Mbazo Resources Limited is a newly formed Special Purpose Vehicle sponsored by Njenge Minerals Limited and Deli Ventures to exploit several small gold mines in Zambia. The Board of Directors and management of Mbazo are still not decided on the project structuring model to adopt for this project. They have therefore sought your input as a project finance specialist.

Required:

A.Explain any FOUR project structures highlighting the advantages and disadvantages of each.

B.Recommend the appropriate structure for this project and the reasons behind your recommendation.