The Offer & Investor Returns
Two instruments, one mandatory
- Tranche 1 — Equity, $700,000. Deployed first: the risk capital that reopens the property and reaches profitability.
- Tranche 2 — Convertible standby, up to $1,640,000. Committed for Phases 2 and 3, drawn only if operating cash is insufficient, converting to equity at a cap if and when drawn. In the base model only ~$505,000 is called.
Entry — priced on the asset today
Entry is priced on the value of the asset today, at a pre-money of about $2.62M (its invested / book value, confirmed by the SUNARP-registered valuation; negotiable toward the ~$4.6M intact-replacement floor). It is deliberately not priced on the post-restart DCF — that is value the new capital helps create. On that basis the $700k equity buys ~21% of the project.
Returns (if the projections hold; pro-forma after the standby converts and dilutes)
The position is ~21% before conversion, ~19% after. With a 50% dividend payout from 2030 and an exit at the 2031 stabilized EBITDA on a 6× multiple, the $700k equity returns about:
| Metric | Value |
|---|---|
| Entry pre-money | $2.62M |
| Stake | ~21% (→ ~19% post-conversion) |
| MOIC | ~4.2× |
| IRR | ~24% |
Indicative convertible terms — cap ~$7.6M, 20% discount, shareholder-loan or offshore-SPV structure — are to be finalized with counsel.
Approval
The raise exceeds the $500,000 annual fundraising cap in the shareholders' resolution and therefore requires a two-thirds Assembly approval (a Reserved Matter).
⬇ Download the financial model (XLSX) · Forward-looking figures are management estimates; the convertible cap/discount are indicative and subject to a final term sheet. Confidential.