Business Partnership Proposal

Business Partnership Proposal

Author: C. Tarupiwa (MD)

INTERESTED INVESTOR: Business Partnership Proposal

Well, I do propose a partnership in a Business Venture that involves diamonds purchasing, selling, cutting and polishing.

We are a small company involved in precious minerals dealership with a bias towards diamond cutting, polishing and all the marketing related to that industry.

We envisage someone or a company to be a partner with a 40% stake which would cost USD200 000 – subject to further reasonable negotiations. Payments can be staggered over an agreed period of time. The money will be used to buy cutting and polishing machinery in South Africa.

Alternatively the investor can
a) bring in machinery and equipment, the cost of which translate into shareholing in the company or
b) a loan. Under the loan option we propose that 50% of profits would go towards servicing of the loan and interest until it’s paid off. Interest will be paid at 110% of prevailing government bond rates.

Advantages
i) The Diamond Industry is still in its infancy in Zimbabwe and those of us who have a far reaching foresight can have the advantage of low entry costs into the industry at this point in time.

ii) Diamonds sometimes are bought for speculative purposes with reasonable high returns over a single purchase.

iii) Licensed buyers in this country are allowed to buy diamonds whenever Government does an auction.

iv) Diamonds are bought cheap in Zimbabwe, going by past records of sales vs volumes sold. Once bought here they fetch very high prices in the international market.

v) With a license one can buy diamonds and travel with them to any country with no legal hassles.

vi) Cutting and polishing also adds value to diamonds, creates employment and as our company thrust is in that direction, we are assured of government support.

You will not part with your money until your equity in our company is legally endorsed through an attorney of your choice.

Well, we hope it’s a venture that is exciting and rewarding – and why not- diamonds are forever.

I hope we could constructively sit down and put more insight into this very plausible and mutually beneficial partnership. We envision a partner we can grow together with.

General Business Plan:

Aim; – To establish a company that can be a competitive player in the diamond industry, first in Zimbabwe and the sub-region, then globally.

Priority area; – Cutting and polishing, the general marketing of diamonds and related by-products, including rough diamonds.

Background; – The Zimbabwe Diamond industry is still in its infancy and hence initial development stages. One realises The beneficiation and value addition sector has full government support, hence less hurdles and riddles.

Zimbabwe, it is believed, owns 25% of world diamond reserves, according to current world geological information. As a result, one envisages a bright future in respect of this industry. If one were a serious long term investor, then, this is one area where sustainable growth in both equity and returns can be assured.

Mustrite Investments Pvt Ltd was given is in view of a Precious Minerals Dealership License. The license is fully paid up 31/12/2011 and is renewable every year.We are authorised to buy diamonds from local diamond miners through either;
a) government run and KPCS supervised auctions/tenders or
b)through a special allocation of 10% set aside for local companies.

General Strategic Plan:
A – Get a partner who can contribute USD200 000 capital injection to allow operational take off. The partner would in turn be entitled to a 40% stake or equity in the company.
B – We appreciate we are going through a learning curve as a country and more so as indigenous players. We gradually intend to create employment through value addition. I honestly used the term gradually, because one has to grow in the industry. The idea that one
can work up and suddenly find they have a big diamond cutting, polishing and processing factory with a 100 machine benches etc sounds rather dreamy. We believe in working towards growth and partnering in order to forge strength.

C – Establish a Diamond market database. The database will seek to capture and establish a market clientele base. Without an established market, one can have all the Diamonds in the world and still not know who or where to sell.

Well, that somehow near explains our future in short. A partner’s contribution in terms of a better vision will enable us the foothold we so seriously require to start beneficiating from one of Zimbabwe’s most precious resource. We do seriously believe in mutual benefit and growth with any serious partner/ investor.
Yours sincerely

C. Tarupiwa (MD)
Email: c-tarupiwa@operamail.com OR Cell: +263772948005