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Investment options
Why invest in Lusso Tesoro?
Why now?
A golden investment opportunity
Security Trust Deed
About us
What we do
Competitive advantage
Our governance
Chain of integrity
Strategic Partners
Strategic Partner SRK
Cost estimates
THE TABLE OF CONTENTS2.
3.
4.
5.
6.
7.
9.
10.
11.
12.
13.
14.
15.
Legal Relationship
Alluvial gold
mining process
The Geopolitics
Latest news
16.
17.
18.
19.
1
2
INVESTMENT OPTIONS
Investors have the option to invest either via a 1 or 2 year loan note.
OPTION 1 12-month loan note investment term with 15% return.
OPTION 224-month loan note investment term with 35% return.
SHARE OPTION
IMPORTANT INFORMATIONSECURITY: DEBENTURE OVER THE GROUPS ASSETS, WITH CAPITAL TRUST & MANAGEMENT SERVICES LIMITED AS THE SECURITY TRUSTEE.
THE COMPANY WILL OWN ALL CAPITAL ASSETS, THE LAND, MINING RIGHTS, PLANS AND EQUIPMENT.
SITE INFORMATION: THE COMPANY IS ON THE VERGE OF COMPLETING ACQUISITION OF THE SHARES IN A GOLD MINING COMPANY IN THE REPUBLIC OF GUINEA THAT CONTAINS THE MINING RIGHTS TO OVER ONE HUNDRED SQUARE KILOMETERS OF LAND IN THE REPUBLIC OF GUINEA. FULL INFORMATION CAN BE FOUND IN THE INFORMATION MEMORANDUM. CURRENCY: THE COMPANY CAN ACCEPT INVESTMENT IN A NUMBER OF CURRENCIES, NAMELY USD, EUR OR USD.
THIS FACT SHEET SHOULD BE READ IN CONJUNCTION WITH THE INFORMATION MEMORANDUM, AVAILABLE ON REQUEST, WHICH PROVIDES FULL DETAILS ON RISK FACTORS, SITE INFORMATION AND PROJECTED CASH FLOWS.
Following the two year loan note, investors will be rewarded with the option to purchase shares in the Company at 20% discount. This issue will be at the Directors discretion.
WHY INVEST IN LUSSO?
o Owner Managed.
o Debenture over the Groups assets.
o Truly unique opportunity which cannot be replicated.
o Close to supply of physical Gold.
o Receive dividends and redeem shares for physical Gold.
o Shareholder and Management interests aligned.
o Governance - Policies and Procedures in place are above and beyond other businesses.
o Gold is a Safe Haven, supply has halved and demand has doubled.
o FSA regulated Security Trustee.
3
WHY NOW?
4
The current pandemic is causing significant economic uncertainty worldwide, the effect of which has not been yet felt globally.
Lusso Tesoro is an opportunity for select investors to protect their families in this time of uncertainty.
Availability of physical gold is reducing.
Supply has halved and demand has doubled.HK ceased to exist as
a global financial centre in May 2020, with much unrest in the City.
Tariffs & Sanctions may have the impact of decoupling business from Chinese products.
Artificial support of the Stock market.
Many countries are on the brink of introducing digital currency. This will have lasting implications for the US$ dollar as more and more countries do this.
Increased supply of currency will increase inflation and destroy purchasing power.
The government is currently spending more money than it is earning and will eventually be forced to compensate for these deficits by raising taxes.
The current pandemic is causing significant economic uncertainty worldwide, the effect of which has not been yet
COVID-19
HK ceased to exist as a global financial centre in May 2020,
which has not been yet felt globally.
HK ceased to exist as a global financial centre in May 2020,
HONG KONG
Tariffs & Sanctions may have the impact of decoupling business decoupling business from Chinese products.
centre in May 2020, with much unrest in
Tariffs & Sanctions may have the impact of decoupling business decoupling business from Chinese products.
centre in May 2020, with much unrest in
US-CHINA TRADE WAR
a global financial centre in May 2020,
HONG KONG centre in May 2020,
with much unrest in the City.
KONG
US FEDERAL RESERVE
the brink of introducing digital currency. This will have lasting implications for the US$ dollar as more and more countries more and more countries do this.
the brink of introducing digital currency. This will
have the impact of decoupling business decoupling business from Chinese products.
TRADE WAR
Stock market.
Many countries are on the brink of introducing
Artificial support of the Stock market.Stock market.
Many countries are on the brink of introducing
support of the Stock market.
RESERVE
US RESERVE STATUS
do this.
digital currency. This will have lasting implications for the US$ dollar as more and more countries more and more countries do this.
the brink of introducing digital currency. This will
Stock market.
Many countries are on the brink of introducing
support of the Stock market.
US RESERVE STATUS
FIAT CURRENCY PRINTING
The government is currently The government is currently spending more money than spending more money than it is earning and will eventually be forced to compensate for these deficits by raising taxes.
Increased supply of currency will increase inflation and destroy purchasing power.
The government is currently spending more money than spending more money than it is earning and will eventually be forced to compensate for these deficits by raising taxes.
Increased supply of currency will increase inflation and destroy purchasing power.
FIAT CURRENCY PRINTING DEFICITS
5
A GOLDEN INVESTMENT OPPORTUNITY
INVESTMENT OVERVIEW
Amount of funds to be raised
Minimum investment
Maximum total subscription
Closing Date
12 month return on investment
24 month return on investment
Security Trustee
£10,000,000
£25,000
£10,000,000
31st January 2021
15%
35%
The company will own all key AssetsLand
Plant + Equipment Mining Rights
Castle Trust & Management Services Limited (FSA Regulated)
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Security Trust Deed - Castle Trust Group
In taking security from a borrower, several benefits are granted
to the lender:
1. The Lender has rights against the assets of the borrower, mainly in the form of a right to ownership. In case where the borrower fails to perform its obligations under the loan, the lender will be able to use these rights to take possession or sell the asset/s to repay the loan. Castle Trust Group will act specifically in the lenders interest at all times. Castle Trust have the right to sell all assets owned by 79th Group should any of the companies ever become in a default position.
2. Taking a security gives the lender a priority over other
lenders in receiving payment.
3. Taking a security over an asset constitutes an efficient way
for the lender to recover claim against the borrower.
6
Powered by 79th GRP Limited, which includes 79th Luxury Living Limited and Lusso Tesoro. We are
not currently associated with any other companies who may have a similar name, branding or logo.
Please do contact us should you require any further clarification.
David Webster - David has over 25 successful years experience in the property sector, both developing and as a
landlord. David started with one property and developed both significant personal and corporate portfolios with
development values in excess of £500 million of both residential and commercial property. At the height of
ownership, David was one of the largest private landlords in the country, and was an exclusive partner of the Professional
Footballer Association (PFA). Following David's successful career in property, David entered the mining sector,
consulting directly for some of the world's most renowned commodity houses and gaining significant commercial
experience in the mining industry. David also holds a RYA yachting license in the UK, and is a keen golfer.
Jake Webster - Jake has over 10 years experience in the property sector, consisting of portfolio management, deal structuring & private finance. Over the past five years, Jake has more recently been involved in the mining sector, and has worked with global commodity houses to establish and setup commodity supply chains, as well as participated in the setup of alluvial gold mines with his father Dave.
Jake is also an accredited rough diamond grader and holds experience in the setup of diamond purchasing offices. On a personal level, Jake is a fully qualified Pilot holding an EASA license, as well as a martial arts instructor.
The owner managers of Lusso Tesoro have an established track record of raising capital internationally and will apply that to Lusso Tesoro. They have been on the ground in the
Republic of Guinea for years undertaking gold mining operations, logistics, and trading. The principals have residence and work permits for the Republic of Guinea and will be able to
work, live and supervise the gold mining business in the Republic of Guinea. They have significant experience and relationships in the Republic of Guinea that will benefit the
business. The principals have been to the targeted gold mine acquisition in person, they know the area and have worked with the local communities and carried out verification and
small scale mining themselves.
ABOUT US
David Websterexperience in the property sector, both developing and as a
landlord. David started with one property and developed both significant personal and corporate portfolios with
development values in excess of £500 million of both residential and commercial property. At the height of
ownership, David was one of the largest private landlords in the country, and was an exclusive partner of the Professional
Footballer Association (PFA). Following David's successful career in property, David entered the mining sector,
consulting directly for some of the world's most renowned commodity houses and gaining significant commercial
experience in the mining industry. David also holds a RYA
- Jake has over 10 years experience in the property sector, consisting of portfolio management, deal structuring & private finance. Over the past five years, Jake has more recently been involved in the mining sector, and has worked with global commodity
commodity supply chains, as well as participated in the setup of alluvial
Jake is also an accredited rough diamond grader and holds experience in the setup of diamond purchasing offices. On a personal level, Jake is a fully qualified Pilot holding an EASA license, as well as a martial arts
After both diligently building their business, 79th Luxury Living Limited, and raising capital from and delivering returns to international investors, they ventured out to the Republic of Guinea to start a gold trading business.
7
THE STORY SO FARHISTORICAL TIMELINE.
joint Venture with local community members.
Gold mininggold mine with other parties.
Joint Venture and supply of gold to India, London and Dubai.
International trading gold to commodity brokers.
Supply of West African
“The only persons to import raw West
Africa GOLD to us, in the last 16 years” -
Sheffield Assay Office
and procurement of gold mines in the Republic of Guinea.
Advisory on the purchasingthe UK real estate
business.
Revinvigoratedto launch Lusso Tesoro.Preparation
members.
1
other parties.
23
brokers.
4
Office
5
6
business.
8
9
8
PRE-ACQUISITION.
1. The Principals have been to the site and completed testing.
2. Technical due diligence on two sites has been completed, one of which has been produced by the world renowned SRK Consulting.
3. The Principals have identified alternative options for acquisition.
4. Fund raising required to acquire the mine.
WHAT WE DO
THE FIRST ACQUISITION OPPORTUNITY.
POST-ACQUISITION.
1. Expand on SPA will be signed shortly.
2. The Head of State of the Republic of Guinea will publish a Decree of the mining title.
3. The £5.6M GBP purchase price will be paid four months later.
4. The cost model of Lusso Tesoro is based on the financial model of an alluvial gold mining business.
1. Mining will start within a month.
2. After acquisition, the Industry Standard NI43-101 Report or equivalent to affirm reserve values, will be completed by SRK Consulting for the first mining site.
3. £5.6M GBP purchase price will be paid - four months after SPA signed.
9
COMPETITIVE ADVANTAGE The Lusso Tesoro management team has established;
10
Eight year track record on the ground in the Republic of Guinea
Established credibility
Working relationships
Local community relationships
Local business reputation
Total of all ‘pieces’ provide a unique
opportunity with a company established
in the region with a large investment already in place.
Eight year track record on the ground in the Republic of Guinea
Eight year track record on the ground in the
Established credibilityEstablished credibility
Working relationships
2 3 4
relationshipsLocal community relationships
relationships
large investment large investment
Total of all ‘pieces’ provide a unique
opportunity with a company established
in the region with a large investment
Local business reputation
Total of all ‘pieces’ provide a unique
opportunity with a company established
in the region with a large investment
relationships
Local business reputationcommunity
relationships
41 5 6
We truly believe this is a unique opportunity for investors, who stand to gain for our extensive and intensive time spent in the Republic of Guinea building up relationships and understanding the politics in the area, and gaining invaluable knowledge of the mining sector. We receive preferential treatment in the area, and have close relations with the Government, therefore we are able to purchase gold mines and mining permits at reasonable cost, with a pipeline of such mines available for investment. It remains hard to put a value on this goodwill afforded to our Company and Directors.
OUR GOVERNANCE
In the past, allegations of bribery, scandal and money laundering, has reduced investor trust.
The historical track record of the mining industry is fraught with instances of;
Bribery, Tax evasion, Money laundering allegations and losses for investors, customers, and partners.
Our money laundering prevention strategy is at the core of Lusso Tesoro Limited company practices and culture - we are open, transparent & compliance is the core of the business.
OUR THREE PILLARS OF CONTINUOUS COMPLIANCE.
Corporate Criminal Offence
Compliance
Corporate CriminalOffence
Compliance
UK. Anti - Bribery
Compliance
Tax evasion, Money laundering allegations and losses for investors, customers, and partners.
Money laundering allegations
Corporate CriminalOffence
Compliance
UK. Anti - Bribery
Compliance
UK. Anti - Money
Laundering Compliance
11
Our enhanced compliance procedures afford the highest protection to both our family funds, and investor funds, above all competitors.
CHAIN OF INTEGRITY
Mining camp
Gold recovery24 Hour
recording
G4S SECURITY
Book keeping
The Republic of Guinea Central Bank
Melted doré gold bars stamped
3 % Export Tax
Transported to the airport
Emirates to the UK
Received in London by Ferrari
HMRC Registration
Ferrari
Transported to Sheffield Assay
Office
Converted to Gold Bullion
Remains in possession of Sheffield Assay mint
Transfer to third party
Tamper proof packaging
The Republic of Guinea military
Sheffield Assay Office
Impurities removed from the gold
Stamped and report produced for each bar
Transported to the Republic of Guinea Central
Bank
Foreign and Commonwealth
Office Registration
Securing the world
Mining camp
Securing the world
G4S SECURITY
The Republic of Guinea Central Bank
The Republic of Guinea military
Ferrari Sheffield Assay Office
12
Transported to the airport
14
STRATEGIC PARTNER
SRK Consulting: Specialists in the Survey and Assessment of the viability of land for mineral exploitation Operates as a mining subcontractor Provides technical due diligence Supports the process of selecting and developing mining concessions for purchase and operation
SRK Consulting has been engaged by Lusso Tesoro to: Conduct site surveys Conduct satellite imagery Perform drill sampling Perform mineral testing Produce all surveying, sampling, geological reports
and all other technical due diligence that will be necessary to verify the viability of the land for the presence of gold.
Lusso Tesoro has partnered strategically with SRK Consulting, a world class mineral land consultancy organization that is
recognized as the world’s best mineral land experts.
15
Cost estimates based upon SRK Consulting report of first potential acquisition.
Estimated Costs
Cost of recovery of gold from mine between
USD Per Troy Ounce
$550 and $750
Per a fully accredited survey by the globally accredited company - SRK Consulting.
Total land area acquired with mining titlesis greater than
100 sqkm
Verified gold reserves $100M USD
Total area Site tested 2 sqkm
Report indicates a minimum of gold from one 'hotspot' or “Site” only (2sq/km) is worth
$100M USD
Estimated total reserves of Site 25 metric tonnes
1 Ton of gold is currently worth $54.7M USD
Overall mean cost of extraction will be in the range of $15 TO $20M PMT
Current value of gold circa
Use of funds
Total GBP
Total of funds raised to include mine
purchase, mining equipment and relevant permits and on
the right hand side.
INSURANCEThe gold mining operation will
have:
1. Geopolitical insurance
2. Key man insurance
3. All available commercial
insurance
KEY KPI per metric tonne {PMT) USD
£10,000,000
$1,928.20
Lusso Tesoro Holdings Limited
Non-Voting B Shareholders
The Republic of Guinea corporation tax for mining companies is 30% of profits.
Lusso Tesoro SARL gold mining company
Mining Titles Land Mining
equipment
15%
Share Ownership
A UK Company
Lusso Tesoro Holdings Limited will transfer 15% of the issued ordinary Shares of Lusso Tesoro SARL to the Government of the Republic of Guinea.
The Republic of Guinea government will publish a Decree awarding the Mining Titles.
A Shareholders + Directors
LEGAL RELATIONSHIP WITH THE GOVERNMENT OF THE REPUBLIC OF GUINEA
Under the mining code of the Republic of Guinea, after the acquisition of 100% of the Shares of the mining company, 15% of those ordinary Shares will be transferred and assigned to the Government of the Republic of Guinea.
The Government of the Republic
of Guinea
85% Share ownership
16
ALLUVIAL GOLD MINING PROCESS
The water and gold-bearing material passes through the sluice boxes and the heavy, dense gold material sinks and becomes trapped, while the lighter material and water washes over it. This collects the gold.
The Trommel screen separates the gold-bearing material by allowing it to pass through holes while larger rocks, pebbles and boulders are caught in a rotating cylinder.
The hopper blasts the gold-bearing material with water in order to clean it, break up the material and help to separate the gold.
The gold-bearing material is placed directly into feeder.
The gold bearing material is excavated from the mining site and transported to the Gold wash plant.
The washing jig separator empties the collection mats from the sluices.
The black sand concentrate material that you end up with after processing the gold
bearing material separates the valuable minerals contained in the black sand.
17
Excavator Feeder Hopper Trommel Screen
Sluice Boxes
Washing jig Separator
Gravity wash
for gold recovery
Importing and exporting gold involves proving its source, and having all of the correct paperwork and registrations. Lusso Tesoro managers have experience with importing mined gold and precious stones into the UK with all of the required and proper registrations.
SUPPLY CHAIN & LOGISTICS
Economic stability Debt cancellation, macroeconomic
reforms, control of inflation, improving the international balance
of payments, foreign exchange reserves.
Establishment of the main republican institutions
The Constitution Court, the High Judicial Council and the Court of Auditors.
Strengthening democracy Presidential elections (2010, 2015,
parliamentary elections (2013), municipal and community elections
(scheduled for 2016).
Discovery of Uranium in 2007 Due to the need to reduce proliferation risk, those with interest need the possibility of security on the ground in the Republic of Guinea, as well as the possibility of a governance frame work being introduced and maintained.
THE GEOPOLITICS OF THE REPUBLIC OF GUINEATHERE IS LONG TERM GEOPOLITICAL SECURITY IN THE REPUBLIC OF GUINEA
DUE TO THE PRESENCE OF URANIUM ORE.
GOVERNANCE FRAMEWORK
NEED FOR GEOPOLITICAL STABILITY
There is a risk that uranium ore concentrate could be diverted, either from the site where it was processed, or during transport, so the legitimate owners would no longer have control over it or how it is used. There is therefore a need for physical protection of the ore concentrate at both mining and milling sites, and during transport, to reduce the risk of diversion. (SIPRI Policy Paper 39, November 2013)
The Republic of Guinea mining industry benefits from stability of Uranium presence The Republic of Guinea mining industry will proceed and continue to provide an environment conducive to entrepreneurial gold mining, due to the geopolitical security driven by the need to maintain security and governance over the Uranium reserves of the country.
Installation of fiber optics and improved access to ICT.
Opening of the Republic of Guinea
To massive, high-quality foreign investment.
Loss of custody and failures of physical protection of Uranium oreEstablishment of the main republican
The Constitution Court, the High Judicial
FRAMEWORK
during transport, so the legitimate owners would no longer
need for physical protection of the ore concentrate at both mining and milling sites, and during transport, to reduce the
Loss of custody and failures of physical protection of Uranium ore
18
Economic stability Debt cancellation, macroeconomic
reforms, control of inflation, improving the international balance
of payments, foreign exchange
NEED FOR GEOPOLITICAL STABILITY
mining and milling sites, and during transport, to reduce the risk of diversion. (SIPRI Policy Paper 39, November 2013)
The Republic of Guinea mining industry benefits from
The Republic of Guinea mining industry will proceed and continue to provide an environment conducive to entrepreneurial gold mining, due to the geopolitical security driven by the need to maintain security and governance over the Uranium reserves of the country.
Installation of fiber optics and improved access to ICT.
Opening of the Republic of
To massive, high-quality foreign
mining and milling sites, and during transport, to reduce the
Installation of fiber optics
https://www.cnbc.com/quotes/[email protected] http://www.lbma.org.uk/downloads/Forecast-2020.pdf
AUGUST 2020 GOLD PRICE - LATEST NEWS
Risk appetite amid high uncertainty
As we look ahead, we expect that the interplay between market and economic growth will drive gold demand in 2020. In particular, we focus our attention to:
Financial uncertainty and lower interest rates Weakening in global economic growth Gold price volatility.
“UBS Investment Bank strategist Joni Teves believes the price of gold could “break the highs” seen earlier this year."
https://www.mining.com/ubs-says-gold-price-could-break-the-highs-seen-this-year/
http://www.lbma.org.uk/downloads/Forecast-2020.pdf
Risk appetite amid high uncertainty
As we look ahead, we expect that the interplay between market and economic growth will drive gold demand in 2020. In particular, we focus our attention to:
Financial uncertainty and lower interest ratesWeakening in global economic growthGold price volatility.
https://www.cnbc.com/quotes/[email protected]
“UBS Investment Bank strategist Joni Teves believes the price of gold could “break the highs” seen earlier this year."earlier this year."earlier this year
https://www.mining.com/ubs-says-gold-price-could-break-the-highs-seen-this-year/
believes the price of
19