Does anyone have experience with minerals investing? Recently acquired land with 500m valuation in inventory. (No clue where to start)

[Jai Sookhakitch]

Hey there bp!

I recently acquired a group of parcel's just outside of Seattle Washington. The land was formerly zoned m and with a expensive study done by a geologist we have determined it sits on 500m USD worth of high grade rock. Given that I have no clue where to begin, I'm debating liquidating to an experienced mining company or somehow facilitating the deal myself. Essentially it's a value add project 4 parcels. If any one has any suggestions or experience I'm open to hearing what you have to say. 

Feel free to reply or message me direct.

[Seth C.]

It seems like you are asking whether you should work as an RE investor or open a mining company as a passive partner (sorry if I misunderstood). I am currently in a busy rock mining area, and even the smallest operation requires a significant amount of heavy machinery, I am sure that size would require no less than 10M. I doubt it would be as passive as you think, and it is a long term commitment. Thus I think it has no value to anyone but an experienced mining company.

Another play would be to try to lease for a base price plus a percentage of gross. You could try for 5-6%, but I would personally be very happy with 3-4%. Realistically, 1-2% sounds like about what you would get. Now I am pulling in those numbers from a completely different industry, so you would need to find someone from the field who knows more than I do.

[Troy Fisher]

I'll ask the really stupid question here, but did you acquire the mineral rights or the mineral rights and the land?

[Jay Hinrichs]

@Jai Sookhakitch

permitting such a thing will be your biggest challenge.. most large quaries are owned these days by national type corporations that have millions and time it takes to get these permitted. 

[Jai Sookhakitch]

@Seth C. I like the idea of leasing, I'm just trying to get an idea from fellow investors to maximize my yield. 

@Troy Fisher Yes I talked with title company mineral rights are still active.

@Jay Hinrichs I agree, there is going to be lots of red tape. That's what happened to the original owners. They didn't have enough money to complete. 

What I may do is just flip it quickly to a mining company. I would even let it be contingent on the mine/quarry being approved.  Given that, if anyone has any leads, I'd share in on the profits.

[Jay Hinrichs]

@Jai Sookhakitch

  approvals could be many years into the future... Not often a prime mine site is bought by middle men like it appears you or your group is.

good luck with it.. was a very risky play in mind...

[Jai Sookhakitch]

@Jay Hinrichs Thanks we're gonna need all the luck we can get.

[Jay Hinrichs]

good luck on it....just going by what experience's I have had in the NW...

You should send me the legal descriptions let me take a look at it.

how many acre's  there could be other revenue generating items you may not be aware of