Jintai Mining (NASDAQ:JTT)

WEB NEWS

IPO Activity

Jintai Mining set to commence IPO.

Company Snapshot:

Vertically integrated mining company

Industry Snapshot:

Use Of proceeds:

We will use the net proceeds from this offering as follows:

$2,000,000 for existing mine safety improvements, expansion and rehabilitation. We shall rehabilitate up to four (4) channels or tunnels into the Ore Mine and improve current ventilation, drainage and slagging shaft. The improvements should improve our working environment and increase operating efficiencies.
$6,000,000 to explore and develop our existing Exploration Rights Properties. Our goal is to become a leading fully integrated developer and operator in our province. This capital injection should accelerate our initiatives into meeting this objective.
$17,000,000 for plant expansion and new construction. $3,000,000 shall immediately be utilized to expand production capacity and construct a new concentrator to include additional ores and the remaining $14,000,000 is designated to construct a new smelter facility and the technological developments associated with this construction endeavor. The remaining $1,500,000 will be held in a trust set up with Bank of America, to be used solely as payment of expenses related to the Company being a public company.

Underwriter: Maxim Group, LLC.

Proposed offering price: $4.00 to $6.00

Post IPO Share Calculation:

GeoTeam® best effort calculation of total post IPO shares assuming full conversions: 44,300,000

Financial Snapshot:

Net revenues for the year ended March 31, 2010 were $35 million, representing a $11.2 million or 47% increase compared to $23.8 million in 2009. The increase in net revenues is mainly attributable to the increase in our profit margin.
Net income for the year ended March 31, 2010 was $12.78 million, an increase of 96% or $6.27 million compared to $6.51 million for 2009