in the venture.

I have some contacts with significant money who are aware of this opportunity and they may want in. I won't know their level of interest for a few more days. Other RealCenters reading this should also be spreading the word, and giving the link to this topic to their contacts with significant investment potential.

We can do this.......a group this size definitely has the potential to gather less than $2M for a good investment like this.

The main point is WE ARE BUYING SILVER. Just because it is still in the ground does not change that FACT.

[glass]

This thread has me dreaming of what if
Biz is a risk and I like the potential here
Idaho if this happens, I like working vacations
Im good at Hands on Operations, Logistics, Purchasing, Heavy Equip, Indust. Maint. and Commercial Construction

[Corsair]

I'm playing Devil's Advocate here.

"We" would be buying silver that is nowhere near pure. We would be buying, basically, speculation, no? It would be the equivalent of purchasing ETFs, right? I mean, we think we are buying silver, but actually, there may or may not be the physical silver there to back up the investment.

[Treetop]

Based on the links posted the other day... If I got this right, this mine was rather rich, and at the time it was mined there were no roads to it. they used pack animals to haul it. a fact that undoubtedly made it less profitable at a time many mines shut down. silver was super cheap at the time. if all that is true, it really could potentially be a great mine.

I assume there are roads closer by now???

[Spikeanator6982]

It also seemed (from the reading) that the zinc content presented a problem back then, but it shouldn't now.

[barrytrot]

I'm playing Devil's Advocate here.

"We" would be buying silver that is nowhere near pure. We would be buying, basically, speculation, no? It would be the equivalent of purchasing ETFs, right? I mean, we think we are buying silver, but actually, there may or may not be the physical silver there to back up the investment.

Way different than buying ETFs. ETFs may not be real silver but you could sell them any time you want. This mine is the ultimate "buy and hold". Anyone doing this needs to expect several years before any return of any type.

[Kurr]

Im interested as well. I can't feel comfortable "Pledging" at the moment,as I do not have pocket fulls of money but if I did, I'd set aside a couple K for this.

Definatly interested.

[IdahoCopper]

I'm playing Devil's Advocate here.

"We" would be buying silver that is nowhere near pure. We would be buying, basically, speculation, no? It would be the equivalent of purchasing ETFs, right? I mean, we think we are buying silver, but actually, there may or may not be the physical silver there to back up the investment.

Not true. We are not buying a pig in a poke. The 1985 professional survey proves the extent and quality of the ore body. A current survey would show exactly the same. Study the three .pdf files to confirm. The professional survey was an "induced polarization survey". Google to learn more about that.

1 short ton = 29,166.6667 troy ounces

With the ore at 100 ounces per ton, we are buying silver that is .003428 fine, instead of our usual .999 fine.

[IdahoCopper]

I assume there are roads closer by now???

Yes, there are a lot of dirt roads in the area now. Take a look at the satellite image I posted.

[toomuchcopper]

I have read over most all the documentation.

My main concerns (without getting into if there is silver worth mining or not) is the access.
1. the property appears to be very steep and in a ravine of sorts...
2. Is there an actual right of way on these roads that would give you the right to widen them for truck access, what would that cost and is it feasible? Seems like you could spend a couple hundred grand just making roads to access the sight, if the severity of the terrain would even allow a road to be made.
3. What is the permitting process for such a venture....EPA considerations, State govt, fed govt, town bylaws, etc.etc. and what is the cost of permitting a venture like this....I know in VT, you could never do it, Just to open a gravel pit, it costs over $100k just to do the studies neccesary to get the permits.
4. comparable sales, someone else mentioned this but there must be some comparable sales, the RE agent should be able to provide any and all comparables. I am sure that his commission on this deal is 6-10% so he should be able to spend a few hours getting some info for you.


just some thoughts for you....