Financing Options
Mineral Survey #1875 (1215+ acres) @
$495,000 = ($407.40 per acre)
Mineral Survey #1144 (763+ acres)
@$285,000 = ($373.38 per acre)
Discount if both purchased together ($100,000)=
$680,000 for all
Lohman Mining and Commercial Inc. will offer owner financing
to qualified buyers upon credit approval for up to 4 years. Terms will be 40% down payment
with annual balloon payments plus interest at 9%. The balloon and interest payment can be
structured to be payable in October of each year to allow for mining.
Lohman Mining and Commercial Inc. also offers a 10% cash discount
if the buyer pays for the property(s) in full at closing.
Or, there is a purchase with royalty option: Claims can
be bought for 60% of the straight purchase price if it is coupled with a production
royalty. In this scenario payment will be as follows: A 30% down payment upon
purchase of the claim(s). A 15% additional payment of sales price due and payable by May
31 of 2013 and a last additional payment of 15% due and payable by October 31, 2013. There
is no interest on these payments. Buyer also will pay sellers a production royalty for 20
years with a minimum $25,000 annual royalty payment in gold or cash or 10% of gold mined
that season whichever is greater, due and payable by October 31 of each year. Cash value
of raw royalty Coffee Creek placer gold will be calculated at 85% of New York Spot price
on September 30 of each year. Buyer may purchase sellers remaining production royalty
rights from seller after 10 years for a payment of $300,000 in cash, or gold as calculated
above.
A similar structured purchase and royalty arrangement can be
calculated for each Mineral Survey claim block group separately.
During the term of the production royalty seller will have the right
to have full access to all buyers mining operations including sluice boxes and cleanup
devices, employees, and all accounting records and paperwork. Buyers will be
required to notify sellers or their designated agent at least 10 days in advance of any
cleanup and will provide accommodations for a sellers representative if
desired.
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