Group Buy::: The RealCent Silver Mine

[OtusLotus]

I say that the first thing we do is dig up the gravel from the guy's driveway... if it is even close to the amount of silver that he says is in it.. then I think it is a go...

Oh, and btw.. I know a lot about mining and what it takes... I watch Gold Rush Alaska!

[IdahoCopper]

When we say "shares", I'm assuming we're talking about the conventional terminology. The IPO would have to be done through an investment bank, right? I wonder how much it costs to do that. And, would shares be open to the general public to purchase, or RC members only?

I do not know everything about forming a corporation. I do know that an IPO is not needed nor an investment bank.

I have been involved with startup corporations in the past. One was formed out of an on-line discussion group. I think we started with 17 shareholders.

I'm sure there are others here who know more.

[Diggin4copper]

Who wants a tshirt? Maybe we get some printed up with "RealCent Mining Co" and a pick and shovel on them...anybody on here have a printing biz?

[DeanStockwell]

My girlfriend's father is a corporate lawyer, I can talk to him soon about this. I'd exercise BIG caution, this is risky stuff. You would need an up to date survey of the mine. If realcent was going to do this, I think the best option would be to form a trust and buy into an existing mining company. IF a trust was able to formed, I would be able to place a sizeable amount of FRN's on the table to buy shares. I'll PM you Idaho Copper.

[Morsecode]

Who wants a tshirt? Maybe we get some printed up with "RealCent Mining Co" and a pick and shovel on them...anybody on here have a printing biz?

I got that covered. Shirts, jackets, hats, even backpacks

[bootstrap]

You do not need to setup an IPO and go public to have shares of a company.

Shares can be sold privately for LLcs. Basically, privately held shares mean they cannot be exchanged on one of the US's public stock exchange. NYSE for example.

I am interested in this oppurutnity, but like highroller I am concered the assay is out of date.

[barrytrot]

Ok. I've gone over everything posted and the PMs I got. This is my assessment after 20 hours.

If an association was formed to do this project, it only makes sense to do it as a "Buy and Hold" investment. The risks are too great to buy it for an immediate mining operation.

That being said, the buy and hold option can end anytime the shareholders decide to begin mining, instead of selling the mine to others at a profit.

So if silver gets up to $250 per ounce, and we still own the mine, why not begin digging, instead of selling it? Essentially it would be the decision of the shareholders on selling or digging.

But the original plan should only be Buy and Hold....then see what happens.

That's my 2 copper cents.

You can't just suddenly switch from "buy and hold" to "work the mine" unless you intend to do another "capital call". "Work the mine" route entails another $500,000 (more?) in expenses. So if you go "buy and hold" you are stuck unless you bring in more money into the "association".

[barrytrot]

You do not need to setup an IPO and go public to have shares of a company.

Shares can be sold privately for LLcs. Basically, privately held shares mean they cannot be exchanged on one of the US's public stock exchange. NYSE for example.

I am interested in this oppurutnity, but like highroller I am concered the assay is out of date.

Unfortunately the shares are pretty difficult to sell. So those undertaking this need to be in it until the whole thing is profitable.

The founders of this venture will all buy in. From that point on selling shares will be limited as follows:

You may sell shares to a maximum of 35 non-accredited investors and an unlimited number of accredited investors. If you do not have audited financials, then you can only sell to accredited investors. Most likely the venture will not have audited financials, but it is possible.

Accredited investors are individuals or joint net worth with that persons spouse at the time of purchase that exceeds $1,000,000 or has individual income in excess of $200,000 in each of the two most recent years or joint income with that persons spouse in excess of $300,000.

Selling internally is always ok as well. I.e. one of the founders may buy all or part of another founder's shares.

And the corporation itself can buy out people.

Both of the last 2 depend entirely on the other founders and/or the corporation having money to do so. Generally an internal buyout prior to the venture making a profit will be at a substantial loss for the person selling. So if you get in, plan to ride it to the very end!


Regarding going public (an IPO) that is extremely costly, and requires a corporate structure with audited financials for 3 years. So no dice there

There is always the "reverse merger" option which is always modestly costly (total fees around $125,000 or so). The issue there is that you have to then do full Public reporting which is a massive pain and costly. I've heard several estimates that the minimum cost is $50,000 per year even for a small venture such as this.

[IdahoCopper]

Ok. I've gone over everything posted and the PMs I got. This is my assessment after 20 hours.

If an association was formed to do this project, it only makes sense to do it as a "Buy and Hold" investment. The risks are too great to buy it for an immediate mining operation.

That being said, the buy and hold option can end anytime the shareholders decide to begin mining, instead of selling the mine to others at a profit.

So if silver gets up to $250 per ounce, and we still own the mine, why not begin digging, instead of selling it? Essentially it would be the decision of the shareholders on selling or digging.

But the original plan should only be Buy and Hold....then see what happens.

That's my 2 copper cents.

You can't just suddenly switch from "buy and hold" to "work the mine" unless you intend to do another "capital call". "Work the mine" route entails another $500,000 (more?) in expenses. So if you go "buy and hold" you are stuck unless you bring in more money into the "association".

barrytrot - - well, actually you can. The corporation can have a Charter that directs the Officers to do certain things. For example, if Ag goes to $250, and the ore is 100 OPT, that means the ore is worth $25,000 per ton, in its raw state. If the property has 100,000 tons of ore, that's around $2.5 Billion.

I'm pretty sure at that level of value, the corporation can borrow the money to develop the mining operation by using the proven reserves as collateral.

So no, a capital call would not be required.

[barrytrot]

Ok. I've gone over everything posted and the PMs I got. This is my assessment after 20 hours.

If an association was formed to do this project, it only makes sense to do it as a "Buy and Hold" investment. The risks are too great to buy it for an immediate mining operation.

That being said, the buy and hold option can end anytime the shareholders decide to begin mining, instead of selling the mine to others at a profit.

So if silver gets up to $250 per ounce, and we still own the mine, why not begin digging, instead of selling it? Essentially it would be the decision of the shareholders on selling or digging.

But the original plan should only be Buy and Hold....then see what happens.

That's my 2 copper cents.

You can't just suddenly switch from "buy and hold" to "work the mine" unless you intend to do another "capital call". "Work the mine" route entails another $500,000 (more?) in expenses. So if you go "buy and hold" you are stuck unless you bring in more money into the "association".

barrytrot - - well, actually you can. The corporation can have a Charter that directs the Officers to do certain things. For example, if Ag goes to $250, and the ore is 100 OPT, that means the ore is worth $25,000 per ton, in its raw state. If the property has 100,000 tons of ore, that's around $2.5 Billion.

I'm pretty sure at that level of value, the corporation can borrow the money to develop the mining operation by using the proven reserves as collateral.

So no, a capital call would not be required.

If it goes to $250, I suppose it is pretty likely that a loan could be had. And most of the investors who are super long in silver would be rich also, so a capital call would also work

If it only goes to $50 or $60 though, which are much more likely, the odds of getting a loan are by no means 100%. As soon as this thing is owned by a non-human, that means that it's credit starts out at zero. So getting that initial loan will be very difficult. I'll grant that it is probably doable at the $250/ounce level, but below $100/ounce I don't see the corporation getting that much financial love

[IdahoCopper]

Another option is to Buy, Hold, and then after a few years, Lease the property to some established mining company.

[barrytrot]

Another option is to Buy, Hold, and then after a few years, Lease the property to some established mining company.

True. That's always an option as silver increases in value.

Naturally they are taking a BIG chunk of the profits. My grandmother has oil land and if I remember correctly she only gets 20% as her part of the split.

[argent_pur]

Who wants a tshirt? Maybe we get some printed up with "RealCent Mining Co" and a pick and shovel on them...anybody on here have a printing biz?

My family business is a screen printing/embroidery shop

[HPMBTT]

Hard Assets Holding Corporation

I prefer Hoard Precious Metals (HPM) Corporation.

[Rosco]

You do not need to setup an IPO and go public to have shares of a company.

Shares can be sold privately for LLcs. Basically, privately held shares mean they cannot be exchanged on one of the US's public stock exchange. NYSE for example.

I am interested in this oppurutnity, but like highroller I am concered the assay is out of date.

If 300 people bought in for $3,000 that is only $900,000, That is half the asking price. We need a guess-t-mate of true interest an I prefer that the Data be collected by One Person , Individuals not be reviled unless to other Share holders if we go further.

[Thogey]

Here is a sat image with the patented claims in the area. The "x" is Herb's claims area.

Why is there no mining operations happening in the adjacent sections? edit: or are there?

Are all the other claims in a buy and hold mode?

Are any of the other claims in the grid for sale?

[HPMBTT]

Due Diligence is always important. I think I have posted enough info for a very good start on that.

We need a roster of everyone who is seriously interested, and another roster of everyone who is potentially interested. A realistic survey is needed of the total amount of money/bullion that can be "pledged" by those interested. This allows us to realistically determine if we have enough to make a serious offer. The individual pledges can be confidential to the majority of the group, if folks are more comfortable with that...sort of like a secret ballot.

We need to delegate one to three point persons who can research and report.

A plan that addresses the options of buy and hold, or work the mine, or some combination of those; needs to be fleshed out.

If we proceed, a corporation will be required.

.................That's a start.

Hey there. Was waiting for a response from Idahocopper to everyone else's comments etc. Yes, I'm genuinely interested if things come together and it's legit. So far, it looks possible, based on your statements and the listing/links. To be honest, I've actually considered Idaho in the past not just as a good place to call home, but also for this purpose (mining). Idaho has a lot going for it; it has a nice mining history and there are still some decent freedoms left in the state, unlike many other states. Also, there is plenty to do outdoors and still plenty of resources (check out Idaho in Rawles' retreat area section of his blog). Although it's a shame that the goobermint owns two-thirds of the land in the state.

[IdahoCopper]

Why is there no mining operations happening in the adjacent sections? edit: or are there?

Are all the other claims in a buy and hold mode?

Are any of the other claims in the grid for sale?

Thogey - - The widespread silver mining in Idaho pretty much came to a halt around the time of WW2, the mid-40s. A lot of miners went to war and did not come back. The price of silver has been too low for profitable mine operations until just recently.

I cannot speak for other mine owners or their strategies.

Other mine opportunities (Idaho or not) are probably available. A diligent Google search would find them.

[IdahoCopper]

I've collated the info from all the posts and private messages onto a spreadsheet. Here are the results so far:

There are 21 interested persons. 11 with High interest; 9 with Medium interest; 1 with Some interest.

Nine persons have given some indication of the amount they have to invest, with many qualifiers. All these can be considered "soft pledges". When a person named a share price and said they were in for a "few", or for "some", I multiplied the figure by three. So far we have "soft pledges" totaling $214,700.

Eleven persons indicated interest without indicating any amount. If those persons would PM me and give a soft pledge, I'll update the spreadsheet and share the results. If my 3x multiple was wrong for those who gave it that way, please PM me with a correction.

If undeclared persons now have a higher interest level and can declare a soft pledge, please post, or PM me.

I am keeping the pledge amounts for each person confidential, until the corporation (or whatever) is formalized.

[Deathwish_DW]

I'll "pledge" $2,000 + possibly working on the land/mine,etc.

[Spikeanator6982]

I would be interested, lots to figure out and know, but I should be able to give a...soft pledge of $1,000, maybe more depending on comfort level and standing when the time comes.

[argent_pur]

I'll "pledge" $2,000 + possibly working on the land/mine,etc.

This brings up a question to my mind...does purchasing shares confer on the buyer any right to mine the land since we (partially) own it? Not that I would or could anyway--I live in Illinois

I'll PM with a pledge amount.

[barrytrot]

I'll "pledge" $2,000 + possibly working on the land/mine,etc.

This brings up a question to my mind...does purchasing shares confer on the buyer any right to mine the land since we (partially) own it? Not that I would or could anyway--I live in Illinois

I'll PM with a pledge amount.

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.

[Dumpster Diver]

7.) I looked into dynamite certification. There is a 2-day class in Oregon, cost is $1250 per student. Lab materials are provided.

I think we should all spend our money on this.

IC-Put me down in the Medium Interest column.

[jerry278]

.[/quote]

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'