Investor Presentaiton
Eritrea Mining Act & Alpha Agreement with ENAMCO
ALPHA
EXPLORATION
The Eritrean Mining Act is based on the West Australian Mining Act and has
been upheld in a fair and consistent manner by the Government, resulting in
more Mine development in Eritrea than any other country in the region over
the past 20 years.
Exploration license (EL):
3 year term, 2 renewals for 1 year each. 25% relinquishment of
original license area with each renewal.
The Licensing Authority may allow further renewal periods where the licensee
documents the necessity for additional advanced exploration activity or provides
information on other circumstances which justify an extension for the duration of the
license.
50km2 maximum size.
• License fee (US)$100, annual rental (US)$13.30/km².
Mining license:
. Maximum of 20 years or life of deposit (whichever is shorter), renewable for 10 years.
10km² maximum size.
• License fee is (US)$400, annual rental is (US)$40/km².
Royalties:
5% for precious metals and 3.5% for other metallic minerals.
Taxes:
• Corporate income tax 38%.
.
·
20% flat tax on expatriate employee earnings.
0.5% on all imports of machinery equipment, vehicles and parts.
No dividend tax.
• Straight line depreciation over 4 years with no salvage.
•
The right to carry forward operational losses and deduct them from gross incomes is
guaranteed.
Government (ENAMCO) Participation:
• 10% free carry and has the option of an equity participation not exceeding 30%.
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The agreement between Alpha Exploration
and the Eritrean National Mining Corporation
(ENAMCO) protects and clarifies Alpha's
interests for all parties... in the case of a
discovery.
Agreement between Alpha Exploration Eritrea
Limited and ENAMCO:
On the 9th January 2018, Alpha signed a
'Memorandum of Understanding' with the
Eritrean National Mining Corporation (ENAMCO)
on ENAMCO's terms for involvement with Alpha
in the Kerkasha Exploration License.
ENAMCO has right to 10% free-carried interest
in any mining Project that is developed on
Kerkasha.
ENAMCO also has right to:
•
•
Purchase a further 30% 'Participating Interest'
in Kerkasha at any time from commencement
of exploration, up to 3 months after completion
of a Bankable Feasibility Study (BFS).
To purchase their Participating Interest, ENAMCO
will pay the equivalent percentage cost of
exploration, up to point of acquiring
their Participating Interest.
• Thereafter, ENAMCO will contribute the same
Participating Interest percentage of all costs
going forward.View entire presentation