Because of the limited availability of bank or market capital at reasonable to moderate interest rates of less than 18% annually, miners are often forced to begin operations without the properly needed equipment and working capital, making their mines less productive, and profitable. Other than buying diamonds for our many suppliers, LOKORO plans to enter into mining joint-venture agreements with many of our mining suppliers who are stakeholders in productive small scale diamond mines.
Mining Joint-Venture Price Advantage
Through our joint venture partnership agreement with selected miners we would be able to hedge against any small or large market price deviation and moreover, give LOKORO a constant supply of rough diamonds without the normal acquisition cost required when obtaining rough diamonds from other non partners in the market. In joint-venturing with local miners LOKORO is granted:
- Exclusive rights to marketing and sales of all diamonds discovered in mines which we have invested.
- Repayments of LOKORO investment capital before mining profits are realized.
- A 50% share of all profits received from diamonds marketed and sold from the specific mine through LOKORO.