RSR IG
MINERAL RIGHTS & WORKING INTERESTS DEBT OFFERING
Burbank, along with its affiliated entities, is raising $10 million through a debt offering to acquire select oil and gas mineral rights and working interests, leveraging Red Stone Resources’ proven track record of successful mineral rights acquisitions and monetization across multiple U.S. basins. The Company will benefit from Red Stone’s established platform, which has executed over $300 million in sales from internally funded acquisitions and maintains a consistent track record of 8-figure exits to institutional buyers. The investment thesis combines current yield with significant upside potential through a disciplined mineral rights acquisition strategy focused primarily in the Permian and Haynesville basins.
INVESTMENT HIGHLIGHTS:
o Attractive Current Yield: 16% annual interest rate paid semi-annually, with payments senior to any distributions to the manager
o Strong Asset Protection: Debt Units have priority in liquidation rights to company assets and are senior to any profit distributions
o Experienced Management: Red Stone Resources brings deep operational expertise with over $300M+ in successful mineral rights divestments
o Proven Acquisition Strategy: Initial portfolio will include up to $6M in seed assets already identified and underwritten by Red Stone Resources
o Defined Investment Period: Three-year term provides clear investment horizon
INVESTMENT STRUCTURE:
o Total Offering Size: $10,000,000
o Security Type: Debt Units with liquidation preference
o Interest Rate: 16% per annum
o Interest Payments: Semi-annual (February 15 and August 15)
o Term: 3 years
o Minimum Investment: $50,000 per Debt Unit
TARGET PORTFOLIO:
o Primary Focus: Permian Basin (Midland and Delaware) and Haynesville Shale
o Strategy: Acquire mineral rights in areas with active drilling programs and proven operators
o Risk Mitigation: Portfolio approach across multiple basins and operators
o Value Creation: Leverage proprietary deal sourcing and technical evaluation capabilities
