RXM 2.63% 39.0¢ rex minerals limited

Funds for Development of Hillside

  1. 632 Posts.
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    Capital Fund Company - ABC Ltd (example company only)
    There should be a company in Australia set up to provide development funds for numerous undeveloped projects. In this instance I am thinking of the funds required to kick start the Hillside Copper Mine at Ardrossan in South Australia. As our relationship has soured with China our biggest trading partner I doubt if the Government would like them to get involved with our future projects . So maybe we should be looking at the future funds coming from an Australian based company that have a big Australian based investment community looking for a guaranteed bricks and mortar investment with better than bank returns on their investments.
    Example:
    ABC Fund manager approaches Rex and offers to fund the Hillside Copper Mine . Parties agree to terms and conditions and now ABC contact there client base to offer an investment opportunity .A prospectus is issued to the clients of ABC to this development in units of $5000.00 capped at 100,000 shares. Each $5,000.00 unit would return the customer 9.38% per annum by way of a 5 year contract of $5,000.00 @ 8%compound interest. Calculation $5000.00 @ 8% for 5 years .
    Year 1 Compound $5400.00
    Year 2 Compound $5832.00
    Year 3 Compound $6298.00
    Year 4 Compound $6802.00
    Year 5 Compound $7345.00
    Capital repayment $7345.00 equates to a return of 9.38% pa on their $5000.00 unit. Considering the banks rate of return is currently at 1% or lower any one would consider their funds would be best invested with ABC . All investments are fraught with risk but all things being equal the future of the project would have been de risked as much as possible. So Rex get there $500,000,000 to develop the mine , ABC get a lovely deal with Rex repayable over 5 years , ABC's customers get a healthy return on their investment over 5 years , Rex shareholders are rewarded with Capital Gains and receive dividends on their shares in due course.Very simplistic approach but it is something that could work and work handsomely for a lot of small investors . All we need to do is find a real ABC Funds Manager in Australia.
 
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