Gold Refinery

Page Mali’s management and a number of professionals are busy preparing a number of studies and financing in establishing a Small Scale Gold Refinery in Bamako (Mali).

CURRENT SITUATION
The gold industry in Mali is currently vibrant as numerous multi national corporations are currently involved in development of deposits. The majority of the producing large scale mines are exporting their product to various international refineries as no facilities are available locally (Mali). Artisan of small scale miners are selling their gold to a number of traders on an informal basis and exact quantities are therefore difficult to determine. Gold is also brought in from the neighboring countries, Guinea, Togo, Burkina Faso and others.  This is then sold to local traders and the exact origin of these consignments are difficult to determine. Other traders if they do not find any purchasing power of their gold product in Mali, they are traveling the West African countries to source cash buyers.

The same conditions exist in most gold producing countries in Africa with the exception of South Africa mainly due to the existing legislation and lack of facilities. In order to justify an investment as is proposed, preferably legislation would have to put in place to curtail the “free trade” situation that exist at present. This would then also assist the collection of the various taxes levied on these trades and mining operations. Using South Africa as an example, legislation can be implemented within a very short period that would vastly improve the viability of this project as well as creating a healthy environment for further investment into this industry, in addition creating employment to start with in Mali, due to the buying centers and then the rest of West Africa.

Most African population are shy, mistrustful or upset by governments introducing any  legislation that restricts their present tax free income generating process. This is why, Page Corporation’s idea of minimum direct government legislation (to start with), because Page Mali Gold Mine Ltd will be a private controlled company with the government retaining a very small percentage of equity, therefore still keeping the present status quo of free gold trade, with the minimum or indirect government interference can produce excellent results bringing this gold trade in Mali and the rest in West Africa  in to control.

CONCEPTION.
Page Corporation via its agency in Mali of Page Management Mali Limited also Known as Page Mali, established an office in Bamako Mali the 16th June 1999 with the primary aim of mineral resource development and trade. A number of shot and long term supply arrangements were successfully negotiated with local artisan (small / scale miners) coops, associations and number of private dealers including other entities in the adjacent West African countries. With closely forged ties between Page Corporation and other Internationally renown and even private own small scale refineries world wide well in place, the concept of forming a unified front to exploit and develop gold resources in Africa and specifically in West Africa were formed. Mali’s location in relation to its neighboring countries, as well as its own mineral wealth offers an excellent opportunity to bring this concept to reality as well as setting a precedent for the rest of Africa to follow.
Following the lead of Page Corporation’s founder and Chairman Gus Barbero, together with a number of well connected entities in the gold industry, this concept will be transferred to reality and "in principal" agreements with a number of local and surrounding gold dealers were reached. The primary objective of this project was to ensure maximum benefit for the people of Mali and in tern the whole of West African countries (ECOWAS) and at the same time being economically viable.
After an extensive evaluation of companies and organizations currently operating in Mali, it was concluded that the establishment of a new company for this exact and defined purpose would be beneficial to all parties concerned. This would also offer the opportunity to staff such a company with the necessary expertise and experience required for what is in essence a very specialized field of trade. Page Mali Gold Refinery or similar name is about to be registered, subject to the finalization of the total funding secured.

TECHNOLOGY.
Page Corporation is seeking preferably one or more well renown gold refineries to be selected as the ''operators", for the refinery to retain a preferably small equity in the newly formed company. The balance equity would be held by Page Corporation’s newly created affiliated company, the company that will supply all the refinery equipment and process, any private Investor/s and the Malian Government.
This venture will be run on a "small profit margin” with the primary objective of value.-adding to the existing production. In addition to these objectives, it would also form the perfect vehicle for establishing" control and regulation with regard to the amount of gold produced, imported and exported       not only in Mali but eventually the rest of the ECOWAS counties.
As this newly established refinery would have to operate for a minimum period of five years before a "hallmark" will be accredited, all the production would have to be hallmarked by an existing accredited refinery. A well renowned refinery with excellent reputation for quality, competitiveness and short turn-around time will be an added benefit to this project. Under such refinery’s management and system implementation it could also be possible to shorten the five years considerably.

FINANCE REQUIREMENT AND PLANNING.
Financing for the total project would be provided by any interested party or parties. This would be in various forms to accommodate local conditions as well as taking into consideration the individual requirements of the participants in this project.
The project can be undertaken in different stages or Phases subject to the quantity of gold delivered for processing only in Mali.

Phase – A: The establishment of a Small Scale Gold Refinery (smelting works), comprising the purchasing of fair size of land (site) and the construction of a secure building equipped with refining / purification of the virgin gold to say 90% purity, then smelting it to dore bars and exportation. In every phase of operation and finance thereof, the buying centers and cash-flow are included. For such operation an initial investment of US$ 5,000,000 (five million USD) will be sufficient, subject to the number of buying centers developed.

Phase – B:  The establishment of the extension of the Small Scale Gold Refinery operations in building area to include a small purification process increasing the purity to 90% plus up to GLD purity and casting them in to the Refinery’s trade mark bars. Again such operation is subject to the quantity of gold processed and future projections. In every phase of operation and finance thereof, the buying centers and cash-flow are included For such operation an investment of US$ 15,000,000 (fifteen million USD) will be sufficient, subject to the number of buying centers developed.

Phase – C:  After an average period of 5 (five) years in operation, proceed with the establishment of International Hall Mark of the refinery and bars. For such operation an estimated investment of US$ 2,000,000 (Two million USD) should sufficient
Therefore a maximum total of say US$ 25,000,000 (Twenty five million US$) investment can be estimated to include any physical purchasing “cash on hand”.

 IMPLEMENTATION STEPS REQUIRED.

Phase - A

1. Formation of the Page Mali Gold Refinery Ltd joint venture with all parties concern.
2. Proposed legislation tabled before parliament and subsequent implementation thereof if Malian Government is willing.
3. Phase - A of the project finalized between participating parties. 
4. Appointment of "buying agents" by Page Mali Gold Refinery Ltd.
5. Final site selection and finalized project plans submitted.
6. Financing and credit facilities implemented.
7. Construction of buying centers and refinery.
8. Artisan/small scale miners assistance program implementation in Mali.

Phase - B:

1. Buying centers to be constructed at neighboring countries,
2. Financing and credit facilities implemented.
3. Financing and credit facilities implemented.
4. Artisan/small scale miners assistance program expanded to neighboring countries.

Phase - C:

1. Feasibility studies completed for the International acceptance and registration of the refinery’s Hall Mark.
2. Financing and credit facilities implemented.
3. Acquiring additional supplies of gold to be refined throughout Africa or Internationally.
4. Negotiate with local or other large gold mine producers.

For further information, please contact PAGE via e-mail info@pagelimited.com or go to our CONTACT PAGE
© 2006 Page Management Limited

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