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).
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,
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