International Equity Development & Merchant Banking

International Equity Development & Merchant Banking
Capitalizing On Opportunities In Global Markets For Absolute Risk Adjusted Returns

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  • Javalon, S.A. is an international equity development company focusing the identification, Acquisition and Growth of a series of global Platform Development Companies seeking out opportunities in the sectors of Natural Resources and Technology & InterMedia.

    Javalon, S.A. management team has access to the highest caliber transactions on a global basis and a demonstrated ability to recognize and capitalize quickly on true opportunities.
  • Javalon, S.A. is an international equity development company and global merchant bank seeking to identify, acquire and manage its current Platform Development Companies which seek to achieve outsized, risk-adjusted returns by leveraging a global infrastructure and a diverse team of highly experienced professionals to access and monetize unique global opportunities in the Natural Resource and Technology & InterMedia sectors.

    See Platform Developments for more information
  • StormWorks, S.A. is an innovative Technology and InterMedia company in the business of identifying, investing in, and developing global high growth opportunities. StormWorks will look to invest in companies and projects across a variety of markets with initial holdings and target investments in the following sectors: disruptive technology, Internet and new media.

    See Platform Developments for more information
Javalon, S.A.

International Equity Development & Merchant Banking

Capitalizing On Opportunities In Global Markets For Absolute Risk Adjusted Returns

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Iron Mining Group Relationship Disclosure

The inclusion of this disclosure section is mean to fully divulge and illustrate the circumstances surrounding the current bankruptcy of Iron Mining Group, Inc., a sister company to Javalon Resources, S.A. under their shared parent, Javalon, S.A., and the affect it may have on the current and future operations of Javalon, S.A. and, indirectly, on Javalon Resources, S.A.

Iron Mining Group - History and Status:

In 2008, Javalon, S.A. acquired a controlling stake in a small public energy services company, which eventually became Iron Mining Group. In addition to making a significant financial investment, Javalon, S.A. committed a tremendous amount of time and energy building Iron Mining Group, to the point where it traded with a market value in excess of $180 million, as it had acquired valuable iron ore concessions in Chile and pursued additional exploration and trading opportunities throughout Mexico.

In September of 2010, Iron Mining Group looked to raise $15 million in equity financing for continued expansion and entered into an investment banking engagement with Sunrise Securities Corp. led by its President, Mr. Nathan Low.

This engagement led to the closing of a multi-stage investment transaction with a $1.5 billion dollar NASDAQ Specialty Metals Company looking to expand into the exploding iron ore mining market. The transaction outlined a phased acquisition of up to 51% of Iron Mining Group at a post-money valuation over $680 million dollars with over $340 million being paid either into the company or to certain Iron Mining Group shareholders.

The unfortunate result of this transaction was a dramatic departure from its contemplated destination. Management believes that Iron Mining Group was coerced, by both Sunrise and its Metals Investor, into entering a "bridge loan to own" structure whereby the first $3,300,000 was advance to the company with the understanding that inside 45 days there would be a follow on $25 million equity investment, allow production to begin on its Chilean properties and the continued development of its global iron ore business plan.

The reality was that closing of the $25 million follow-on equity investment was delayed repeatedly at the request of further due diligence and Iron Mining Group was led by the investor to spend the proceeds of the bridge loan on business development and new acquisitions, in preparation for this equity investment. With the $3,300,000 bridge approaching its six month maturity date, a short timetable established due to the imminent equity financing from the same NASDAQ Specialty Metals Company, the investor unexpectedly changed valuation and the terms of the equity investment and when rejected it withdrew its equity investment offer and requested immediate and full repayment.

Unable to repay the bridge loan, faced with the senior secured lender unwilling to negotiate a forbearance agreement and unable to secure replacement financing on short notice due to the remote location of the Chilean assets, Iron Mining Group was forced to file for Chapter 11 Bankruptcy Protection on August 24, 2011.

Additionally, prior to the bankruptcy petition while finding itself in a very difficult position, Iron Mining Group filed a lawsuit claiming $100 million dollar damages against Sunrise Securities Corp and the NASDAQ Specialty Metals Company including claims against Mr. Low and the Executive Chairman of the NASDAQ Specialty Metals Company. This case is still pending and is available for review by PDF download.

IMG Filed Complaint

At the time of this disclosure, after approximately six months in front of the Bankruptcy Judge, Javalon is working with the Trustee and evaluating multiple options to refinance and pay down the current Iron Mining Group senior secured debt, which has now grown to approximately $4,500,000 with interest, penalties and fees, while simultaneously preserving its rights to pursue damages on its pending lawsuit.
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www.Javalon.com
An International Equity Development
& Merchant Banking Company