Welcome to Buckhorn Resources

Concept

Success leaves clues! The Buckhorn Project is based on the concept that... "if you identify and precisely model a  successful transaction with a transaction of equal or greater value, you will enjoy an equal or greater result." We reviewed many transactions in the energy market that led to identification of a  multi-million dollar transactional profit that we believe could be fully emulated in a relative short period of time leading to an equal or greater profit. 

Dec 04

WSJ

CNN

Model

The transaction being modeled is the  Dec 2006 acquisition of the D.D Shepard Property, Boone County, West Virginia by Natural Resource Partners, LP of Houston Texas. The property consists of 25,000 contiguous acres with coal reserves in excess of 80 million tons, timber and oil and gas reserves. Coal shipment by CSX railroad. The all cash acquisition was for $110 million. The property is scheduled to cash flow $2 million per month.

This transaction was widely reported including the Wall Street Journal CNN SteelGuru Trade Journal and various other media. See side panel and above links for press releases.

Nov Photos

Target

The target is Buckhorn Natural Resources tract consisting of 10,500 acres in Perry and Leslie Counties, KY near Hazard, KY. This tract has estimated coal reserves in excess of 269 million tons, plus timber and oil and gas reserves. The property also has 23 miles of pristine lake front. The Resort Lodge and lake are not located near the proposed mining, which is adjacent to other existing mining projects. No permit problems are expected. This is a huge contiguous tract approximately the size of Manhatten located in the heart of coal country. See Photos.

Opportunity

Cygnus Bio-Energy, LLC, a Florida entity, has entered into an agreement to acquire 75% of the interest in the Buckhorn property including all natural resources with the exception of the oil and gas rights which were previously severed. The remaining 25% will continue to be owned by Buckhorn Natural Resources, LLC. 

We view the coal reserves as the primary resource, which at 269 million tons is more than 3X the reported reserves in the NRP transaction. The significant difference is that at the time of acquisition, the NRP property was fully operational. We believe time required to obtain permits and bring the Buckhorn property fully operational to be between 12-18 months. 

Consequently, Cygnus is offering 50% of the total interest in the venture for an equity investment of $20 million with the idea of bringing the property operational and then selling the asset to a master partnership at an amount equal to or greater than the NRP transaction.

For example, the reported 80 million tons on the DD Shepard property at $45/ton represent lifetime gross revenue of $3,600,000,000. ($3.6 Billion Dollars) and the property sold at $110 million with reported operating revenue of $2 million per month.

In contrast, the reported 269 million tons on the Buckhorn property at $45/ton represent lifetime gross revenue of $12,105,000,000. ($12.105 Billion Dollars) This would seem to indicate the sale value of the Buckhorn to be at least 3X that of the Shepard property.

Clearly, a 50% interest acquired at $20 million would return an exponential profit.

Going Forward

To insure the very best structure and counsel with respect to all facets of the proposed venture we have secured the services of  Buchanan, Ingersoll and Rooney, PC of Pittsburgh, PA. a firm with extensive heavy industry and energy experience. Our chief counsel,  Mr. Donald  Malecki is both a mining engineer and lawyer and has extensive experience in large transactions within the energy industry.

In Kentucky, Jackson Kelly, PC of Lexington will service land title and natural resource transfer issues. Jackson Kelly has served Kentucky for over 180 years and our Kentucky counsel, Mr. Jeff Yost and Mr. W Rodes Brown are experts in these areas.

Our engineer, David Altizer has extensive experience in coal mine operations and thru his equity in Buckhorn Resources will participate in 25% of the project.

If you are a qualified investor and have an interest in acquiring 50% of this venture please contact us via email at: info@cygnusbioenergy.com