Lynch Mining, LLC
Business Plan
GOLD YOU CAN HOLD®
Submitted to:
Angel Investor Candidate
Submitted by:
Lynch Mining
Rhett Lynch
Business Plan
Natural Gold Paydirt | Gold Nuggets | Gold Flakes
Offering
Lynch Mining (
https://www.lynchmining.com) is looking for an investor that wants to be part of a rapidly growing company to provide short-term financing. The funds will be used to fulfill orders as we expand new product lines - adding gold and silver coins and gold bars that have higher profit margins than paydirt.
Lynch Mining (LM) has developed a client list of more than 30,000 clients that purchase paydirt to mine gold flakes and nuggets. In January 2023, Lynch Mining launched LM Bullion (
https://lm-bullion.com), generating a large number of orders.
Investment
Lynch Mining is seeking $2,989,000. During the pandemic, the equipment required to make the gold coins and gold bars was delayed by 18 months. Upon arrival, the equipment had to be re-wired to interface with U.S. electrical outlets.
The equipment is now up and running. However, the company is in a cash crunch. Funds will be utilized for 3 purposes:
- Eliminating overhead costs $1,489,000.00
- Workforce Expansion $500,000.00
- Raw materials (Precious Metals) in the amount of $1,000,000.00
TERMS
Option 1: IRR
For an investor that is looking for a royalty agreement, Lynch Mining is willing to provide an internal rate of return (IRR) based on a dollar amount or percentage of each sale.
Option 2: ROI
For an investor that is looking for a large payout, Lynch Mining is willing to provide an equity position in the company of 20%-30%. In 2023, Lynch Mining sales exceeded $2,000,000 with only two employees.
EXIT STRATEGY
We recognize that each investor has a different goal. Some investors are looking for a monthly, quarterly, or annual income similar to dividend income. Other investors are looking for a big payout when the stakeholders sell the company or go public.
Our goal is a win-win scenario where the investor receives either a 25% or greater return on their money annually or receives a payout in the next 2-5 years that provides a multiple of their investment.
Business History
Lynch Mining is an industry leader in gold paydirt, gold nuggets, and gold flakes online sales at LynchMining.com.
Lynch Mining began seven years ago with the simple goal to provide the most reputable gold paydirt on earth. Founded by Rhett Lynch, Lynch Mining guarantees gold in every bag and bucket of gold.
Rhett leases gold mines that have stopped mining in Arizona. These mines no longer produce large quantities of gold, but the mine entrails provide nuggets and flakes. In addition to the natural gold flakes and nuggets that randomly show up in the dirt, Rhett adds the minimum guarantee amount. This business model established Lynch Mining as an industry leader.
ORIGINAL PRODUCTS
- Gold paydirt
- Gold flakes
- Gold nuggets
Gold Paydirt: Gold paydirt is a special type of dirt that contains real natural gold flakes and gold nuggets. Gold prospectors and miners from all over the world are still risking their lives and have been for centuries in search of high-quality gold paydirt.
Gold Flakes: Gold flakes are found in paydirt by prospecting the paydirt, a process of separating the gold from the dirt to eliminate the dirt and keep the gold and precious minerals.
Gold Nuggets: Gold nuggets are naturally occurring lumps of native gold found in residual deposits as opposed to gold-bearing veins or lodes which are weathered. Nuggets are more common in the tailings of piles of previous mining operations, e.g. gold mining dredges.
NEW PRODUCTS
All coins and bars are graded and certified.
Gold and Silver Coins: Coins are sold in ½ oz and 1-oz weight
Gold Bars: Gold bars are sold in 1-gram, 5-grams, 10-grams, 20-oz, and 1-kilo sizes/weights.
Entity Structure
Lynch Mining LLC is owned 100% by Rhett Holden Lynch.
Lynch Mining History
Lynch Mining struggled for the first few years to penetrate the market. Much of Rhett’s time was taken up negotiating gold mine lease agreements, creating an online store, mining, packaging, and selling the paydirt.
THE FOUNDATION
The first product offered was gold paydirt. In 2018, Rhett began attending industry trade shows and connecting with gold wholesalers to get better pricing on gold flakes and introductions to prospectors. These contacts established the business foundation.
That year Rhett created an online portal on Shopify. This turned out to be a significant business move, as the platform has integrated all of the business tools needed to run the business, including analytics, and SEO tools for better ranking on search engines, merchant services, and inventory management. Shopify also integrates with the US Postal Service and UPS for package tracking and customer notifications.
Increased Revenue
In 2019, the business took off. Sales revenue went from $24,000/year to exceed $600,000. Gold paydirt sales rose steadily and revenue increased as Rhett added gold flakes to the product line.
In 2020, Rhett continued to market to existing customers, continued to build top ranking on search engines, and added gold nuggets. Gold Nuggets increased its revenue and Lynch Mining is on track to exceed $1,000,000 in annual revenue.
Need for a New Facility
Lynch Mining currently operates out of a 7,000 sq ft manufacturing facility in Queen Creek, AZ.
The facility is situated on 3.58 acres and has two main structures:
- Residential house (approx. 4,500 sq ft)
- Commercial building (approx. 7,000 sq ft)
CURRENT DEBT
Lynch Mining is profitable. Just before the pandemic, LM took out an SBA loan to finance a manufacturing facility and to purchase equipment to manufacture gold coins and gold bars. The equipment was manufactured in China. During the pandemic, the equipment was delayed by 18 months. Upon arrival, the equipment had to be rewired to interface with U.S. electrical outlets. Paying for equipment upfront put a large financial strain on the company, resulting in taking out hard money loans to cash flow the company until LM Bullion production cash flowed the company.
In January 2023, Lynch Mining hired a debt consolidation company to negotiate payoff terms for all hard money loans. This has allowed the company to start cash flow again.
In February 2023, LM Bullion began production of silver coins, gold coins, and gold bars.
$1,489,000 SBA Loan
$ 195,000 Hard Money loans
+ ---------------------------------
$1,684,000 Total debt
Use of Funds
$ 1,489,000 Eliminating Overhead Costs
$ 500,000 Workforce Expansion
$ 1,000,000 Raw Materials (Precious Metals)
+ ------------------------------------------------------
$ 2,989,000 Total Use of Funds