Advanced Explorations Inc. ADEXF

Metals & Mining Industrial Metals & Minerals

"Advanced Explorations Inc is a development stage company. It is engaged in the acquisition, exploration and development of properties within the resource sector."

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Advanced Explorations Inc.

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Comment by Kadillacon Mar 22, 2011 11:19pm

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Post# 18325778

RE: RE: RE: VENMan, RB deal

Venman,

XinXing does not get the product for free. This is how it works in simple terms:

A new company is formed - Lets call it "Newco". Newco is owned 50% by AEI and 50% by XinXing.....

If Newco produces and sells 3 million tonnes, the financials will be like this:

Sales - 3 million tonnes at $160/tonne = 480 million

Cost of Raw Material - 4 mill @ $60/tonne = 240 million
Royalty (if there is one) = 4% of Sales (480 million) = 19.2 million

Total profit before other costs = $220.8 million.....

AEI's share = 50% = $110.4 million annual profit.......
XinXing's Share = $110.4 million

The interest free loan for capital costs would be paid out of AEI's and XinXing's profits......

Hope that helps,

Kadillac