EastBridge Investment Corp (OTC-BB: EBIG), a financial services company that helps companies list on U.S. exchanges, client Long Whole Enterprises, which is similar to companies like Geovic Mining Corp (OTC-BB: GVCM) and Alumina Limited (NYSE: AWC), could see significant profits in Congo.
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With mining disputes and conflicts commonplace in Congo, it may seem a wonder to many investors that any companies operate in the country. That is, until investors hear that the small country is estimated to have some $24 trillion in untapped deposits of raw mineral ores, including the world’s largest deposits of cobalt and significant quantities of diamonds, gold and copper.
Most of this mining is accomplished via small operations known as “Artisanal and Small-Scale Mining” (ASM), which remains unregulated in the Democratic Republic of the Congo (DRC.) However, an increasing amount of money is now being invested abroad to extract and refine some of the ores found in the country. And some of this work is being done by companies that growth investors should watch closely…
Long Whole Enterprises Targets Huge Gold Reserves
EastBridge Investment Corp (OTC-BB: EBIG), a financial services company that provides companies with access to U.S. capital markets in exchange for a 10-20% equity stake, counts Long Whole Enterprises as one of its clients. Currently, this undiscovered company is working diligently to complete its survey of a potentially enormous gold mine in the DRC.
With soil samples on the way to the lab right now, according to EastBridge management, and a potential IPO on U.S. exchanges within the next nine months, growth investors seeking to capitalize on this opportunity may want to pick up some shares of EBIG in anticipation of a potential IPO to unlock value.
Larger Companies Face Hurdles, Smaller Companies Profit
While the Congolese government works to eliminate rebel factions in the eastern provinces, some companies are continuing to face difficulty within the country. For example, the government recently decided to liquidate First Quantum Minerals Kolwezi copper project, while U.S. copper miner Freeport-McMoRan is still waiting to make the largest international investment in Congo after years of talks.
Ultimately, this has posed a problem for larger companies looking to take a big slice of the Congolese pie, but smaller companies capable of rolling under-the-radar can often profit substantially. Meanwhile, government efforts to eliminate corruption and improve the business environment in the country could ultimately create M&A opportunities for those smaller players already established.
With $24 trillion in natural resources within its borders, Congo represents an enormous untapped opportunity for investors. While conflicts and corruption have kept larger companies at bay, smaller companies operating under-the-radar may be able to realize significant profits. As a result, growth investors may want to take a look at EastBridge Investment Corp (OTC-BB: EBIG) as a diversified way to gain exposure to this lucrative market.