SOURCES AND USES OF FUNDS
| SOURCE OF FUNDS | ||
|---|---|---|
| Common Stock Purchase (Investor) | $100,000 | |
| $ 6,000,000 Note Payable to Investor | 4,750,000 | |
| Total Sources of Funds | $4,850,000 | |
| Uses of Funds (Year 1 – Prototype Development and Validation): | ||
| Corporate and LLC formation and meetings – travel | 18,000 | |
| Legal review, LLC and Corporate Formation | 20,000 | |
| Consulting Fee for Investment Marketing (Nome Gold Corporation) | 250,000 | |
| Escrow set-up and closure | 2,000 | |
| Total Initial Uses of Funds | $ (290,000) | |
| Prototype Development Uses: | ||
| Terra Sonic International – Sonic Drill and Components: | ||
| TSi 150CC Compact Crawler Rig | $610,000 | |
| APHS (auto pipe handling sys with track mod) | 60,000 | |
| Adapter, TSi Head Flange to TSi Spindle x 2 | 3,000 | |
| Rod (4.25”OD x 3.75”ID), 600’ w/6”x 4.25” spindle | 57,000 | |
| 8” Core Barrel x 3 | 5,000 | |
| 8” Core Barrel Bits x 10 | 6,000 | |
| 4.25” x 8” Core Barrel Adaptor x 4 | 6,000 | |
| Casing (9.25”OD x 8.4”ID x 10’) x 600’ | 112,000 | |
| 9.25” Casing Shoe Bits x 10 | 6,000 | |
| 6” x 9.25” Casing Adaptors x 3 | 5,000 | |
| Sonic Crew Special Training (3 weeks) | 30,000 | |
| Trucking – to Grants Pass, Oregon | 100,000 | |
| Total Sonic Rig Investment | (1,000,000) | |
| Research and Development (e.g. Eductor Rod Couplings, Adaptor Vanes, Jetting Sub-Couplings, Heat Manifold,Manufacturing, Engineering, Professional Services | (400,000) | |
| Processing Plant and Ancillary Equipment: | ||
| Jet Pump with Driver and Pump Smart VFD with Accessories (e.g. Platform and Conduit) | 330,000 | |
| Processor (e.g. Centrifugal Concentrator, Pumps, Backfill Apparatus, Conduit) | 300,000 | |
| Grinder (e.g. 30tph) of Slurry | 20,000 | |
| Water Filtration Unit (e.g. Bonchar, Zeolite) | 50,000 | |
| Gold Room (e.g. MSI 255 Shaking Table / 755 Enhancer with Facility/RV, Security) | 100,000 | |
| Reservoir (e.g. Tank, Dam, Pump, Well Structures, Well Pump) | 100,000 | |
| Total Processing Plant and Equipment | (900,000) | |
| Subtotal “Uses” | (2,590,000) | |
| Other Equipment: | ||
| Scientific Analysis Technology: | ||
| XRF Hand-Held Spectrometer, Training, Data Collection Software, Core Holders, Validity Fees | $50,000 | |
| Seismic and/or LIDAR integration | 60,000 | |
| Other | 40,000 | |
| Total | (150,000) | |
| Heavy Equipment: | ||
| Rental of Heavy Equipment when needed | 20,000 | |
| Morooka with Trailer/crane for Rods, Casing, Tools and Equipment | 130,000 | |
| Total | (150,000) | |
| Facilities and Transportation: | ||
| RV Living Quarters x 2 | 50,000 | |
| ATV’s x 2 | 8,000 | |
| Haul Trailers x 2 | 30,000 | |
| Containers x 2 | 12,000 | |
| Other | 30,000 | |
| Total Facilities and Transportation | (130,000) | |
| Administration, Supplies, Permits, Insurance, Payroll (Annual Expense): | ||
| Payroll $4,000 ea. including tax x 3 x 12 months | 144,000 | |
| Sonic Driller Wages $6,000 including tax x 1 x 12 months | 72,000 | |
| Officer’s Wages $6,000 including tax x 1 x 12 months | 72,000 | |
| Project Manager Wages $6,000 including tax x 1 x 12 months | 72,000 | |
| Insurance plus Workmen’s Comp | 70,000 | |
| Fuel (variable) | 50,000 | |
| Rent | 25,000 | |
| Other | 25,000 | |
| Total Annual Administration and Other | (530,000) | |
| Total Cash Uses for Prototype Development and Validation – Year 1 | (3,550,000) | |
| Cash Sources Available for Beta Conversion and Exploration – Year 2 (See Page 3) | $1,300,000 | |
NOTE: Total cash required for Prototype Development and validation is $3,550,000. This amount needs to be placed in a bank account available for Corporate use. The balance $1,300,000 will be placed in an interest bearing account requiring two signatures subject to conditional use to continue exploration and gold production.
| Sources of Funds – Beta Exploration and Alpha Conversion (Year 2)- Three Hi-Value Target Properties. | ||
|---|---|---|
| Cash Available after Proof of Prototype | $1,300,000 | |
| Uses of Funds – Five Months with One Month Working Capital for Alpha Conversion: | ||
| Additional Equipment Requirements | $(100,000) | |
| Site Evaluation and Preparation: | ||
| Legal Contracts (Hydro-Mining Properties, LLC) | $30,000 | |
| Pre-site Evaluation – Professional Fees | 50,000 | |
| Site Historical Research | 15,000 | |
| Travel | 30,000 | |
| Total | (125,000) | |
| Site Preparation and Set-up: | ||
| Advance Crew with Preparation – to site | 30,000 | |
| Drill Rig, Special Sampling Equip – Transportation | 120,000 | |
| Total | (150,000) | |
| Beta Drilling: | ||
| Direct Costs –fuel, labor, maintenance x 5 months | 500,000 | |
| Sample Analysis | 60,000 | |
| Offsite Sample Analysis | 60,000 | |
| Evaluation for Alpha Conversion | 10,000 | |
| Other | 40,000 | |
| Total | (670,000) | |
| Alpha Conversion: | ||
| One month Working Capital Requirement | 100,000 | |
| Processing Equipment – Transportation | 35,000 | |
| Community Involvement: | ||
| Security (one month) | 5,000 | |
| Reclamation, replanting contracts | 5,000 | |
| Food concessions | 5,000 | |
| Community promotions, environmental concerns | 5,000 | |
| Permitting, legal review | 5,000 | |
| Other | 40,000 | |
| Total | (200,000) | |
| Total Cash Uses for Beta Exploration and Alpha Conversion Year 2 | (1,245,000) | |
| Cash Sources Available for Contingencies | $55,000 | |
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