implementation summary11

Consultancy, Negotiations & Supplies Cameroon Inc (CONEGS-CMR Inc)

Project Title

Purchase & Marketing of Gold Bars (including locally exploitation & processing of Gold) Worldwide, through established channels, Including stockpile in recognized

Banks in the Republic of Cameroon and Abroad, setting the Foundation to kick-start the principal Project: CONEGS-CMR Agro-Industrial Projects,

including Agro-Industrial Villages, Infrastructural Development & Associated Programs

Investment Summary

Duration of Loan Disbursement: Within 45 Days Duration of loan repayment: Within 05 Months

FUND PROVIDERS:

Back-up startup Funds by Ecobank Cameroon SA: FCFA 1 980 000

000.00 (carryout pre-investment activities – to be backed up by the letters of credit) Istanbul Gold Refinery, Turkey & TT Dom, Belarus: USD 37 830 000.00 (through

Revolving Letters of Credit)

Special Needs: Functional revolving (revolving three times Credit Line of FCFA 660

Million FCFA, within a period of 45 days to be covered by a Land Title, with intention to buy).

PROJECT TITLE:

PURCHASE & MARKETING OF GOLD BARS WORLDWIDE, THROUGH ESTABLISHED

CHANNELS

Commodity: AU GOLD BARS Origin: MALI, TANZANIA, GHANA, CENTRAL AFRICAN REPUBLIC & THE CONGOS

Quality: 22.7 CARATS Purity: 96 %

Total quantity: 970 KG GOLD BARS Delivery per month: 970 KGS GOLD BARS, REVOLVING

FIRST TRIAL SHIPMENT Terms of delivery: BY AIR

Contract Period: 01 YEAR Destination: CAMEROON, SWITZERLAND, EUROPE, TURKEY, RUSSIA,

Packaging: Metal boxes USA, ASIA, CANADA ETC

Price: USD 32 000.00/KG

Mode of payment: USE OF LETTERS OF CREDIT, FULLY FUNDED, DIVISIBLE, TRANSFERABLE, IRREVOCABLE, VALUE ON SIGHT,

PAYABLE EIGHT WORKING DAYS ON RECEIVED OF GOODS

Ref: CONEGS/2016/11/28 PF/GB/010 Date: Monday November 28th

2016

PURCHASE & MARKETING OF GOLD BARS WORLDWIDE, THROUGH ESTABLISHED & PUBLIC

EXHIBITIONS

PROBLEM STATEMENT:

The lack of State or Sustained Private Guarantee to secure investment loans, and the inability of designed and executing projects to generate sufficient funds to

service acquired loans, has rendered project funding in the Republic of Cameroon very difficult and at times impossible.

The core problem is not only limited to lack of loan guarantors, but also, most of the time, the problem is laid on the door step of poor project management

strategies: structuring of salaries, workers’ facilities, including, social and administrative structures.

From conception through research and project development, this project: Purchase & Marketing of Gold bars Worldwide, through established Public &

Private exhibitions, creating and sustaining investment platforms for the implementation of the different projects of the corporation, taking into

consideration the above listed shortcomings of project development, management & sustainability.

This project is aimed at creating and sustaining jobs, sufficient income and assets to guarantee and service loans under the cover of Private Sector Initiatives. In

addition to providing sufficient funds to service the loans, these generated funds will also serve as investment funds for the continuity of the project

PROJECT CONTEXT SUMMARY:

This project is presented by: Consultancy, Negotiations and Supplies Cameroon Incorporated (CONEGS-CMR Inc). CONEGS-CMR Inc is a Company

registered in Cameroon, limited by shares and governed by the Uniform Act on Commercial Companies and Economics Interest Groups (OHADA). Registered

CONSULTANCY, NEGOTIATIONS & SUPPLIES CAMEROON Incorporated (CONEGS-CMR Inc)

in 2005 and recapitalized in 2015 with a share capital of FCFA 42 935 000 000 000.00 with registration number: TPPRR/RC/LBE/B/049, having its

Registration office in Buea and Administrative office in Yaounde.

The goal of CONEGS-CMR Inc is to contribute in resolving the infrastructural needs, under-development etc in Cameroon and contribute positively in taking

the country closer to emergence through Agro-Industrial/infrastructural Investments & Mining/Petroleum Development, within interplay of social programs

The vision of CONEGS-CMR Inc is, in addition to Contribute in transforming the Republic of Cameroon into one of the key bread baskets of the world and

reversing the flow of processed agricultural products from Europe to Cameroon, it shall also contribute in the Infrastructural, Academic, Medical and Cultural

growth of the country, thereby creating and sustaining employment openings.

The Proposed Investment Funds shall be Guaranteed by eighteen (18) hectares of land located within the Business Sector of Yaounde (MOKOLO Business

Centre), Republic of Cameroon, with a Metre Square, currently, evaluated at FCFA 300 000.00

CONTENTS OF PROJECT :

Complete Concession Transfer, COLOMINE Mining Concession of 300 Km2, East Region, Republic of Cameroon, own by Gold Label Mining

SARL BP 35081, Yaounde, Cameroon, Reference N°: B652/SG/PR du 22 Juin 2015, Researche N°: 394, called COLOMINE, acquire an

additional 9 700 Km2 of concessions in the East Region and other Regions through purchase of acquired concessions

Carryout Geotechnical, Geophysical, Geo-economics and geological Studies in the given concession on 300 KM2 of land

Purchase and transfer of Machines and Equipment to the concession area to start the studies and at same time start Artisanal and semi-industrial

mining at the same time on 10 000 Km2 piece of land

Start the purchase of Processed Gold (Gold Bars), starting with a trial quantity of 970 KG, to be followed by a monthly quantity 970 KG,

increasing systematically, to attain the monthly estimate of 3 500 Kg processed gold bars.

Continue negotiations with National Hydrocarbon Company (SNH) and the Ministry of Mines, Industries and Technological Development for

the Purchase of Six (06) Blocks of Petroleum Blocks, increasing concession total land area to 5 000 Km2,

OBJECTIVES OF THE PROJECTS

Create and sustain an affordable guarantee for heavy investment funds that will sustain the projected activities of the corporation, namely:

Agro-Industrial Projects, including Housing & Infrastructural Development, leading to the development & sustainability of:

29 500 000 Hectares of Agricultural Lands, including 10 million hectares of land for maize & soya beans cultivation in the Grand

North Regions, 04 million hectares on orchard management, 05 million hectares Cocoa cultivation, 03 million hectares of wildlife

management/ranching, 03.5 million hectares for forest regeneration/wildlife management, 03 million hectares on Rubber cultivation

etc

Ten Agro-Industrial Villages, Twenty-Two Satellite Villages etc

Developing and tarring 980 Km of farm to market roads, 880 intercity roads etc

Purchase & development of Six Petroleum Blocks leading to the processing & storage of Petroleum by-products

Acquiring 10 000 Km2 concessions for minerals exploitation, starting with Artisanal Mining, Semi & Industrial Mining, after carrying out

Geological, Geo-Technical, Geo-Economic and Environmental impact Assessment Studies

Acquiring 05 000 Km2 petroleum concessions for exploration, exploitation and refinery of petroleum after carrying out Geological, Geo-

Technical, Geo-Economic and Environmental impact Assessment Studies

Transport & Tourism

Artefacts collection & management and Entertainment

Creating & Sustaining Investment Financial Institutions

Within 10 years in operation, the project will generate and sustain more than five (05) million direct and indirect jobs.

S T R U C T U R I N G O F T H E P R O J E C T S :

This project is self-financing, revolving on the purchase, development & production of Gold Bars (selling & using others as bank deposits) and researching on

petroleum deposits to function as guarantees for sustain investment loans. The goal here is to:

Research and develop 300 KM2 land of Gold Mining in Colomine, East Region of the Republic of Cameroon, an area rich in Gold & Diamond

Purchase 12 610 KG of Gold Bars from Mali, for the first year, all shall be sold, but as from year two, 5 610 Kg shall be reserved in banks, both

national and foreign, to serve as guarantee in Bank for long term loans

Research and develop six blocks of petroleum in Rio de Rey Basin (Bakassi East – 364.07 Km2, Bomana - 139.67 Km

2 & Lungahe – 83.60 Km

2),

Douala Basin – Kribi-Campo (Etinde Exploration – 139.67 Km2 & Elombo – 139.67 Km

2) and Mamfe Basin (Manyu Block – 1 209 Km

2)

Start land management program for Agro-Industrial Program nationwide, with emphases in the Grand North Region.

P R O J E C T C H A R A C T E R I Z A T I O N , D I S T R I B U T I O N & A N A L Y S I S

The project is analyzed in three domains, namely:

Research and develop 5 000 KM2 land of Gold Mining in the East Region of the Republic of Cameroon, an area rich in Gold & Diamond &

Purchase 12 610 KG of Gold Bars from Mali, selling all in year I, as from year II, selling 50% and saving 50%, depositing these quantities in

foreign & local banks to function as guarantee for long term loans.

T H E C U R R E N T M A R K E T P R I C E O F G O L D I S A N A L Y Z E D A S F O L L O W S :

Gold Spot Prices Gold Price Today Purchase Price

Gold Price Per Ounce $ 1 306.80 $ 00

Gold Price Per Gram $ 42.01 – FCFA 25 079.97 $ 32.00 – FCFA 19 104.00

Gold Price Per Kilo $ 42 014.56 – FCFA 25 082 692.32 $ 32 000 – FCFA 19 104 000

G O L D D E M A N D

All over the world, gold has emotional, cultural and financial value, which supports demand across generations. Gold is fashioned into jewelry and used to

manage risk in financial portfolios and protect the wealth of nations; it is found in smart phones, and cutting-edge medical diagnostics.

These diverse uses for gold, in jewelry and technology and by central banks and investors, mean that across the decades different sectors in the gold market

have risen in prominence at different points in the global economic cycle. This self-balancing nature of the gold market means that, typically, there is a

sustained base level of demand.

G O L D S U P P L Y

The annual total supply of gold has averaged around 4,000 tons over the last 10 years. While many will be aware that gold is sourced from the earth through

mining, this is not the only way in which gold is supplied to the market. Total mine supply – which is the sum of mine production and net producer hedging –

accounts for two thirds of total supply. Recycled gold accounts for the remaining third.

http://www.gold.org/supply-and-demand/demand/jewellery

http://www.gold.org/supply-and-demand/demand/technology

http://www.gold.org/supply-and-demand/demand/central-banks

http://www.gold.org/supply-and-demand/demand/investment

http://www.gold.org/gold-mining

M I N E P R O D U C T I O N : The sources of mine production have become as geographically diverse as gold demand. China was the largest producer in

the world in 2015, accounting for around 14% of total production. Asia as a whole produces 23% of all newly-mined gold. Central and South America produce

around 17% of the total, with North America supplying around 16%, around 19% of production comes from Africa and 14% from the CIS region.

P R O D U C E R H E D G I N G : There are times when gold producers will want to lock in a future price for their gold – for example, so that they can

ensure a return appropriate to their current production costs. The gold sold into the market adds to supply in the short term. It brings metal on to the active

market – and allows mining companies to sell metal ahead of their production schedules.

R E C Y C L E D G O L D : Because gold is virtually indestructible, all the gold ever mined still exists, apart from a small amount which has been lost. At

the end of 2015, there were 186 700 tons of stocks in existence above ground

It is recoverable from most of its uses and capable of being melted down, re-refined and reused. Recycled gold therefore plays an important part in the dynamics

of the gold market. While gold mine production is relatively inelastic (the development of the mining sector, shall contribute positively in increasing the stock

of produced Gold Bars), the gold recycling industry provides an easily-traded supply of gold when it is needed, thereby helping to stabilize the gold price. In all,

the demand of gold bars stand far above market supplies.

The studies taken a maximum of 90 days to complete, making it possible to apply for Exploitation license, making it possible to start the exploitation phases in

the Concession.

In Colomine, a jewelry production shop shall be created and sustained as part of the transformation & processing plant to be created there.

Research and develop six blocks of petroleum in Rio de Rey Basin (Bakassi East – 364.07 Km2, Bomana - 139.67 Km

2 &

Lungahe – 83.60 Km2), Douala Basin – Kribi-Campo (Etinde Exploration – 139.67 Km

2 & Elombo – 139.67 Km

2) and

Mamfe Basin (Manyu Block – 1 209 Km2), Total: 2 075.68 Km

2

In this domain, the Ministry of Mines, Industries and Technological Development has already written to us proposing that we start negotiations with SNH for

the signing of the Protocol for the purchase of 06 Petroleum Blocks as mentioned above. We have addressed a letter to SNH for the purchase of the said blocks

and waiting for their reply.

After some working sessions to that effect and while waiting for the formal reply, we were made to understand that the followings bills have to be paid:

financial deposits for each of the blocks and a tender file bought for each of the blocks.

http://www.gold.org/supply-and-demand/demand

http://www.gold.org/supply-and-demand/ups-and-downs-gold-recycling

http://www.gold.org/investment/interactive-gold-price-chart

http://www.gold.org/supply-and-demand/demand/jewellery

In conclusion, in addition to the exploitation of crude oil, four refineries shall be constructed in Mamfe (South West Region), Kribi (South Region), Bamusso

(South West Region) and Douala (Littoral Region) with ten deposits for refined petroleum products in (Mamfe – South West Region), Kumba (South West

Region), Douala (Littoral Region), Kribi (South Region), Bertoua (East Region), Bamenda (North West Region), Bafoussam (West Region), Ebolowa (South

Region) & Ngaoundere (North Regions)

Generally, the prices of Crude oil are presently very low but the price of refined petroleum is on the increase; refined petroleum products are on the increased.

Functioning as a guarantee base for long term loans, these six blocks in operation can generate enough funds to finance the entire projects of the corporation.

OPERATIONAL PROCEDURES:

Seller and Buyer confirm wiliness to trade in writing, that is, seller express in writing the quantity, quality and price, including periodic sale levels and

buyer also express in writing preparedness to buy and conditions to trade;

Buyer issue the Trading Instruments, Letters of Credit, addressed to Consultancy, Negotiations & Supplies Cameroon Incorporated, CONEGS-CMR

Inc) to be housed at Ecobank Cameroon SA;

On received of Letters of Credit, CONEGS-CMR Inc, shall request for a functional loan to cover expenses as presented in the Business Plan;

CONEGS-CMR Inc, shall open a functional office in Bamako, Mali to participate during the trading transactions;

Ecobank Cameroon SA, on signing of a protocol agreement and haven received the letters of credit, shall authorized Ecobank Mali SA to work with the

Technical Team put in place by buyer & seller, for smooth receiving and transferring of Purchase Gold Bars to Istanbul, Turkey and Yaounde,

Cameroon;

Technical & Administrative Team from CONEGS-CMR Inc shall visit the warehouses, including production houses of Afrik Gold and Diamond Sarl,

for quality and quantity control;

In the office of a Notary, accredited, the quality and quantity, including total monetary values shall be certified, after, the goods shall be deposited in

Ecobank Mali SA with a receipt of deposit issued with copies handed to the parties and a copy to Ecobank Cameroon SA;

Ecobank Cameroon SA, on received of the copy of deposits of Gold Bars, shall advise Ecobank Mali SA to take charges of payment of all fees needed

for the transfer of Gold Bars to Istanbul, Turkey; Ecobank Cameroon SA shall also issue the Letters of Credit, excluding the values of fees already paid;

On receiving of goods in Istanbul, Turkey by Buyer and approving the quality and quantity as mentioned in the Air Way Bills, five banking days,

maximum, seller shall discount letters of credit.

These operations shall be respected for the first year in operation, permitting partners to gain trust in the different operations.

9

MANAGEMENT OF PROJECT: TRADING ON GOLD BARS

DIRECT RESPONSABILITIES:

1) Managing Director:

Concern with the general orientation of the Corporation and implementation of the projects;

Only authorized person to commit the corporation with second and third parties;

Appoints representation to the different activities and operation of the corporation and projects;

Gives instructions and directives on the use of funds;

2) Administrator Central Administration

Oversee the day to day functioning of the activities of the Corporation and Projects;

Coordinates the implication of the different sectors and unit, directly and indirectly involves in the

implementation of the projects through supervision and control

3) Administrator, Sector I: Agricultural Development, Studies, Mining, Petroleum, Housing &

Infrastructural Development

Propose to through the Administrator, Central Administration to the Managing Director for

approval, the procedures to follow on quality and quantity control and quality of persons to

represent the corporation in this operation;

Follow through all reports to ensure that the quality and quantity do respect prescribed norms

4) Administrator, Unit I: Legal Unit

Participate in the conception of contracts, review established contracts, business contracts, review

internal rules and regulations;

Advise Managing Director on the signing and implementation of contracts;

Prepare contracts of employers and follow through the implementation of contracts, working closely

with the Human Resource Unit

5) Administrator, Unit II: Communication, Public Relations & Marketing Units

Put into place, the communication plan for the activity, ensure it is respected;

Put into place the marketing plan and ensured it is followed;

Working with the Administrator finance and social programs, shall produce the performance report

of the Project

6) Administrator, Finance Management and Social Programs

Work out the budget of the Project, analyzing the cost/revenue position of Project weekly, monthly,

semester and yearly;

Prepare pay vouchers for workers and all contract fees for payment;

Prepare payment of facilities and secondary/third parties, ensuring that all payments are made;

Prepare and defend audit reports.

Financial Management Systems

The Sectors concern:

Office of the Managing Director (Attachés and other support services)

Sector III: Finance Management and Social Programs

Sectors I, II & IV

Units I, II, III, IV & V

CONEGS-CMR Inc, B P 17613, ETETAK, Yaounde, Centre Region, Republic of Cameroon; EMAIL:

[email protected], www.conegs.com, www.afriminic.com, Tel: +237 673 337 414/699 839 715//660 756

106 * RCCM TPPRR/RC/LBE/2016/B/049 * CNPS: M110500047603R * BANKERS: UBA Plc, Afriland

First Bank SA, Ecobank Cameroon SA

10

Operational Procedures:

All Corporate cheques and all trading instruments or cash cover

documents/instruments shall be kept in the office of the Managing Director

The Managing Director shall be the only authorized person to approve all

expenditures, no matter the values, before being implemented.

Before approving any expenditure by the Managing Director, the Administrator of

Unit or Sector, in which the ongoing operations is being carried out most approve

of this expenditure.

Administrator of Sector III: Finance Management & Social Programs

Shall coordinate & control all financial transactions, working in close collaboration

with the Administrators of the other Sectors and Units

Ensure the payment of salaries and all contracts

Carryout, implement and manage all audit reports

The Managing Director, approval of all expenditures, working with the support services, shall

study the different fund requests and carryout all appropriate verifications before giving okay for

payment.

The Zonal Coordinators, working under the supervision of the Zonal Administrators, shall prepare

periodic reports on the state of activities in the different Zones. These reports shall explain the

state of execution of both budget and operations management

Petite Cash shall be managed at the level of the office of the Managing Director; only Sector

Administrators shall have Petite Cash, under the services of Junior Support Service (JSS) and

working in the Zones and not in Yaounde.

Contract Management:

All contracts shall be originated from the Budget Sub Sector, in the Finance Sector, following

budget planning

The Administrator of Sector, housing the contract, shall study the contract requirements; prepare a

technical report, addressed to the Managing Director.

The Support Service in the office of the Managing Director, working with the Maintenance &

Follow-Up Sector in preparing the Tender Documents for the contract.

On approval by the Managing Director, it shall return to the office of the Administrator of Sector

concern, which will now open the tender to the public.

The Maintenance & Follow-Up Sector and Zonal Team shall contribute in the management and

control of the implementation of the contract.

Credit & Bank Management & Control:

The Coordinator of Archives Management shall be the one to deposit cheques but not the one to

coordinate cash received from banks.

All cash movement from banks and financial houses shall be coordinated by the Administrator of





11

Finance & Social Programs.

B U D G E T A N A L Y S I S :

The project budget is analysed as follows:

Research and develop 5 000 KM2 land of Gold & Diamond Mining in the East Region of the

Republic of Cameroon, an area rich in Gold & Diamond & Purchase 12 610 KG of Gold

Bars, yearly, from Mali, selling all for year I, but as from year II, sell 50% and depositing

50% in local & foreign banks to function as guarantees for long term loans.

With regards from local exploitations, 75% of periodic production shall be deposited in

local and foreign banks while 25% shall be sold.

Four budget heads are attached to this cost/budget line. The following cost/budget line shall be analysed:

Payment of Concession cost and transfer/authorization to start working on Concession:

Here, the corporation shall deposit a guarantee of FCFA 350 Million; the additional taxes shall be paid

through the Artisanal & Semi-Industrial Exploitation. With receipt of this deposit, or 75% of this deposit,

Artisanal/Semi-Industrial Exploitation can start.

Carry out Studies: Geophysical, Geological, Geotechnical & Geo-economics, including the

hiring/equipping of office Spaces, hiring and training of human resources:

Following budget/cost analysis presented by the engineers of SOTOGENIC SARL, the project shall

requires FCFA 550 600 000.00, including three months salaries for project workers, excluding

construction and equipping of office spaces for the project sites.

With regards to information from the Human Resource Units of the different Subsidiaries to be involved

in this domain, FCFA 420 000 000.00 shall be needed to control and manage the activities for the first

year.

With information from INTELY SARL, FCFA 77 396 024.00, excluding cost of supervision, shall be

needed to update and construct offices in Yaounde and Colomine.

Total Budget for operations: FCFA 1 337 996 024

Revolving Letters of Credit for the Purchase/Marketing of Gold Bars, Letters of Credit for

the Purchase & Transportation of Equipment/Machines to Colomine

Letters of credit shall be required for the purchase and sale of Gold Bars:

For the Trial quantity of 970 Kg of Gold Bars: USD 31 040 000.00 (FCFA 18 624 000 000.00)

letters of credit shall be required.

For the monthly quantity of 500 Kg of Gold Bars: USD 16 000 000.00 (FCFA 9 600 000 000.00)

letters of credit, revolving monthly for 12 months shall be required.

These values shall exclude all charges, including taxes and stamps duties.

Total Budget for operations: FCFA 18 624 000 000.00





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Letters of credit shall be required for the purchase and transportation of Equipment/machines:

05 Excavators, 05 tippers, 04 D7 Caterpillars, 06 industrial crushers & 04 generators sets (KVA

150 – minimum)

Other operational needs

Total Budget for operations: FCFA 3 450 900 030

Research and develop six blocks of petroleum in Rio de Rey Basin (Bakassi East – 364.07

Km2, Bomana - 139.67 Km

2 & Lungahe – 83.60 Km

2), Douala Basin – Kribi-Campo

(Etinde Exploration – 139.67 Km2 & Elombo – 139.67 Km

2) and Mamfe Basin (Manyu

Block – 1 209 Km2)

FIRST YEAR

1. Field geological Survey.

2. Preparation and elaboration of geological maps for mineral prospection.

3. Stream sediment sampling of the different water courses.

4. Rock sampling using the GPS

5. Ground regional geochemical prospection.

6. Interpretation of the stratigraphy of the prospection zones.

7. Study of the correlation between the mineralization and the geological formations

8. Sampling of heavy mineral concentrates by panning

a. Approximate cost to carry out the work: 1 428 571.43 Euro

SECOND YEAR: Anomalies

9. Prospection of Petroleum deposits

10. Reconnaissance of anomalies in rocks

11. Interpretation of geochemical anomalies

12. Trenching and pitting of anomalies in the subsurface

13. Auger drilling

Approximate cost of operation: 1 190 476.19 Euro

THIRD YEAR: Evaluation

14. Geophysical prospection of the different anomalies

15. Drilling in order to evaluate the reserves of the Exploration Permit

16. Interpretation of the data and selection of promising zones for exploitation.

b. Approximate cost of operation: 1 031 746.03 Euro

Projected Budget of exploration for the first three years: Euro 3 650 793.65 (FCFA 2 394 920 630)





13

These values shall exclude financial deposits for each of the six blocks and buying of the tender files for

each of the six blocks, evaluated as follows: FCFA 1 600 000 000.00

Total Loan Value: FCFA 27 407 816 685.00

This value shall exclude annual interest on loan, bank charges, charges on letters of credit etc.

DURATION OF LOAN DISBURSEMENT: Within 45 Days

DURATION OF LOAN REPAYMENT: Within 05 Months

FUND PROVIDERS :

Ecobank Cameroon SA: FCFA 1 980 000 000.00 (50% of loan shall be used as

advanced payment for commissions and 50% to start off investments)

Istanbul Gold Refinery, Turkey & TT Dom, Belarus: USD 37 830 000.00

(through Letters of Credit)

LOAN GUARANTOR ON BEHALF OF PROJECT:

A land title shall be used to guarantee the loads: 13 hectare of land located within the Business

Sector of Yaounde (MOKOLO Business Centre), Republic of Cameroon, with a Metre Square,

currently, evaluated at FCFA 300 000.00 – Total Value: FCFA 39 000 000 000.00 (USD 65 326

633.17). A protocol Agreement is being worked out for the purchase of 10 hectares of the 13

hectares.

LOAN REPAYMENT:

The loan shall be repaid using returns from Sale of 50% of imported Gold Bars, 35% of Artisanal/Semi –

Industrial Exploitations from Colomine (East Region of Cameroon) & 25% advance payment of any of

the Six Petroleum Blocks to enter exploitation,

START OF OPERATIONS:

Start-up date: November 21st 2016 with conclusions transfer of Concession rights, through

the payment of Guarantee and opening of offices in the different project sites.

FUNDS GENERATION BY PROJECT:

Phase I: Sale of Gold Bars:

See the below tables for analysis

Phase II: Artisanal & Semi-Exploitation of Gold and Processing of Gold:

From February 1st 2017, 20 hectares of land shall be placed under Artisanal and Semi-exploitation, using

intensive machines, making it possible to get into heavy production by the end of the third month. in the

area,

O P E R A T I O N S M A N A G E M E N T :

The Gold Mining & Mineral Water Exploitation operations in the East Region, Republic of Cameroon

shall include Agriculture, Infrastructures/Tourism Development to function as additional sources of





14

income to the project. In addition to improving on the wellbeing of the workers, the wildlife project shall

project tourism and other social facilities.

The project shall construct housing, hospitals and schools, including recreation facilities like parks,

shopping mall in the area making life more affordable to workers and their families.

While the import and commercialization of Gold Bars shall be limited in Yaounde and foreign markets,

in Bertoua, East Region, Jewelry manufacturing plants shall be sustained for the production of high

density/concentrated gold chains.

The deposit of Gold Bars in Banks and the production and storage of Petroleum products and by-

products shall be used as guarantee for heavy and long term loans for the development the Agro-

Industrial and Infrastructural Development.

After completing payment for concessional rights and performing traditional rites, the project shall start

with Artisanal & Semi Industrial Mining on ten hectares of land, using 03 Excavators, 03 D7

Caterpillars, 03 Tippers and 02 Industrial Washing Machines. Under this level of operation, the output

shall be enough to cover cost.

The project is self-sustaining within the first six months in operations.





15

C A S H F L O W A N A L Y S I S

A ) : P R E - I N V E S T M E N T P R O G R A M & T I M E F R A M E A N A L Y S I S :


Duration of loan disbursement: 65 days

Table I: Loan Disbursement Program

S/N Operations Month: February/March/April 2017 (FCFA)

Total (FCFA)

01

Payment of concessional Rites to Gold

Label Mining Sarl, owner of Concession

'Colomine', payment of first deposit of

Land at Mokolo, Yaounde, change of

titles to the name of Administrator

Feb 1 - 17 Feb 20 - 28 Mar 13 - 31 Apr 10 - 28

30 000

000.00

180 000

000.00

30 000

000.00

///

20 000

000.00

///

20 000

000.00

///

280 000 000.0

02

Investment Charges:

Purchase of Assets from MGI

Partners CMR & Locals

(Colomine)

Depreciations allowance &

Taxes etc

15 000

000.00

8 000

000.00

6 000

000.00

6 000

000.00

35 000 000.00

03

Investment Charges:

Purchase & Hiring Generator

Sets from TRATAFRIQUE &

Others


Taxes etc

33 000

000.00

42 000

000.00

45 000

000.00

45 000

000.00

165 000

000.00

04

Investment Charges:

Purchase & Hiring Caterpillars

Sets from TRATAFRIQUE &

Others


Taxes etc

60 000

000.00

160 000

000.00

100 000

000.00

110 000

000.00

430 000

000.00





16

05

Investment Charges:

Rents & Upkeep of

administrative office

(Yaounde), including equipping

of office

Purchase & installation of

security equipment/materials


Taxes etc

20 000

000.00

20 000

000.00

30 000

000.00

35 000

000.00

105 000

000.00

06 Management Charges:

Labour charges including direct

& indirect charges

Purchase & transportation of

Gas, Fuel & Lubricants

Travelling charges to Mali &

Turkey, including hiring &

equipping offices in Mali

35 000

000.00

15 000

000.00

10 000

000.00

15 000

000.00

75 000 000.00

07

Management Charges:

Carry out Geophysical,

Geotechnical & Geo-economic

studies, including

environmental impact studies on

300 KM2 land in Colomine,

East Region to determine the

economic value of the available

minerals (Solid, liquid & dust)

For the production &

distribution of mineral water

25 000

000.00

20 000

000.00

10 000

000.00

15 000

000.00

70 000 000.00

08

Investment Charges:

Purchase & Maintenance of

Administrative & Field

Vehicles


Taxes etc

50 000

000.00

///

///

30 000

000.00

80 000 000.00

Grand Total

448 000

000.00

295 000

000.00

201 000

000.00

256 000

000.00

1 240 000

000.00





17

B ) : L O A N R E P A Y M E N T P R O G R A M :


Duration of loan repayment: 05 (Five) Months

Table II: Loan Repayment Program

S/

N

Operations Months - 2017: (FCFA)

01

Loan

repayment

schedule

August

September

October

November

December

Total

495 000

000.00

495 000

000.00

495 000

000.00

495 000

000.00

Interest and all

bank charges

1 980 000 000.00

Grand Total

495 000

000.00

495 000

000.00

495 000

000.00

98 000

000.00

///

1 980 000

000.00

(excluding interest &

bank charges)

NB: 50% of the loan value shall be deducted directly from payment of facilitators

C ) : I N C O M E G E N E R A T I O N

Total Quantity (Experimental): 970 Kg (Mali) + 500 Kg (Ghana): 1 470

Total Quantity (Minimum Monthly): Month I - 4 910 KG, Month II - 5 410 KG, Moth III - 5

910 KG & Month IV - 6 410 KG

Market Prices: USD 39 000.00/Kg

Table III: Revenue Generation from Sale of Gold Bars

S/N Operations 03 Months Sales:

01

Sale of

Gold Bars

January 2017

(1 470 Kg)

January to

March

2017

(4 910 Kg)

April

to June

2017

(5 410 Kg)

July to

September

2017

(5 910 Kg)

October to

December

2017

(6 410 Kg)

Total

(24 110 Kg)

USD 57 330

000

FCFA 34 226

010 000.00

USD 191

490 000.00

FCFA 114

319 530

000.00

USD 210

990 000.00

FCFA 125

961 030

000.00

USD 230 490

000.00

FCFA 137

602 530

000.00

USD 249 990

000.00

FCFA 149 244

030 000.00

USD 940 290

000.00

FCFA 561 353

130 000.00

NB: Gross Revenue, including revolving capital





18

C ) : B E N E F I T A N A L Y S I S - I: Payment of Facilitators Rights

Total Quantity (Experimental): 970 Kg

Total Quantity (Minimum Monthly): Month I - 3 410 KG, Month II - 3 910 KG, Moth III - 4

410 KG & Month IV - 4 910 KG


Table IV: Payment of Facilitators Rights


01

Payment to

Facilitators

- consult

attached

documents

for payment

analysis

January 2017

(970 Kg)

January to

March

2017

(1 500 Kg)

April to

June 2017

(1 500 Kg)

July to

September

2017

(1 500 Kg)

October to

December

2017

(1 500 Kg)

Total

(6 970 Kg)

USD 2 910

000.00

USD 4 500

000.00

USD 4 500

000.00

USD 4 500

000.00

USD 4 500

000.00

USD 20 910

000.00

NB: Sub Benefit on return to Net Profits Analysis

Total Contract Values: 24 110 Kg – USD 940 290 000.00

Total Projected Values to pay for Facilitation (24 110 Kg): USD 72 330 000.00

Payment to External Facilitation (03% of Total Contract Value): USD 8 154 900.00 (Analyze

monthly)

Total Payment to National Facilitators: USD 48 065 050.00 (pay after every three months, except

for trial quantity in the month of January 2017 – March 2017, June 2017, September 2017 and

December 2017)

Total payment to facilitators: USD 56 219 950.00

Gross benefit recovered from specific sector: USD 16 110 050.00

Total Loan values: USD 2 077 051.93

Net benefit recovered: USD 14 032 998.07

T R A D I N G S U M M A R Y :

Trial Quantities: 970 Kg + 500 Kg: 1 470 Kg

Three Monthly Revolving Quantities: Month I - 3 410 KG, Month II - 3 910 KG, Moth III - 4

410 KG & Month IV - 4 910 KG

Yearly Projected Quantities: 24 110 KG (this value is only from Mali & Ghana, excluding

Tanzania, Central African Republic and the Congo Brazzaville.

Principal Partner: Istanbul Gold Refinery - Turkey, facilitated by TT DOM, Belarus.

Type of Trading Instrument: Revolving & Fully Functional Letters of Credit, Value on site,

Transferable, Divisible, Irrevocable – Issued or backed by one or many of the first 50 world classed Banks.





19

Value of Trading Instrument: USD 37 830 000.00 – revolving many times/year, goal here is to trade on

many transactions as possible for the first year.

D ) : B E N E F I T A N A L Y S I S - II: Budget Management (Salaries, Short & Medium Term

Investments)

Total Quantity (Experimental): 970 Kg (Mali) + 500 Kg (Ghana): 1 470 Kg


910 KG & Month IV - 6 410 KG


Table V: Budget Management (Salaries, Short & Medium Term Investments)


01

Budget

Management

Salaries

Short &

Medium term

Investments

(Purchase of

land etc)

January

2017

(1 470 Kg)

January to

March

2017

(4 910 Kg)

April

to June

2017

(5 410 Kg)

July to

September

2017

(5 910 Kg)

October to

December

2017

(6 410 Kg)

Total

(24 110 Kg)

USD 1 470

000.00

USD 4 910

000.00

USD 5 410

000.00

USD 5 910

000.00

USD 6 410

000.00

USD 24 110

000.00

D ) : B E N E F I T A N A L Y S I S - III: Budget Management (Long Term Investments, Payment

Of Taxes & Interest & Bank Charges)

Total Quantity (Experimental): 970 Kg (Mali) + 500 Kg (Ghana): 1 470 Kg


910 KG & Month IV - 6 410 KG






20

Table VI: Budget Management (Long Term Investments, Payment of Taxes & Interest & Bank

Charges)


01

Budget

Management

Taxes

Bank charges

Long term

Investments

(Purchase of

light/heavy

investments etc)

January

2017

(1 470 Kg)

January to

March 2017

(4 910 Kg)

April

to June

2017

(5 410 Kg)

July to

September

2017

(5 910 Kg)

October to

December

2017

(6 410 Kg)

Total

(24 110 Kg)

USD 2 940

000.00

USD 9 820

000.00

USD 10 820

000.00

USD 11 820

000.00

USD 12 820

000.00

USD 48 220

000.00

D ) : B E N E F I T A N A L Y S I S - IV: Budget Management (Net Investment - Invest in

Petroleum Development & Management)

Total Quantity (Experimental): 970 Kg (Mali) + 500 Kg (Ghana): 1 470


910 KG & Month IV - 6 410 KG


Table VII: Budget Management (Net Investment - Invest in - Petroleum Development & Management)


01

Budget

Management

Salaries

Short &

Medium term

Investments

(Purchase of

land etc)

January

2017

(1 470 Kg)

January to

March

2017

(4 910 Kg)

April

to June

2017

(5 410 Kg)

July to

September

2017

(5 910 Kg)

October to

December

2017

(6 410 Kg)

Total

(24 110 Kg)

USD 1 470

000.00

USD 4 910

000.00

USD 5 410

000.00

USD 5 910

000.00

USD 6 410

000.00

USD 24 110

000.00

NB:

At the end of year I, the project will generate Gross benefit of USD 96 440 000.00

Additional USD 14 032 998.07, shall be raised through the corporation participating as facilitator

Total Gross Benefits: USD 110 472 998.07

From an analysis stand point, from year two, the corporation shall generate Stand By Letters of

credit to be used for trading – USD 70 000 000.00

Payment of first two installments for the 18 hectares of land at Moloko, Yaounde: USD 26 130

653.53





21

Develop and sustain an entertainment club on two hectares of land at the heart of the business

community in Yaounde: USD 5 600 000.00 (Including salaries, construction cost, equipment etc)

Net Operating Budget: USD 15 843 594.54

I N V E S T M E N T P L A N

Complete studies on 15 0000 Km2 land for minerals exploration (Liquid, Solid and Dust) and

acquire exploitation licenses on minerals exploitation (Liquid, Solid and Dust), in the National

Territory, including Livestock development and farming.

Carry out intensive agro-industrial programs (on 10 million hectares), capable to supply

food to the growing population in the mining regions and create additional sources of

income for the corporation

Create a high source of milk production, storage and distribution with destination to cities

and foreign markets, including mineral waters with an adaptable price and distribution

pattern

Carry out Mechanized Industrial mining on Gold & Diamond in the area, including

Petroleum exploitation and other minerals discovered in the area.

Acquire the first six petroleum blocks and complete exploration and start exploiting Petroleum

by-products

Develop and sustain an entertainment club on two (02) hectares of land at the heart of the

business community in Yaounde, including a modern open green snack, nightclub etc

Purchase of land and developing a shopping mall on three (03) hectares of land within the

Mokolo Business Centre, Yaounde, Centre Region

Purchase of land and developing a modern five (05) star hotel of international standards on three

(03) hectares of land within the Mokolo Business Centre, Yaounde, Centre Region

Purchase of land and developing a modern high standard housing units on four (04) hectares of

land within the Mokolo Business Centre, Yaounde, Centre Region

Purchase of land and developing a modern high standard and multi-specialized hospital units on

two (02) hectares of land within the Mokolo Business Centre, Yaounde, Centre Region

Purchase of land and developing a modern high standard office blocks, including the

administrative head office of the corporation on ten (10) hectares of land within the Bastos

neighbourhood, Yaounde, Centre Region

Research, develop and sustain mineral water production, storage and distribution.

Agro-Industrial Investments, covering 19 500 000 hectares, excluding 10 million hectares of

cereals cultivation in the Grand North Regions, giving a total of 29 500 000 hectares





22

C R E A T E A N D S U S T A I N A P L A T F O R M F O R F U N D S

G E N E R A T I O N & M A N A G E M E N T

T Y P E O F P L A T F O R M :

Crowdfunding

P U R P O S E :

Generating Funds for the financing of Private Multi-Sector Projects in the Republic of Cameroon

A M O U N T O F I N V E S T M E N T F U N D S R E Q U I R E D :

Euro 1 296 241 768 562.74 USD 1 424 346 063 948.34

(Representing marketable shares open for sale at values prescribed below)

D U R A T I O N O F F U N D S G E N E R A T I O N :

20 (Twenty) Years

P R I N C I P A L O F F I C E S :

Yaounde, Centre Region & Buea, South West Region, Republic of Cameroon

A D D R E S S :

B P 17613, ETETAK, Yaounde, Centre Region, Republic of Cameroon;

EMAIL: [email protected], [email protected]

www.conegs.com,

Tel: +237 673 337 414

S U P P O R T O F F I C E S :

Douala – Cameroon, Cape Town – South Africa, Lagos – Nigeria, London – Britain, Frankfurt –

Germany, Moscow – Russia, Hong Kong, Brazil, Canada, New York – USA (These support offices shall

be established gradually as the activities mature)

C O M P O S I T I O N O F T E A M

Secretariat Staff: Head of secretariat: 01 (Start-up salary, excluding Health Insurance &

Transportation – Euro 13 000.00/Month – Annual: Euro 156 000.00)

Translators/Interpreters (Start-up salary, excluding Health Insurance &

Transportation – Euro 11 000.00/Month/employee – Monthly Total: Euro 209 000.00

Annual: Euro 2 508 000.00)

Spanish: 02

Portuguese: 02

English: 02

German: 02

mailto:[email protected]

http://www.conegs.com/





23

Chinese: 02

French: 02

Russian: 02

Others: 05

Platform Team Leader (Office in Yaounde, Cameroon): 01

Platform Administrators (Managers): 05

Experts of Project Development, Evaluation & Management: 03

Chartered Accountants: 03

Financial Experts: 03

Lobbyists/Facilitators: 05

Petroleum Experts: 02

Mineral Experts: 02

Legal Experts: 05

Expert Negotiators: 05

(Start-up salary, excluding Health Insurance & Transportation – Euro 14 500.00/Month/employee –

Monthly Total: Euro 493 000.00 Annual: Euro 5 916 000.00)

Total Labour (Direct): 54 (Annual Salary: Euro 8 580 000.00 – direct salary)

D O M A I N O F I N V E S T M E N T S :

Agro-Industrial Projects, including Housing & Infrastructural Development, leading to the

development & sustainability of:

29 500 000 Hectares of land for Agricultural & Industrial development, including 10

million hectares of land for maize & soya beans cultivation in the Grand North Regions,

04 million hectares for orchard management, 05 million hectares for Cocoa cultivation, 03

million hectares for wildlife management/ranching, 03.5 million hectares for forest

regeneration/wildlife management, 05 million hectares for Rubber cultivation etc

(See Technical Documents, for detailed description, composition and analysis)

Ten Agro-Industrial Villages etc

(See Technical Documents that follows, for detailed description, composition and analysis)

Developing and tarring 980 Km of farm to market roads etc


Petroleum Management: Acquiring five thousand (5 000) Km2 concessions for petroleum

exploration, exploitation, refinery, storage and transportation of petroleum by-products; construct,

equip and sustain three (03) Refineries in Bamusso Area (South West Region), Mamfe (South

West Region) and Kribi (South Region), after carrying out Geological, Geo-Technical, Geo-

Economic and Environmental impact Assessment Studies






24

Mining: Acquiring 10 000 Km2 concessions for minerals exploitation, starting with Artisanal

Mining, Semi & Industrial Mining, after carrying out Geological, Geo-Technical, Geo-Economic

and Environmental impact Assessment Studies


Transport & Tourism: Create and sustain Intra-Urban, Inter-Urban, Maritime and Air transport

Network in the republic of Cameroon, connecting West & Central African Countries, including

cargo transportation Networks.


Artefacts collection & management and Entertainment


Create & Sustain Investment Financial Institutions with 80% of investment capital measured

in Gold and Diamond


Trading on Precious Minerals (Solid and Dust): Trading on Gold Bars, purchased from Ghana,

Mali, Tanzania etc, including production in Cameroon and trading in Europe, Hong Kong, USA,

Canada etc.


Conceive, Develop & Sustain Twenty-Two (22) Satellite Villages in all the ten (10) Regions of

the Republic of Cameroon


I N C E N T I V E S T O I N V E S T O R S :

Transform Investment capitals into shareholdings in the above listed investment domains with annual

payback dividends

Actual Projected Values of Shares: Euro 656 320.00/Unit

Propose Saleable Values of Shares: Euro 459 424.00/Unit (minimum shareholding of 100 units,

pay over a period of seven (07) years – an average of Euro 6 563 200.00/year)

Reduction Values of Shares: 30% (Could be increased up to 40%, depending on the volume of

prescribed shares and up paid values of prescribed shares)

Total Saleable (Marketable) Units: 2 851 923 Units disposed, constituting 75% of the total

values of corporate shares

Maturity period of investments: 08 years (Maximum)

O P E R A T I O N S T O P E R F O R M B E F O R E S T A R T O F A C T I V I T I E S :

Acquire all concessional rites for Mining and Petroleum with 2017

Acquire all agricultural lands between 2017 and 2026 (29 500 000 hectares – 295 000 000 000

M2 – FCFA 16 225 000 000 000.00 – Euro 24.74 Billion shall be needed to acquire the lands,





25

including the values of registration & notarization of lands, lobbying, performing of traditional

rites & acts, other charges and transfer of land certificates to project owners); start investment

in Mining, Petroleum and Agro-Industrial programs within same period

Sign all protocol agreement with government and partners between 2017 and 2018.

P L A T F O R M M A N A G E M E N T : A N A L Y S I S O F S H A R E H O L D I N G S

1): Purchase of Land for Agro-Industrial Programs, including land for Satellite Villages:

Land Required: Hectares: 29 500 000.00 M2: 295 000 000 000.00

Purchase of land (Average): FCFA 25/M2 – FCFA 7 375 Billion – Euro 12 Billion

Registration & Notarization of Land: FCFA 30/M2 – FCFA 8 850 Billion – Euro

14 Billion

Total: Euro 26 Billion – 56 593 Share Units to be sold

(See Technical Documents Attached, including Business Plans &

Implementation Plans)

2): Primary Activities for Agro-Industrial Programs, before start of Crop Culture & Management:

Total Investment Budget: Euro 357 762 678 707.87 – 778 721 Share Units to be

sold

(See Technical Documents Attached, including Business Plans & Implementation Plans)

3): Purchase of Industrial Equipment & Machines, Vehicles (Light & Heavy) etc


sold


4): Yearly Operational Budget etc


sold


5): Crop Culture, development & Management, including Industrialization, Commercialization etc

Total Investment Budget: Euro 165.00 Billion – 359 146 Share Units to be sold

6): Studies, case of Satellite Villages (Environmental Impact Assessment Studies, Geotechnical Studies)


sold

7): Conception & Realization of Architectural Designs, including legalization & Registration of

Architectural Designs and Building Plans etc

Total Investment Budget: Euro 1 792 292 133.69 – 3 902 Share Units to be sold





26


8): Layout of Satellite Villages, including construction of Access Roads, Principal Roads etc


sold


9): Conception, Development and Institutionalization of Social Facilities etc


sold


10): Construction, Finishing and Sustaining of Housing Units, including Quality Control of Construction

Materials and Construction Works

Total Investment Budget: Euro 576 864 438 987.61 – 1 255 626 Share Units to

be sold
