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.
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.
I'll ask the really stupid question here, but did you acquire the mineral rights or the mineral rights and the land?
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.
@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.
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...
@Jay Hinrichs Thanks we're gonna need all the luck we can get.
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