Sterling Group Ventures Inc. (fka SGGV)

[TORPEDO]

SGGV summary (3-10-11)

Sterling Group Ventures, Inc. (USOTC: SGGV, FRANKFURT: GD7)
350 S. E. Marine Dr., Suite 4743
Vancouver, B.C., V5X 2S5 CANADA
State of Inc: NV
Phone: [phone]
Fax: [phone]
URL: www.sterlinggroupventures.com
Email: [e-mail]


PRINCIPALS

CEO - Raoul N. TSAKOK
Family-run private investment grp. - http://farmindcapital.com/raoul.html
DD on Tsakok investment firm: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60160522


PRES. – Xuxin (Richard) SHAO
47, Ph.D., Metallurgy

DIRECTOR – Gerald William RUNOLFSON
68, P.Eng.
Also, Pres. Elkon Products, Inc., Pres. Drunker, Inc. (DKIN), Dir. Horseshoe Moning (TSX: HSX)

DIRECTOR – Robert G. SMILEY
65, Consultant, former lawyer,
Also Pres. Richco Investors, Inc., Drucker, Inc. (DKIN), Dir. Canadian Imperial Venture Corp. (CQV), Teuton Resources Corp (TUO), Silver Grail Resources (SVG)




TWO PROPERTIES

Gaoping Deposit, Chenxi County, Hunan Province of China - $9.3 bil. gross
Est. 58.16 mil tons Phosphate Rock @ $160/ton = $9.3 billion Gross Value
100,000 tons/yr mined @ $160/ton - $34/ton prod. cost to mine = $12.6 mil/yr revenue bef. other exp.
400,000 tons/yr mined @ $160/ton - $34/ton prod. cost to mine = $50.4 mil/yr revenue bef. other exp.

LOI – Shujiatai Deposit, Shimen County, Hunan Province of China - $5.76 bil. gross
Est. 36 mil tons Phosphate Rock @ $160/ton = $5.76 billion Gross Value
Presently conducting DD; then JV.

Combined -- $15.06 bil. gross



MARKET CAP - $8.76 mil. (3-10-11)



SHARE STRUCTURE
A/S – 500,000,000
O/S – 43,826,175, 1-10-11
Warrants – 10,508,990, 11-30-10
Options (O/S) – 0, 11-30-10
Fully Diluted – 54,335,165, 11-30-10
Float – 24,026,175



AWAITING
1. PR – confirmation of all private placement (PP) funds received.
2. PR – selection of mining mangers/personnel/equipment – layout of what’s ahead
3. PR – realistic timeframe for early production
4. PR – delivery of investment certificate



HISTORICAL


3-9-11 – 8K
LOI signed 11-10-10 filed in 8K. Sterling will conduct DD on Shujiatai phosphate property in Shimen Co. w/in 1 ½ yrs and update, if req’d., any Chinese study rprts for bldg mining, processing, + chem. plant. After DD complete, Sterling shall set up a JV in Shimen Co. for developing property. See 11-10-10.
http://www.sec.gov/Archives/edgar/data/1175416/000117541611000009/0001175416-11-000009-index.htm


3-9-11 – 8K
10-18-10 – Entry into MDA | Sterling signed 2 Agmts w/ Chenxi Co. Hongyu Mining Co., Ltd (“Honghyu”) + its S/Hs (“Hongyu S/Hs) re Gaoping Phosphate Mine in Tanjiaxiang, Chexing Co., Hunan Province, China. and other phosphate resources.
http://www.sec.gov/Archives/edgar/data/1175416/000117541611000008/0001175416-11-000008-index.htm


3-9-11 – Board Meeting


2-15-11 – Pacer Search
No lawsuits found against any of the principals (corps., and Tsakok, Shao, Runolfson, and Smiley) listed in the 10-18-10 Agreement.


2-14-11 – 8K
1. Approved extension of 3,817,500 Series A Sh Purch Warrants for earlier of 1 yr from current date of expiry or to close of bus on 30th day after takeover bid for Company’s issued and O/S sh capital has been made by 3rd pty and approved by share holders.
2. BoD approved acceleration of warrants expiry date any time prior to extended expiry date of Warrants to close of bus on 30th day after day on which closing price of shs exceeds $.80 for 20 consecutive trading days.
3. Upon exercise of Series A Sh Purch Warrants at $.50 ea, holder will receive 1 Common Sh of company and a Series B Sh Purchase Warrant exercisable at $1.00 for another yr. The Series A Sh Purch Warrants were originally issued pursuant to a PP commencing in Feb. 2004.
http://biz.yahoo.com/e/110215/sggv.ob8-k.html


2-12-11 – NEWS – Micro Cap Acquires Phosphate Company in China
http://www.mineralstox.com/info/street.asp?newsid=2265


2-10-11 – NEWS – SGGV CEO Sanctioned in B.C. (in 2006), + CEO Reply
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59797515
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59797705


1-24-11 – NEWS – Sterling Arranges Funds to Develop China Phosphate Deposit
http://www.marketwire.com/press-release/Sterling-Arranges-Funds-to-Develop-China-Phosphate-Deposit-OTC-Bulletin-Board-SGGV-1384345.htm


1-11-11 – 10Q (ending Nov. 30, 2010)
http://www.otcmarkets.com/stock/SGGV/financials


1-4-11 – NEWS – US Fertiliser Prices Track Higher
http://www.farms.com/FarmsPages/Commentary/DetailedCommentary/tabid/192/Default.aspx?NewsID=37366


1-1-11 – MKT FORECAST – 2011 Sulfer Market Forecast
http://resources.alibaba.com/topic/800080870/Sulfur_Market_Forecast_2011.htm


12-26-10 – CORP. RPT. – Sterling Group Ventures, Inc. Corporate Report
http://www.sterlinggroupventures.com/Sterling_Phosphate_Report3.pdf


12-4-10 – NEWS – Roadmap – Silvercorp Well Dug In
http://www.nationalpost.com/todays-paper/Silvercorp+well/3927558/story.html


12-1-10 – NEWS – China Hikes Fertilizer Tariff to Stem Exports
http://www.chinadaily.com.cn/business/2010-12/01/content_11634781.htm


11-16-10 – 8K – Sterling Signs LOI to Develop Phosphate Deposit in China
http://www.otcmarkets.com/stock/SGGV/financials


POWERPOINT PRESENTATION – Sterling Group Ventures – Phosphate
http://www.sterlinggroupventures.com/Sterling_Phosphate_Presentation3.pdf


11-10-10 – LOI – Sterling signed LOI with Shimen Merchants Bureau
Terms: 1) Sterling to conduct DD on property w/in 1 ½ yrs and update Chinese study reports, if necessary. 2) Sterling will set up JV to develop deposit + build a mining, processing, + chemical plant.
Location: Shimen County, Hunan Province of China.
Est. value = $5.04 bil.


10-21-10 – 8K – Announce 10-18-10 Agreement
http://www.otcmarkets.com/stock/SGGV/financials
http://www.marketwire.com/press-release/Sterling-Acquires-Phosphate-Company-in-China-OTC-Bulletin-Board-SGGV-1339000.htm


10-18-10 – HONGYU AGREEMENT – GAOPING FIELD

Structure:
Sterling Group Ventures, Inc.
-> Sterling Makaelo Holdings, Inc. (100 held by Sterling)
--> Silver Castle Investments Limited (set up in HK, 80% held by Makaelo, 20% Chinese)
---> HK Invested Hongyu [Chenxi County Hongyu Mining Co., Ltd. (90% held by Silver Castle).
Terms:
1) Silver Castle will inject capital, subject to gov’t approval, to develop + put into production the Gaoping Phosphate mine, which has 58.16 mil tons of phosphate rock resource grading 19.8% P2O5 (est. value = $8.14 bil). Production costs est. $34/ton.
2) Hongyu agrees to surrender its future exclusive cooperative rights to Sterling. Honghyu S/Hs acknowledge and agree that Sterling shall set up an investment company in Hong Kong, which will initially be owned 80% Sterling, 20% Hongyu S/Hs. If Sterling does not complete taking over Hongyu thru the investment company w/in 3 months after signing the agmts, Sterling shall pay RMB 200,000 Yuan to Hongyu S/H as down pymt.
3) The Hongyu S/H shall keep the GP Property in good standing at all times during term of Agmt and shall keep Permit valid and effective, free from encumbrance or liability. Hongyu agrees to assist w/ above matters. The investment co. shall acquire 90% interest in Hongyu. The remaining 10% interest in Hongyu s/b transferred to nominees of Sterling. After this transaction, Hongyu s/ become a Hong Kong/China JV company (“HK Invested Hongyu”). Within 5 business days after approval of HK invested Hongyu by the appropriate Chinese authorities, Sterling s/ pay RMB 2 mil Yuan to the Hongyu S/Hs.
4) Sterling will ensure that the net assets value of Hongyu w/b RMB 5 mil Yuan during the acquisition.
5) The Hongyu S/Hs also agree to sell their 20% interest in the Investment Co to Sterling when requested to do so, in exchange for 10 mil common shs of Sterling’s capital stock t/b issued as consideration for such sale and shall at all times be subject to the rules + rqmts of US regulatory bodies bearing j/d.
6) The Hongyu S/Hs and Sterling agree that Sterling s/h all Hongyu’s title and interest in any phosphate properties, including, but not limited to the GP Property, and Sterling shall arrange for the financing of building a mining and processing plant on the GP property.
7) The Parties agree that the registered capital of HK Invested Hongyu s/b increased to the req’d level in order to build a mining processing plant and other facilities. Sterling s/ cause al the registered capital of HK Invested Hongyu t/b timely advanced to the accounts of Hongyu according to Chinese regulations.
8) Until such time as the acquisition is complete under the terms of the Agmt, Sterling w/b responsible for day-to-day maint ovhd costs of Hongyu, but will not be req’d to pay for any costs related to the building of a potential processing plant or other facilities. After the Agmts are signed, Hongyu s/ hand over all its documents and seals to Sterling. Sterling s/b in charge of maint of Hongyu during the period of the Agmts.

Project Plan:
http://docs.google.com/viewer?a=v&q=cache:kFLi79fXmhEJ:www.hhhbj.gov.cn/mypiczw/2007516195456787.pdf+%E8%BE%B0%E6%BA%AA%E5%8E%BF%E5%AE%8F%E5%AE%87%E7%9F%BF%E4%B8%9A&hl=en&gl=us&pid=bl&srcid=ADGEESjG6JtsNfcQkp8RLaKky4c7YVSaCu8t5xRs1oDzMsgasmu95z4cILGLZqQmF2eKJlJI1K1aG1uWC2RRgrPczPm3YYDuIIE_5W4LMJMG_BCIJW0oyFwT9E-vgRMxPSX3Mmbcjpr-&sig=AHIEtbQ42T01i8CagXNx5LX6xe8j3XhdSQ&pli=1
Project Name: Hunan Province, phosphate Tanjiaqiao field Gaoping phosphate
Location: Chenxi County Twp. High Tanjiaqiao Field Village
Constr. Content + Scale: annual output = 100K tons phosphate rock
Total Investment: 300 (million Yuan)
Owner: Chenxi County Hongyu Mining Co., Ltd.
Contact: Wu Haifeng
Phone: [phone]
Evaluation by: Environmental Protection Science Research Institute Huaihua
Contact: Engineer Xiang
Phone: [phone]

Facts about Chenxi County:
1. A railroad
2. 3 highways
3. River transportation (near branch of Yangtz river).
4. Also has reserves of coal, Cu, CaCO3, diamond, U.
5. Chemical plant producing phosphate fertilizer distributing to neighboring provinces.
http://baike.baidu.com/view/185444.htm, http://baike.baidu.com/view/2341720.htm
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60259931
http://baike.911cha.com/a2InNg==.html

Mining report – China does not have official report (e.g., 43-101). Quantity of phosphate does appear reasonable (http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60260402).


5-31-10 – OUTLOOK RPT. – Int’l Fertilizer Indus. Assoc. Annual Conf., Paris (France)
http://www.sterlinggroupventures.com/ifa_june_2010.pdf


2010-2011 – MARKET ANALYSIS – China’s Phosphate + Compound Fertilizer Mkt Analysis + Forecast Rpt (2010-2011)
http://www.researchandmarkets.com/reportinfo.asp?report_id=1503875&tracker=related


11-10-09 – MINING PERMIT [valid to 11-10-14; does not have to be transferred]
http://webcache.googleusercontent.com/search?q=cache:-JnEaibstCAJ:www.gtzy.hunan.gov.cn/gtmh/zxfw/zwdt/jggg/index.jsp%3FpageIndex%3D53%26flowName%3D%E9%87%87%E7%9F%BF%E8%AE%B8%E5%8F%AF+c4300002009116120048322&cd=1&hl=en&ct=clnk&gl=us&lr=lang_zh-CN&source=www.google.com

-- Present Permit allows for 100,000 tons / yr.
-- Sterling plans to use open pit method + to increase production from initial 100K ton / yr to at least 400K ton / yr.
-- Hongyu paid resource fees to Chinese gov’t for 3.13 mil tons of phosphate resources for 5-year permit period only 3.13 mil tons).
-- Anyone who mines in China m/ pay resource tax + mineral resource compensation fee. The mineral resources compensation fees depend on mineral sales revenue, and are payable 2x per yr. See SGGV Post 243.
-- In Hunan province, phosphate rock hung suspended mineral resource tax levy since 10-1-2008.


China has imposed a 100-175% tariff to curtail exports.


Facts about Phosphate:
11th most abundant element
Cannot be synthesized, and is non-renewable.
Essential to process of photosynthesis
Absorbed thru soil (est. 1.5 bil lbs of P is absorbed per year).
Several types used in fertilizer, but in North America, Ammonium Orthophosphates, such as diammonium phosphate (DAP) and monoamonium phosphate (MAP) are dominant, as they contain Nitrogen (another needed fertilizer).