From the press and the media

Jacob Engel expands in Africa; prospects for gold in Ghana too

Exclusive: the company that purchased 500,000m2 gold deposits in Ghana should produce some 50 thousand ounces annually
By Michael Rochwerger
14.04.2011 the marker

The Marker has learnt that Elenilto Co., part of Jacob Engel's private group Engelinvest, purchased gold deposits in the Shanti region in the north of Ghana, on a 500,000m2 areas. Elenilto will initially invest in completing the exploration and drilling works that should continue until late 2011 and mining should begin in early 2012.

The transaction will take place in cooperation with local land owners who will receive a commission of 12.5% of the profits in return for the franchise. Elenilto's equity invested in these gold deposits is estimated at tens of millions of dollars. Ghana is known for its high-quality gold deposits in which gold concentration is considered particularly high compared to other regions in Africa.
Initially, the company expects to produce 50 thousand ounces annually, so assuming the price of gold remains at its present price of $1,400 per ounce, revenue is expected to total $70 million annually. The company has a franchise for a 20-year period, and if the price of gold remains at its present level the company is expected to enjoy revenue totaling one billion dollars over this period.
Elenilto's new operation in Ghana comes in addition to operation of copper and gold mines in Tanzania. Elenilto's flagship project are three iron ore mines in Liberia, under advanced development stages, with a 25 year franchise, containing some 5 billion tons of iron ore.

Elenilto will begin production in late 2011 and intends to gradually reach production of 25 million tons of iron ore to be sold mainly to the Chinese and Indian markets. The project in Liberia will be finance by an international banking consortium and an issue on the London or Toronto stock exchange, known to specialize in the mining industry. Engel began to prepare the issue for the Liberian operation on the London or Toronto stock exchange at a value of hundreds of millions of dollar.

Engel is partner to one of the largest exits on the Israeli real-estate market in recent years, after selling the Lagana Holdings Group to Shaya Boimelgreen's Azorim for $100 million and at a huge profit.