In-Ground & Above-Ground Asset Monetization
The process of monetizing assets is a very detailed process that is, unfortunately, a prime target for Internet-based fraud, often requiring the client to pay the alleged “monetizer” significant amounts of money on an “upfront” basis and ultimately leaving the client without successful monetization of their asset(s). While no process is “fool proof”. Nalten Inc. has gone to great lengths in order to provide our clients with “safety provisions” that hopefully guard against such unscrupulous activities by delivering a business model to our clients whereas:
The mining and processing of inground assets, such as coal, oil, gold and diamonds, is one of the largest industries in the United States. The total financial impact of the mining industry alone is valued at $1.9 trillion, according to the National Mining Association. However, inground assets require huge investments before they can be monetized. The importance and value of inground assets to the economy and their high-profit potential ensure there are no lack of funding sources for qualifying prospectors.
High Yield (HYI) Trade Programs (PPP) These programs are designed to provide the client with extraordinary financial returns that are referred to as “High Yield, High Return”. Even though these programs are designed for participation beginning with $100 Milion minimum
Alternative Funding in lieu of typical financing structures The value that can be leveraged (or assigned) is typically accomplished in the non-domestic market in the form of Private Equity participation and is available for many types of funding, whether for startups, ongoing projects, or to support simultaneous projects of varying structure.
Through our association with credible, proven, “solutions-based” associates, the monetization process will require:
Substantiation of asset ownership (title or other instrument proving ownership
Substantiating, or proving, the asset’s financial value. This is often accomplished via appraisals and/or assay reports
The manner in which the owner of the asset obtained or acquired the asset
The substantiation of the asset being held in a safe location supported by an SKR (Safe Keeping Record) .
Substantiation that the client is in compliance with US Patriot Act and KYC (Know Your Customer), etc. This will most likely have already occurred during the initial process of
Private Equity Financing
Private equity companies, also known as venture capital firms and angel investors, provide companies with inground assets funding in exchange for a share in the ownership of the company. According to a 2010 report by Reuters, private equity firms are stepping up to fill in the funding gap in the resources sector left by the credit crunch. This method of monetization funding is especially attractive for new businesses and entrepreneurs who lack the cash or collateral to obtain funding from traditional lenders.
Asset-based loans are similar to traditional business lines of credit but with more stringent requirements for collateral. Asset-based lending provides loans that are secured by an asset --- just like a mortgage loan is secured by the property you buy with the loan. New companies struggle to receive approval for asset-based loans because they require the company to already have enough assets invested in the company to provide sufficient collateral for the loan. Eligible assets may include real estate, mining machinery, resources inventory, intellectual property and patents.
The government provides incentives to qualifying inground asset holders who require funding to monetize on resources. For example, the Virginia Department of Mines, Minerals and Energy provides incentives to companies willing to start remining operations. These incentives include financial assistance, as well as help with permit and regulation issues.
A creative method for funding the monetization costs of inground assets is to sell a share of the mineral rights to your operation. This method is similar to asset-based loans in that you provide collateral for the loan. However, in this case, mineral rights aren't an asset but the right to a share in future profits. This is also similar to private equity financing in that no assets are required to qualify for funding --- however, it has the added advantage that ownership and control over the company isn't transferred to the lender.
Johnny Evans III