large corporate companies, they do not extend themselves to take supply side risk. On the other hand the miners being new do not have the banking support to collateralize on payment instruments when they sign contracts with steel mills. This leave many miners seeking high and low for bridge funding (purchase order funding) to service contracts. As they understand the risk and management of these deals, they are in a unique position to profit from these transactions provided they can provide the purchase order funding. By supporting the miner they can offer a full service deal structure for the end buyers, similar to then they buy from large mining companies.

This involves their company taking the Letter of Credit from the end buyer and processing it, to extend an LC to the miner, an LC to the shipping company and then control all payments based on delivery of tested and cleared minerals to a free trade zone where they can take title to the product in smaller volumes while paying the miner based on smaller volumes delivered. This provides oxygen to the miner and allow them to work with us to manage the delivery of large contractual volumes that they otherwise would not be able to service. Once they have 90% of the minerals under their name they call the vessel which implies a 20% mobilization fee. Once the vessel is loaded, they can claim the buyers full LC. This purchase order funding approach can generate 10 to 30 USD/MT depending on mineral type. Based on 35,000 to 100,000 MT per month resulting in revenues streams in excess of 350,000 USD/shipment.