Strategic Overview


Phase 1 – Portfolio Acquisition

Over it first five years, TAB-Forest has acquired 100+ quality gold mining concessions, including 15 large scale concessions (up to 80+ square kilometers each). In addition, the company owns/controls over 300,000 metric tons of rich gold tailings ready for processing, with access to much more. With respect to property acquisition, Phase 1 is substantially complete (although new deals are evaluated regularly).

Also, because of the broad scope and scale of the national initiatives, a great deal of coordination with key stakeholders in Ghana has occurred and is ongoing, including federal, regional and local governmental entities,   the Ghana National Association of Small Scale Miners (“GNASSM”), the Ghana Supply Company Limited (“GSCL”), the Precious Minerals Marketing Company Limited (“PMMC”), mining industry suppliers, banking partners and many others.

Phase 2a – Develop Small Scale Alluvial Gold Mines on TAB-Forest Properties

Phase 2a involves developing small scale alluvial gold mines on TAB-Forest’s portfolio of gold mining concessions. The government of Ghana reserves mining concessions of 25 acres or less for Ghanaian citizens and companies like TAB-Forest, which is majority Ghanaian-owned. Each property is a separate joint venture investment (“JV500”) created and managed by International Resource Group. As an exclusive strategic partner, it is International Resource Group’s role to create, fund and manage these joint ventures by gathering groups of investors from around the world to invest in the projects. In practice, this phase will continue for the foreseeable future. Development of these small scale properties over time will create an ever-expanding cash flow for the company and investors.

In addition, TAB-Forest’s medium term plans involve developing a network of tailings processing plants to service gold miners around the country (discussed below), and short term plans include processing the owned and controlled tailings (300,000+ metric tons) at a facility operated by a large, publicly traded miner already active in Ghana.

Phase 2a began in earnest in late 2015 and represents a key shift for the company. In addition to the minor mining activities occurring previously, the company has enacted one small scale JV with U.S. investors, which is operational. The company is now seeking investors to substantially increase the number of small scale mines in production. Each project takes approximately 90 days to mobilize on the site. Investment capital is raised strictly pursuant to U.S. Securities & Exchange Commission guidelines via Private Placement Memorandum and Subscription. Any consideration to such an investment should be made after thorough study of the Private Placement Memorandum.

Returns for the JV500 model are extraordinarily high at this early stage of the opportunity. Revenue from gold mining operations will be used to: 1) pay operational costs, 2) provide returns to investors, and 3) build a “gold bank” that will serve to provide a reserve of gold to ensure investor payouts. As the model matures, returns will likely decrease as risk subsides.

Phase 2b – Develop Small Scale Alluvial Gold Mines in Association with the 600+ Member Miners of the Ghana National Small Scale Miners Association

Phase 2b involves developing hundreds of small scale alluvial gold mines on concessions owned/controlled by the 600+ member miners of the GNASSM. TAB-Forest Mines and International Resource Group have executed a Memorandum of Understanding to create a national partnership with the GNASSM, the Ghana federal government, regional and local governments, PMMC, major banks, industry vendors and suppliers, and other key stakeholders to bring an entirely new business model on a national scale to Ghana’s gold mining sector. What you are about to read is truly exciting.

Currently, the gold mining industry in Ghana is vast, yet somewhat disorganized. There is little capital for needed equipment, mined gold is often sold at discount prices via illegal avenues (thus avoiding taxation), and environmentally unfriendly practices prevail and no land reclamation occurs.

TAB-Forest conceived the creation of the Capital and Regularization for Mining Activities Company (“CARMA”) and Ghana stakeholders are excited about its prospects. CARMA is designed to deliver needed capital (funded by investors from around the globe) and to regularize small scale mining activities within Ghana.

             


CARMA is an operating entity that will provide a comprehensive set of programs to assist Ghana’s small scale mining community with capital formation and the logistical framework to streamline this underutilized industry. Program goals include:
  • Source and deploy significant new capital to fund small scale mining expansion,
  • Maximize the exploitation of gold resources,
  • Curtail illegal activities,
  • Strengthen the regulatory framework and enforcement,
  • Enhance job creation and economic benefits,
  • Provide fair benefit back to the mining communities, and
  • Prevent the destruction of farms and the pollution of lands and river bodies.


While CARMA as a company will be responsible to implement the initiative, other key stakeholders are closely involved. CARMA will be advised by a five member Advisory Board, consisting of representatives from CARMA, the GNASSM, the federal Environmental Protection Agency, the Ghana financial community, and the minerals industry.

Program Beneficiaries (GNASSM members) must meet and maintain strict program requirements, including adhering to the rules and regulations governing mining, maintaining a valid mineral mining license, being a member in good standing of the GNASSM, maintaining a sound financial condition, providing valid mining concessions with geologically proven gold reserves, mining utilizing environmentally friendly practices, and reclaiming the land utilizing funds from the Reclamation Fund established by the program.

The investment capital raised by CARMA will be allocated on a flexible and customized basis based on a needs assessment of each Beneficiary conducted by CARMA, the GNASSM and the larger Advisory Board in collaboration with the Beneficiary. Through the CARMA programs, Beneficiaries will be able to access needed capital for equipment and general working capital. Repayment will be in the form of mined gold and will be sufficient to provide an array of benefits, including the actual costs related to providing the equipment/capital, Advisory Board and GNASSM operational costs, the Reclamation Fund, returns to capital providers, and amounts sufficient for program continuation. As the price of gold can fluctuate, program terms will provide for risk and reward sharing among the parties in the case of large price swings.

Program Beneficiaries will be able to sell their gold at favorable market prices to CARMA by delivery to the Precious Minerals Marketing Company (“PMMC”) regional offices, avoiding sales through unauthorized channels and providing maximum revenue to the miner, CARMA, federal and local tax coffers, and other stakeholders. The amount of gold flowing through CARMA will be substantial.

CARMA will establish relationships and contracts with program vendors to provide reasonably priced services to Beneficiaries in the areas of banking, minerals testing, equipment procurement, equipment service and maintenance, fuels and lubricants, secure transportation, refining services, reclamation services, and specified other operational services. The amount of service contracts flowing through CARMA will be substantial as well.

Pursuant to a Memorandum of Understanding between the University of Mines and Technology (“UMaT”), the GNASSM will help coordinate the assignment and activities of professionals from UMaT to assist each Beneficiary in its business, including strategic planning, mining operations and training.

Federal and local governments will also play an active role in the initiative.

By design, the CARMA program can be a transformational undertaking that can significantly impact the mining industry, job creation, federal and local tax collections, and social and environmental progress. Diligent work is underway to create and implement the program. Interested investors should contact us to learn more.

Phase 3 – Develop Large Scale Alluvial and Hard Rock Mines

As TAB-Forest grows in all respects, focus will expand to JVs of a larger magnitude to develop its portfolio of 15 high quality large scale alluvial and hard rock mines, all located in the renowned Ahafo region. Next steps will include the work involved for a third party to produce NI 43-101 reports to accurately classify the mineral deposits. Investors interested in participation in a large scale project are encouraged to contact International Resource Group.

Non-Mining Related Projects – Tailings Processing Plants

Ghana, formerly The Gold Coast, is a country with vast gold deposits. With a total land area about the size of the U.S. state of Michigan, Ghana is the 10th largest producer of gold, behind such massive countries as China, Australia, Russia, the U.S. and Canada.

For decades upon decades, the country’s artisan and small mining companies have use low-tech mining techniques to unearth enough gold to keep remote villages and these small companies alive. However, these low-tech mining methods leave up to 80% of the gold content in the dirt after the first, and only, pass by these techniques. What is left above ground are “tailings”, or massive mounds and areas of mined material that is now above ground, in many cases rich with gold, and abandoned.

While there are a few tailings processing plants in Ghana, many are not suitable or available to process the available tailings. Furthermore, the capital required to move the stockpiles and process the gold is simply not available.

TAB-Forest plans to build a network of approximately eight tailings processing plants around the country to leverage these above ground stockpiles, and to offer the 600+ small scale miners a program to unlock the massive gold reserves already unearthed. Others can transport the tailings to the facilities or TAB-Forest will provide the means to transport the material. Fees for processing (a portion of the processed gold) will be commensurate with the services involved.

Much of the due diligence is complete for the first plant, including working with local officials on siting and land use. Each Heap Leaching Plant is budgeted to cost just over $2 million, which includes land, soft costs, construction hard costs, Heap Leaching Plant, FF&E, working capital, supplies, and small contingency.

Vital to our commitment to social and environmental responsibility, the environmentally friendly Gold Ore Dressing Agent is a new high-tech product used in gold benefaction as the substitute for sodium cyanide and is the only patented product for “environmentally friendly gold extraction” around the world. The product, used in gold production directly as the substitute for sodium cyanide without changing the original process and equipment, enjoys advantages such as low toxicity, environmental protection, high recovery, good stability, convenient operation, quick recycle, low dosage, low cost and convenient storage and transportation. It is one of TAB-Forest’s goals to be the leader in eliminating toxic mining methods from Ghana, and the stakeholders in Ghana are fully on board.

Preliminarily, it is estimated that each plant will process approximately 100,000 metric tons per year with gross revenue from gold output of approximately USD$10 million at today’s gold prices.

While not the highest priority on the list as of now, with capital investment, the first plant could be operational within a few months. Again, contact International Resource Group to discuss this initiative.

Non-Mining Related Projects – Total Logistics Center in Takoradi-Oil City of Ghana

Sekondi-Takoradi, a city comprising the twin cities of Sekondi and Takoradi, is the capital of Sekondi-Takoradi Metropolitan District and the Western Region of Ghana. Sekondi-Takoradi is Ghana’s fourth largest city and the region’s largest city with a population of 445,205 people (2012). Takoradi is also a port city and an industrial and commercial center.

The chief industries in Sekondi-Takoradi are timber, cocoa processing, plywood, shipbuilding, harbor and railway repair, and recently, oil. Sekondi-Takoradi lies on the main railway lines to Kumasi and Accra. Over the years it has attracted a good number of investors, including miners, as the city is close to the mining towns in the western part of Ghana. (Source: Wikipedia.)

The burgeoning oil industry in the area has led to the need for major infrastructure enhancements in the region. Recognizing this need, in December 2015 the Ghana Supply Company Limited (“GSCL”) awarded TAB-Forest Mines the rights to develop the ~USD$150 million Total Logistics Center in Takoradi-Oil City of Ghana. The project will be a public-private partnership (30% owned by the federal government of Ghana) developed via a Build-Operate-Transfer model with a 30-40 year term. The ~67 acre site is being contributed by GSCL.

Project feasibility studies are nearing completion and preliminary project components include:

  1. Phase I
    1. 40,000 SF Open Warehouse/Storage
    2. 15,000 SF Garage (Workshop, Lube Bay, Tire Service Center)
    3. 300 car Parking Lot
    4. Land allocation for future expansion
  2. Phase II
    1. 18 hole Golf Course
    2. Tennis Courts
    3. Polo Grounds
    4. Race Course
    5. 20,000 SF Aircraft Hanger and Helipad
    6. 20,000 SF Medical Clinic
    7. 250,000 SF Shopping Mall
    8. 40,000 SF Office and Conference Space
    9. 1,500 seat Football Field and Basketball Court
    10. Parking
  3. Phase III
    1. 300 key Hotel
    2. 300 unit Residential Facility
    3. Parking

Funding negotiations are in process. Once funded, the results of the feasibility studies will serve as a guide for the development team and the design team to solidify plans for this important project. Phase I of the project is expected to be operational within two years of initial funding. Interested investors should contact International Resource Group.