“We have a mining right..”

In my 6 years looking for mininng deals, I have seen my fair share of pitches that go like this: "We have a Mining Right and we want R5 million."

When you dig deeper, there is no resource statement. No yellow equipment. No operator. Just a permit and a dream of flipping it for quick cash. The vast number of permit holders (especially in coal) are not serious business people, just gamblers. Maybe they have friends at the Witbank DMRE who helped them secure a mining license and now they are looking for a gullible buyer. Of course, no serious investor will entertain such a "buyout" pitch.

At Transvaal VC, we do not invest in paper. We invest in Operators.

We use a Revenue-Based Financing (RBF) model that is designed for people who actually move dirt, not wishful thinking.

Here is how we invest in junior mining operators:

1. We Take "Top Line," Not Bottom Line. We take a percentage of Gross Revenue. Why? Because I don't want to argue about your expense line items or operational inefficiencies. If you sell the rock, we get paid. Simple. This keeps us aligned: We both want maximum production volume.

2. The "Cap" is the Goal. We aren't trying to own your company forever. We aim for a capped return (typically 2x plus MOIC depending on the risk profile of the deal). Once we hit that number, we step back. You keep your equity. You keep your mine.

3. Operators Only. If you are an entrepreneur with boots on the ground and a machine that needs diesel, let's talk. If you are a permit holder looking for a handout to "unlock value" without lifting a shovel, keep walking.

Going into 2026 we have opened ourselves for partnerships with other investors, LPs, and family offices looking for collaboration in projects that are anchored in reality and valid numbers.

The future of African mining belongs to the operators and resource investors, not speculators.