Eco Metals Recovery

8 BUSINESS MODEL ▲ It is EMR’s intention to licence the manufacturing of The Separator product globally.We aim to have secured licensees within three years of funding in 50% of the top mining jurisdictions of the world. It is anticipated that these jurisdictions will be Canada, the US, South Africa and Australasia. ▲ EMR plan to complete total global licensing in three to five years, but it is anticipated that numerous licences will be agreed quickly in the most competitive jurisdictions in major western mining countries. ▲ EMR will generate revenue from licence fees, royalty and eventual sales income when the commercial roller manufacturing facility is in place. Overheads will be minimal, and can probably be staffed (once licencing agreements have been finalised place) by approximately ten people. ▲ EMR will consequently become a company that acts a Licensor. All the ‘hard’ activity will be the manufacture of The Separator equipment , which will be undertaken by the licensees. ▲ EMR has already mapped the mining equipment sectors main players, and has strong relationships with a number of the key decision makers in these organisations ▲ EMR eventually plans to establish a separate, but wholly owned subsidiary company that will function as a manufacturing plant. This facility will manufacture the roller components of The Separator, and EMR will receive revenue from this company in the form of royalties from sales of The Separator's replacement rollers. ▲ At the current stage of business and product development, final pricing structures are still being defined. Our logic is that The Separator and its rollers will be priced according to what value the product will be to the miners themselves, and not as a piece of equipment. The product will be based on how much EMR can increase these companies’ profitability, meaning that margins will be high, with no competitors. ▲ Consequently, Separator pricing will be fluid, as the technology will be produced at many different levels and sizes. Following commissioned market research, EMR will use pricing for value, and not necessarily product completion