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HIGH-GRADE GOLD DISCOVERY IN MOZAMBIQUE CHIFUNDE GOLD PROVINCE - - PowerPoint PPT Presentation
1 1 HIGH-GRADE GOLD DISCOVERY IN MOZAMBIQUE CHIFUNDE GOLD PROVINCE DISCOVERY: Potentially one of the most exciting African Gold deposit discoveries in recent years KOBUS BADENHORST INDEPENDENT CONSULTANT GEOLOGIST 2 DISCLAIMER -
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By accepting this confidential presentation (the “Presentation Materials”), and in consideration of it being made available to the you, you agree to keep strictly confidential the information contained in it and any information otherwise made available to you by African Lion Resources Ltd (the “Company” or “ALR“)), whether orally or in writing, in connection with the proposed issue of convertible loan notes by the Company to a limited number of qualified investors. If you receive this Presentation on behalf of a corporation, the information contained herein may only be disclosed to such of the recipient corporation’s directors, officers
for their information, and may not be reproduced, copied, published, distributed or circulated, to any third party, in whole or in part, or published in whole or in part for any purpose, without the express prior consent of the Company. This Presentation is a presentation of information about the Company’s activities as the date of the Presentation. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. The information has not been independently verified and is subject to material updating, revision and further amendment. The sole purpose of this Presentation is to provide information on the Company to those parties who have expressed an interest in investigating the possibility of investing in the Company, in order that they may assess whether or not they wish to proceed with a more detailed review of the matters discussed in this Presentation. This Presentation and its contents do not, and are not intended to, constitute, or form any part of, an offer for sale, prospectus, invitation to subscribe for or purchase or otherwise acquire transferable securities in the Company within the meaning of sections 85 and 102B of the Financial Services and Markets Act 2000, as amended (“FSMA”), nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract or commitment to acquire any securities. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company, or any of its respective affiliates, any of their respective directors, officers, employees, agents, advisers or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation No reliance should be placed on the accuracy, completeness or fairness of the information or opinions in this Presentation, and no responsibility or liability is accepted for any such information or opinions, or for any errors or omissions. No person has been authorized to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorized. The contents of this Presentation are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent financial adviser
The information contained in this Presentation is being supplied as a guide only, and prospective investors must make their own investigations and satisfy themselves as to the condition of the Company and the accuracy and completeness of the statements contained herein. This Presentation should not be considered a recommendation by the Company or any of its respective directors, officers, employees, agents, advisers
This Presentation contains forward-looking statements and has been based upon a number of assumptions, forecasts and projections which by their nature are forward-looking. These statements relate to the future prospects, developments and business strategies of the Company. Forward-looking statements may be identified by the use of such terms as "anticipate", "assume", “believe”, “could”, “envisage”, “estimate”, "expect", "forecast", “potential”, “intend”, “may”, “plan”, "should", “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and beliefs, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If
and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at, and on the basis of information known at, the date of this Presentation. Forward looking information in this Presentation includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward- looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this Presentation are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this Presentation, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America or distributed directly or indirectly, in the United States of America or to any resident thereof except in compliance with U.S. securities laws. The technical and scientific information in this document was reviewed and approved by Andy Friese, P.Geo PhD, Competent Person under the Canadian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person under National Instrument 43-101.
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Mozambique government and business community. Mr. van Wyk has personally identified prospective areas and done due diligence on 1,800 concessions. His mining development experience in Mozambique includes Tantalite, Coal, Diamonds, Gold, Rubies, Graphite and Heavy Mineral Sands. Mr. van Wyk completed his MBA from the University Of Wales. He has over 20 years of experience in the financial markets and corporate finance and 20 years of experience as director of listed and unlisted companies.
governance, treasury, marketing and projects. He has worked for major players including Impala Platinum, Eastplats, Trafigura and Vedanta, and has experience with multiple commodities (Platinum group metals, Iron ore, Chrome, Copper Zinc, Lead, Silver). He has been involved in mining, exploration processing and refining since 2001, and has first-hand experience of doing business in Mozambique, Angola, DRC, Namibia and South Africa.
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5 Current Post USD 3,5m Placement Post USD 5m Placement Shares Outstanding: 10,000,000 20,000,000 24,285,714 Options Warrants Outstanding: Debt Outstanding: US$ 2,000,000 US$ 500,000 US$ 500,000 Debts to be Converted at Placing Price: US$ 1,500,000 Pro-Forma Debt: US$ 500,000 Share Issued for Debt Conversion: 4,285,715 4,285,715 Shares Outstanding post Debt Conversion: 24,285,715 28,571,429 Post-Conversion Valuation: US$ 5,000,000 US$ 8,500,000 US$ 10,000,000 Placing Price per Share: US$ 0,35 US$0,35 US$0,35
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Implied Share Price (US$/Share) Assuming Subsequent US$ 20m IPO Fundraise
Note: Based on Average ex Hi/Lo multiples. Assumes (i) current financing raises $3.5m at a pre-money value of $5m (post $1.5m loan conversions), (ii) $20 m is raised at IPO at a 40% uplift to fund bulk sample mining capex and initial exploration phase 3 requirements, (iii) all funds are deployed (no cash value remaining in the Company), and (iv) ALR’s interest in the Chifunde project remains at 80%. 0.34 0.68 1.02 1.36 1.70 2.04 0.65 1.31 1.96 2.62 3.27 3.93 1.50 2.99 4.49 5.98 7.48 8.98 2.36 4.71 7.07 9.42 11.78 14.14 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00
1M oz Resource 2M oz Resource 3M oz Resource 4M oz Resource 5M oz Resource 6M oz Resource Implied Share Price (US$)
Explorer / Developer: M&I + Inf Resources Explorer / Developer: M&I Resources Producer: M&I + Inf Resources Producer: M&I Resources
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600 800 1,000 1,200 1,400 1,600 1,800 2,000 2008 2010 2012 2014 2016 2018 2020
USD/oz
Gold spot price in US dollars, London PM fix
Source: Reuters Datastream, LBMA, World Gold Council (Data to 22/05/2020)
40% 60% 80% 100% 120% 140% 160% Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20
Gold price vs major stock indices
FTSE 100 S&P 500 DJI Gold
Source: Reuters Datastream, LBMA, World Gold Council, Yahoo! Finance (Data to 22/05/2020)
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(1) International Monetary Fund, World Economic Outlook Database, April 2020
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189 km2 (18,900 hectares)
with 80% ALR / 20% Mozambique partner
Primary Deposit in the southeast section of the license yielding grades of up to 63 g/t Au
discovered in the northern section of the project with samples yielding up to 55 g/t Au
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intensifying seasonal rains ➢ Results delayed due to large sample requirement (to ensure accuracy given large nugget effect) and Covid-19 related delays
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Main Hard Rock Deposit Artisanals are mining hard-rock along a strike length of over 2,500m
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150m in length & 80m in width 70m deep into the hard rock Ore is carried out by hand
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Thrust Zone outcrop
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Activities H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023
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EV Reserves M&I Resources M&I + Inf Resources Grade Production Reserves M&I Resources M&I + Inf Resources Production
(US$ millions) (M oz) (M oz) (M oz) (g/t) (k oz) (US$/oz) (US$/oz) (US$/oz) (US$/oz)
Producers Median 300 1.3 2.4 3.1 2.0 154.0 303.1 176.5 140.7 2,310.9 Average 468 2.3 4.6 7.1 2.4 154.5 339.4 179.3 114.6 2,838.9 Average ex Hi/Lo 372 1.7 3.1 4.9 2.3 154.8 327.2 181.0 114.9 2,598.3 Explorers and Developers Median 45 0.0 0.6 2.2 1.9
58.2 20.4
55 0.7 1.5 2.3 3.3
51.0 28.2
51 0.4 1.1 2.1 2.7
50.3 26.1
Reserves, resources and production on a net basis Currency Rate Assumptions: CAD1 = USD0.71; GBP1 = USD1.2; AUD1 = USD 0.4 Share Prices as of 25/05/2020 Producers (12 companies): Explorers & Developers (13 companies): Sources: Company filings, presentations and websites, Morningstar
Enterprise Value /
Avesoro Resources Inc, Caledonia Mining Corp PLC, Galiano Gold Inc., Golden Star Resources, Hummingbird Resources PLC, Pan African Resources PLC, Perseus Mining Ltd, Robex Resources Inc, Roxgold Inc, Shanta Gold Ltd, Teranga Gold Corp, West African Resources Ltd. African Gold Group Inc, AXMIN Inc, Cardinal Resources Ltd, Komet Resources Inc, Loncor Resources Inc, Oklo Resources Ltd, Orezone Gold Corp, Sarama Resources, Shanta acq. of Barrick Kenya Assets, Tanzanian Gold Corp, Thor Explorations Ltd, Tietto Minerals Ltd, Xtra-Gold Resources Corp.
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Implied Enterprise Value (US$M)
Note: Based on Average ex Hi/Lo multiples
21 42 63 84 105 125 40 80 121 161 201 241 92 184 276 368 460 552 145 290 434 579 724 869 300 600 900 1M oz Resource 2M oz Resource 3M oz Resource 4M oz Resource 5M oz Resource 6M oz Resource Implied EV (US$M) Explorer / Developer: M&I + Inf Resources Explorer / Developer: M&I Resources Producer: M&I + Inf Resources Producer: M&I Resources
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Implied Share Price (US$/Share) Assuming Subsequent US$ 20m IPO Fundraise
Note: Based on Average ex Hi/Lo multiples. Assumes (i) current financing raises $3.5m at a pre-money value of $5m (post $1.5m loan conversions), (ii) $20m is raised at IPO at a 40% uplift to fund bulk sample mining capex and initial exploration phase 3 requirements, (iii) all funds are deployed (no cash value remaining in the Company), and (iv) ALR’s interest in the Chifunde project remains at 80%. 0.34 0.68 1.02 1.36 1.70 2.04 0.65 1.31 1.96 2.62 3.27 3.93 1.50 2.99 4.49 5.98 7.48 8.98 2.36 4.71 7.07 9.42 11.78 14.14 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00
1M oz Resource 2M oz Resource 3M oz Resource 4M oz Resource 5M oz Resource 6M oz Resource Implied Share Price (US$)
Explorer / Developer: M&I + Inf Resources Explorer / Developer: M&I Resources Producer: M&I + Inf Resources Producer: M&I Resources
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Cobus van Wyk Phone: (Mobile): +27 (0) 82 490 1015 Email: cobus@africanlionresources.com
African Lion Resources Inc 82 Richmond Street East 1st Floor Toronto, ON M5C 1P1
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Dr Friese has been involved in the mining and exploration industry for the past 27 years. In 2006, he founded Terra Explora Consulting, based in Johannesburg, and has since been working as an independent consulting geologist on a wide range of mining and exploration projects across Africa and Southeast Asia. Dr Friese’s primary expertise and experience include a variety of geoscience disciplines, with main fields of interest and research being applied structural geology, economic geology, global palaeo/neotectonics and geodynamics of the Earth and their practical applications to mineral and groundwater exploration and target generation, in-mine geotechnical hazard assessment of open cast and underground mines, and project evaluation.
Mr Zacarias is a highly respected and prominent figure in the Mozambican business arena. Mr Zacarias was a Governor of two different provinces with the highlight of his career being appointed as Minister of Public Works in Mozambique. Following his tenure as Minister, Mr Zacarias allocated all his time to the private sector. Mr Zacarias has more than 30 years experience in doing business in Mozambique and is an invaluable asset.
proficiency of all machinery on a processing plant and mining site. Hands on participation with the training of locals. General supervision and overseeing of the onsite team to ensure the staff adhere to strict controls and procedures to ensure the project runs smoothly.
Mr Kyle Lusted has been the in-house Geologist for Regius Resources since April 2019. He obtained his Honours Degree in 2017 and Master’s Degree in 2019 from the University of Pretoria, both within the field of geology. Mr Kyle Lusted overseas all geological aspects of the projects run by Regius Resources Group and has experience in various commodities including gold, graphite and heavy mineral sands. Mr Lusted’s main field of interest and research is igneous and metamorphic petrology with a special focus on the formation and alteration of supracrustal ore bodies.
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products and technologies, bringing valuable hands-on operations management. Experienced primarily in prospecting mineral processing and quarry exploration operations having worked in Portugal, Spain, Angola and Mozambique.
Mr Kobus Badenhorst obtained his BSC (Geology) in 1992 and BSC (Hons) (Geology) in 1993, both from the University of the Free State, South Africa. He has more than 20 years’ experience in the Exploration and Mining industry. Mr Badenhorst has been the Managing Director of GeoActiv (Pty) Ltd since 2007. He is involved in various projects for different commodities. Greenstone Stella Platinum; various Bushveld PGM projects; heavy mineral sands projects in South Africa West coast, Sri Lanka and Bangladesh; Postmansburg Iron Ore Projects; Zimbabwe Great Dyke PGM and Greenstone Gold; Zambia Cu; Mali Au etc.
dominated by Mesoproterozoic, metamorphic rocks
(P2Dvl) traversed by N-S Shear Zone as well as interlinking NNE-SSW striking Shear Zone
wide structural corridor that runs parallel to the N-S striking Pan African Suture Zone between East and West Gondwana
quartz-sulphide veins associated with shear zones and sinistral strike-slip faults
include:
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CAPITAL EXPENDITURE ITEM DESCRIPTION TOTAL COST US$
Site Capital Expenditure $12 141 945,90 Plant $8 867 233,33 Yellow Machinery & Vehicles $2 453 408,60 Civils $149 206,45 Safety & Security $67 183,33 Site Office $36 213,33 Tools $22 166,67 Transport & Duties $546 534,18 Camp Capital Expenditure $317 965,03 Kitchen $9 800,00 Accommodation $46 800,00 Living area, boma and boardroom $26 993,33 Laundry area $5 500,00 Police and operator tented camps $59 810,00 General camp equipment $80 719,78 Transport and duties $88 341,92 Other $30 000,00 Share transfer, legal and tax expense $30 000,00 Contingency (5%) $624 495,55
TOTAL $13 114 406,49
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ITEM DESCRIPTION YEAR 1 US$ YEAR 2 US$ YEAR 3 US$ TOTAL US$
Revenue $18 583 989,39 $37 167 978,77 $37 167 978,77 $92 919 946,94 Less: Royalties (6%) $1 115 039,36 $2 230 078,73 $2 230 078,73 $5 575 196,82 Less: Import VAT (16.5%) $3 066 358,25 $6 132 716,50 $6 132 716,50 $15 331 791,24 Plus: VAT Recovery (15%) $2 787 598,41 $5 575 196,82 $5 575 196,82 $13 937 992,04 Less: Operational expenditure $4 744 236,30 $5 962 993,35 $5 962 993,35 $16 670 223,00 Corporate Expenditure $591 350,97 $591 350,97 $591 350,97 $1 774 052,90 Corporate Salaries $415 800,00 $415 800,00 $415 800,00 $1 247 400,00 Office Expenditure $175 550,97 $175 550,97 $175 550,97 $526 652,90 Operational Expenditure $3 902 337,89 $5 038 427,46 $5 038 427,46 $13 979 192,81 Operational Salaries $766 150,00 $909 600,00 $909 600,00 $2 585 350,00 Operational Expenditure $3 136 187,89 $4 128 827,46 $4 128 827,46 $11 393 842,81 Sales Expenditure $24 631,43 $49 262,86 $49 262,86 $123 157,14 Gold refinery $9 631,43 $19 262,86 $19 262,86 $48 157,14 Gold transport cost to Rand Gold Refinery $15 000,00 $30 000,00 $30 000,00 $75 000,00 Contingency (5%) $225 916,01 $283 952,06 $283 952,06 $793 820,14
PROJECTED INCOME $12 445 953,88 $28 417 387,02 $28 417 387,02 $69 280 727,92
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ITEM DESCRIPTION YEAR 1 US$ YEAR 2 US$ YEAR 3 US$ TOTAL US$
Revenue $22 566 272,83 $45 132 545,65 $45 132 545,65 $112 831 364,14 Less: Royalties (6%) $1 353 976,37 $2 707 952,74 $2 707 952,74 $6 769 881,85 Less: Import VAT (16.5%) $3 723 435,02 $7 446 870,03 $7 446 870,03 $18 617 175,08 Plus: VAT Recovery (15%) $3 384 940,92 $6 769 881,85 $6 769 881,85 $16 924 704,62 Less: Operational expenditure $4 744 236,30 $5 962 993,35 $5 962 993,35 $16 670 223,00 Corporate Expenditure $591 350,97 $591 350,97 $591 350,97 $1 774 052,90 Corporate Salaries $415 800,00 $415 800,00 $415 800,00 $1 247 400,00 Office Expenditure $175 550,97 $175 550,97 $175 550,97 $526 652,90 Operational Expenditure $3 902 337,89 $5 038 427,46 $5 038 427,46 $13 979 192,81 Operational Salaries $766 150,00 $909 600,00 $909 600,00 $2 585 350,00 Operational Expenditure $3 136 187,89 $4 128 827,46 $4 128 827,46 $11 393 842,81 Sales Expenditure $24 631,43 $49 262,86 $49 262,86 $123 157,14 Gold refinery $9 631,43 $19 262,86 $19 262,86 $48 157,14 Gold transport cost to Rand Gold Refinery $15 000,00 $30 000,00 $30 000,00 $75 000,00 Contingency (5%) $225 916,01 $283 952,06 $283 952,06 $793 820,14
PROJECTED INCOME $16 129 566,07 $35 784 611,38 $35 784 611,38 $87 698 788,83
Grizzly Feeder Unit FDR-01 Grizzly Underflow Conveyor CON-01 Cone Crusher CHR-02 Jaw Crusher CRH-01 Primary Ball Mill BAL-02 Cluster Cyclones CYC-03 Knelson ConcentratorKNC- 02 Tails to Stockpile STP-05 Classifying Screen SCR-01 Under Pan UPN- 01 Classifying Screen Oversize Conveyor CON-04 Cone Crusher Surge Feed Hopper HPR-01 Jaw and Cone Crushers Return Conveyor CON-03 Jaw Crusher Feed Conveyor CON-02 Pan Feeder FDR- 02 Stockpile Conveyor CON-05 Live Stockpile STP-01 Gold Smelt House AUS-01 Primary Ball Mill BAL-01 Cluster Cyclones CYC-04 Knelson Concentrator KNC-01 Ball Mill Feed Conveyor CON-08 Ball Mill Feed Conveyor CON-07 Live Stockpile Withdraw Conveyor CON-06 Ball Mill 1 Feed Hopper HPR-03 Ball Mill 2 Feed Hopper HPR-02 Pan Feeder FDR- 07 Pan Feeder FDR- 06 Pan Feeders FDR-03; FDR-04; FDR-05 Knelson 2 Feed Pump PMP-03 Knelson 1 Feed Pump PMP-01 Cluster Cyclones CYC-01 Cluster Cyclones CYC-02 Mill Return Pump PMP-04 Mill Return Pump PMP-01 Clean water Dam DAM-01 Clean water Dam DAM-02 Clean water Dam DAM-03 Clean Water Pump PMP-07 Sump B SMP-02 Sump B SMP-01 Mill Section B Sump and Pump PMP-06 Mill Section B Sump and Pump PMP-05 Slimes Dam SDAM-01 Clean Water Return Pump PMP-07
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