Shareholder Update
Copper King, together with Equity Security Funders has formed two separate companies to purchase another mining project and a minerals processing mill. Copper King will operate both the Mine and the Mill.
The mine is in Arizona and will be developed into an operating mine over an expected time period of approximately 24 months.
The mill is in New Mexico. The mill has an 800 ton per day design capacity. The plan is to refurbish one 400 ton per day circuit to process minerals from the Arizona mine and another 400 ton per day circuit to process precious metals from other mines in the New Mexico area.
Each project has been funded to the tune of $25 million of assets, for a total aggregate appraised asset value of $50 million. A Canadian investor has committed an additional $30 million dollars in equity financing to these projects with the understanding that within three years, Copper King/ESF will buy out the equity investor(s) approximate 33% share of each project at the fair market value. Copper King and our experts estimate that the mine, once developed and ready to produce on a continuing basis, will be valued at approximately $115 million and the mill, once the first 400 ton per day circuit is refurbished will be worth approximately $100 million dollars. Based on those estimates, the buyout of the equity investor(s) for both companies will be approximately $73 million. (These are estimates only.)
Although one investor/partner has committed to funding and agreements are in place, we have not yet received the funding and do not expect to see the bulk of it until after the first of the year (January or February 2020). Thus, Copper King and ESF are looking for additional funding sources for both a bridge to the final funding and as a possible backup.
Once the funding is in place and Copper King begins to receive revenue on the "mining operations" contracts, Copper King will be able to show the viability of a clear path to continuing and increasing revenue. This will push FINRA to list Copper King shares for trading. Our ability to show projected (or hopefully) actual revenue for Copper King will enhance its market price.
Thanks for your continued support. We will keep you updated on our progress.
Lee Abbott
and the Copper King/ESF Team.
