While doing research on an upcoming presentation, I was surprised to learn that “KGHM AJAX INC” has already spent $27 million since the company was formed in June 2010.

Try to follow the breadcrumbs, it took me a while to get it figured out.

Abacus formed KGHM Ajax and transferred all it’s mineral rights to the project for 49% share of the company.  KGHM International bought 51% of KGHM Ajax for $37M, this money was paid to KGHM Ajax. (Page 8 of the following report)

As of Sept 30, 2014 KGHM Ajax has $10M cash left, but also $9M in liabilities(page 11 of the following report).

2014-Q3-FS

 

That means that more than $27M has already been spent!

 

But that is just a drop in the bucket of the money that will be spent.  According to this document there will be almost $800M required as an initial investment, and according to this document 37% of that will be spent in Kamloops.

 

In summary $296M spent in Kamloops will certainly bolster the economy, and $40M/year thereafter in wages paid will support a sustained increase in house prices and rents, both good for Kamloops real estate investors.

 

I thought this was an interesting fact, and wanted to share it.

 

Until next time,

 

Stay S.A.F.E.

 

PS

 

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