Sitlab Mineral Sarl

Investment Proposal
 • Sitlab Minerals Sarl is looking for investors to help setup and
operate several gold refineries in the Democratic Republic of
Congo.

• DRC is one of the gold richest countries in the world with

estimated reserves of $24 trillion ($24,000 billion).

• As of today, there are a few industrial mines operated by

international firms, but most gold is extracted by artisanal
miners who sell their gold to middlemen who smuggle the gold
to Uganda, Rwanda, Burundi, Kenya and Tanzania, and on to
Introduction the Middle East.

• Artisanal mining is very dangerous as a consequence of

individuals mining of their own accord. There is no regulation
and child labour is common although it is prohibited by law.

• Sitlab Minerals Sarl is well connected in Congo and has set up

MOUs with a number of cooperatives in Eastern DRC to source
raw gold.

• We will return some of the profits back into the community

through a fund that will invest into local infrastructure
projects (hospitals, schools, paying kids to to attend school).

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 Vision
• Create a legal gold refinery business across multiple sites in
DRC and establish recognised DRC gold bullion for export to
international markets.

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 1. 95% of the gold mined in east and central Africa reaches Dubai
through middle men - the illicit trade in gold mined in the
Democratic Republic of Congo (DRC)

Problem 2. Communities are exploited as they have no official channels

to sell their gold other than to middle men

Statement 3. There is no official gold export in DRC of standard grade gold

and ESG certification

4. Poor working conditions, child exploitation, corruption,

extortion

Confidential
 1. Establish a legal business in DRC to
1. Buy artisanal mined gold from local cooperatives
2. Mint global standard 24k (999.9) gold bullion
3. Export legally from DRC to international markets
2. Establish long-term sourcing contracts with local cooperatives to
1. Create legal framework for gold trading
2. Guarantee fair purchase price for raw gold
3. Legalise and eliminate cash transactions

Solution 3. Create DRC gold export standard

1. Obtain gold refinery license
2. Obtain gold export license
3. Create internationally recognised bullion hallmark
4. Create global awareness in cooperation with international
gold consultancies
4. Standards
1. Establish environmental, social and governance (ESG)
certification for artisanal mined gold in the region
2. Provide employment and education locally

Confidential
 Site 1 - Phase 1 (2023)
• Signing contracts with cooperatives for raw gold supply –
in progress
• Set up Sitlab Minerals SARL in DRC - in progress
• Source land for refinery - done
• Legalized land title – in progress
• Obtain gold refinery license – in progress
• Obtain gold export license – in progress

High level • Raising project funding – in progress

• Discuss with DRC Treasury purchase plan – in progress

roadmap Site 1 - Phase 2 (2023/24)

• Purchase refinery equipment
• Build gold refinery building
• Install refinery equipment and training
Site 1 - Phase 3 (2024)
• Start operations
• Purchase and refining of raw gold
• Sale of fine gold bullion to DRC Treasury and international
buyers
• Start planning for setting up Site 2 (2024/25)

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 Size of market
• DR Congo’s Annual Gold Production was reported at 43,000
tonnes in Dec 2020
• About 95% of extracted raw gold is illegally exported and
minted in Dubai

Market Size of opportunity

• Initial target is processing 5kg of raw gold daily per site,

Opportunity / increasing to 10kg per day

Cash flow

Revenue • Initial investment required for 1st site is USD 7.15m

• Further sites will be financed through 1st site cashflow
• Turnover is about 1t of fine gold annually, ~USD 8.5m in
revenue per site (@ $60k/kg)
EBITA
• USD 4.7m per site annually @ 5kg raw gold per day
Return of funds
• Share in Equity and dividends

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 • There is currently no direct competitor refining raw gold into
bullion inside DRC for export within the targeted operating
location.
• There are three organisations that operate in the wider
vicinity.
• In 2017, African Gold Refinery (AGR) was opened in
Kampala (Uganda) benefitting from smuggled Congolese
gold. The company has been sanctioned by USA and EU.
• In 2021, Aldango started production in Kigali Special
Economic Zone (Rwanda). Rwanada doesn’t produce any
Competitors gold and is reliant on Congolese gold, however the current
political tension in the area is impacting the supply.
• In 2023, Congo Gold Raffinerie (CGR) started production in
Bukavu (South Kivu, DRC). The area has traditionally
smuggled unrefined raw gold from DRC to Rwanda and
Uganda en route to Dubai.
• Considering the volume of artisanal gold production in the
eastern region of DRC, there is large demand for a local gold
refinery.
• There is ample support from government to establish
processing capabilities in the country and create employment.

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 • Sitlab would like to start operation with setting up a gold
refinery in the Baraka/Fizi area to provide cooperatives a safe
way to sell their members’ gold for purification (24K – 999.9),
guaranteeing a fair price and reinvesting a percentage of the
proceeds back into the local infrastructure.

• Our hallmarked gold bullion bars will be sold locally to the

DRC Treasury / Central Bank and for export to international
dealers.

• The cash flow from the first refinery will finance the setup of

Proposal
5 further refineries in the country.

• We will be working with international firms to set up ESG

certification and aim to develop a blockchain to trace the gold
from source to end user, facilitating trading, supply chain
management, settlement and custody of gold. We are working
in partnership with a precious metals consultancy in London.

• It is estimated that the annual artisanal gold production in

DRC is about 20 tons per year. We estimate that each refinery
can process about 1.0 tons per year of refined gold.

• Revenue per site is $8m per year with operating costs of $3.6m
annually.

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 Investment ask – Site 1 Year 1

Equipment $ 1,800,000

Vehicles & Equipment $ 350,000

• To set up operations to start refining raw gold into
fine gold bullion an investment in the region of
USD 7m is required. Buildings $ 1,700,000

• It is expected that it will take 12 months to build Management & Admin $ 1,000,000
the compound and install the refinery equipment.
Staff & Security $ 800,000
• Additional sites will be financed through cash flow
from Site 1.
Operational Costs $ 1,500,000

Sum $ 7,150,000

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 DRC Gold Refinery Project
Financials – Site 1 $90,000,000

$80,000,000

$70,000,000

Revenues $60,000,000

• USD 8.4m per year (@ 5kg/day) $50,000,000

Axis Title
Operating costs $40,000,000

$30,000,000
• USD 3.6m per year
$20,000,000
Revenue stream
$10,000,000
• Local: DRC Treasury / Central Bank (50%)
$-
• Export: International Dealers and Mints Year Year Year Year Year Year Year Year Year Year
(50%) $(10,000,000) 1 2 3 4 5 6 7 8 9 10
Cumulative Revenue Cumulative Costs
Cumulative Retained Profits Cumulative Net Present Value

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 Proposed sites
Site 5

Site 2
• Precious metal assaying, refining, Site 3
smelting, bar manufacturing,
hallmarking, bullion transport and Site 4
export
Site 6
• Sitlab Mineral will establish several Site 1
sites in DRC to serve the sprawling
artisanal gold mining industry.

Site 1 (2023): Baraka

Site 2 (2024): Bunia
Site 3 (2025): Kisangani
Site 4 (2026): Goma
Site 5 (2027): Isiro
Site 6 (2028): Kindu

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