Investor Presentation February 2012 Disclaimer This presentation - - PowerPoint PPT Presentation
Investor Presentation February 2012 Disclaimer This presentation - - PowerPoint PPT Presentation
Investor Presentation February 2012 Disclaimer This presentation has been prepared by Ouro Mining Inc. (the "Company"). This presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person,
Disclaimer
This presentation has been prepared by Ouro Mining Inc. (the "Company"). This presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval of the Company. The material contained in this presentation is for information purposes only. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. Any offering of any of the Company's securities to Australian persons will be subject to Australian securities laws. The distribution of this document in jurisdictions
- utside of Australia may be restricted by law, and persons in to whose possession this document comes should inform themselves about, and observe, all such
- restrictions. In Australia this document is only being provided to persons who are sophisticated investors, in accordance with section 708(8) of the Corporations Act
2001 ("Corporations Act") and professional investors, in accordance with section 708(11) of the Corporations Act, or to such other persons whom it would otherwise be lawful to distribute it. This presentation is not financial product or investment advice. It does not take into account the investment objectives, financial situation and particular needs of any investor. Before making an investment in the Company, an investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances, seek legal and taxation advice as appropriate and consult a financial adviser if necessary. This presentation may contain forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and sale of
- gold. Forward-looking statements include those containing such words as "anticipate", "estimates", "forecasts", "should", "could", "may", "intends", "will", "expects",
"plans" or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables and changes in underlying assumptions which could cause actual results or trends to differ
- materially. The Company does not make any representation or warranty as to the accuracy of such statements or assumptions.
This presentation has been prepared by the Company based on information available to it as at 26 January 2012 and has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or
- therwise arising in connection with it, including without limitation, any liability arising from fault or negligence on the part of the Company or its subsidiaries or
affiliates or the directors, employees, agents, representatives or advisers of any such party. The Company estimates its reserves and resources in accordance with the Canadian NI 43-101 Reporting Standard of Mineral Resources and Reserves. The Company will commence a works program to estimate its reserves and resources in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves 2004 Edition (JORC Code) following completion of the Pre IPO Capital Raising.
Heavener Project Overview
Section 1
Project Location
Dall Dallas
Resource Status
Heavener Project - Summary
- The coal occurs in the Lower Hartshorne Seam in Oklahoma and
Arkansas
- Seam width averages 2m and in places is up to 4m thick
- Seam dips 12⁰ to 17⁰ to the NNW
- Seam has moderate to high gas increasing with depth and will require
degassing
- No evidence of seam faulting in the entire 18 kms of strike of the seam
- Over 300 Drillholes on the tenements (29,000 metres)
- Two 43-101 Reports already completed in 2008 and 2011
- Resource of 65Mt within tenements
- Additional 140Mt along strike and down dip (currently being
negotiated)
Raw Coal
- Ash (%) 17.9
- Volatile Matter (%) 21.04
- Fixed Carbon (%)
61.6
- Sulfur (%)
1.31
- kcal/kg 6,966
- Washed Coal
- Float @ 1.4 Specific Gravity (%) 68.6 - 86.0
- Ash (%)
6.2 – 6.9
- Volatile Matter (%) 22.8 –23.8
- Fixed Carbon (%)
69.4 – 70.7
- Sulfur (%)
0.81 – 1.04
- kcal/kg (dry basis) 8,036 – 8,105
- FSI @ 1.5 S.G.
9.0
- HGI
100+
- Coke button
8.5 to 9
Coal Quality Low to Mid-vol Hard Coking Coal
Tenement Status
Heavener Project - Summary
- Six coal leases totalling 2772 hectares held by:
Ouro Mining, Inc. Filing Number: 1912291074 Incorporated in the State of Oklahoma, United States
- Fully permitted title due to recent opencut mining by the previous
- wners Farrell Cooper
- Requires permitting for underground development
- The region has a good skilled workforce available
- Total local and government support for project development
- Excellent infrastructure and access to rail and port.
Transport Infrastructure
Dallas
Potential Markets
Planned Work Q1 - 2012
Heavener Project – Planned Work
- Drilling of 21 diamond drillholes for:
- Geotechnical Work and Mine Design
- Degassing Studies
- JORC Reserve Statement
- Coal washability and washplant design
- 2D Seismic Survey above Mines 1 and 3 areas for structural studies.
Heavener Conceptual Mine Layout
Production Status
Heavener Project – Production Summary
- Planned initial production – 1Mtpa sales
- Estimated Capital Cost – US$80m
- Estimated Mining Cost – US$65 per tonne
- Estimated Total Cost of Production – US$100 per tonne FOB
- Estimated sales - +US$250 per tonne
Management Team
Section 2
Directors & Management
Management Team
Mr Larry Li – Chairman Mr Songqiang Chen – Deputy Chairman Mr Dong Ji – Non-Executive Director Mr Michael Liu (MA,MBA) – Non-Executive Director Mr Mark Syropoulo (BSc) – Alternate Director Mr Michael Liu Mr John Fisher-Stamp (FCA, FTIA, GAICD, MIMC) – Executive Director Mr Paul Ingram (MAus IMM) – Executive Director and CEO Mr Tony J Huffman – Company Secretary Mr Mark Frauenhoff – Non-Executive Director Mr George Wang – Vice President of Finance
Metallurgy and Washplant design
A&B Mylec Pty Ltd Andy Meyers – Principal
Mining and Engineering
LD Operations – Mining and Design Services Peter Ross – Principal Greg Lewicki and Associates, PLLC
Geology and JORC Resource Work
Hanna Consulting Services Pat Hanna FAusIMM, CP, MMICA, MAICD, MAGMM - Principal Consultant
Technical Advisors
Advisors
Accountant
San Francisco, United States Mok Accountancy Corporation
Professional Advisors
Advisors
Legal
Brisbane, Australia Blake Dawson New York, United States Sichenzia Ross Friedman Ference Anslow LLP
Offer Overview & Share Capital Structure
Section 3
- Target Capital Raising Cornerstone Investors - BFS Round
- Offer Price Regulation S Shares
- f Common Stock
- Shares of Common Stock on issue prior to this Offer
- Number of Regulation S Shares of Common
Stock to be offered under this Offer
- Total Shares of Common Stock and Regulation S Shares of
Common Stock after Issue pursuant to the Offer:
- Shares of Common Stock and Reg. S undiluted
- Current Offer Price for all Shares undiluted
- Equity Value undiluted
- Options Outstanding for Shares of Common Stock
US$15,000,000 US$0.45 233,333,333 33,333,333 266,666,666 US$0.45 US$120,000,000 15%1
1= Options terms provide 15% entitlement to shares of common stock following completion of first US$80m capital raising
Private Placement Seed Funding - Offer Overview
Metamining, Inc. Cornerstone Investors 87.50% 12.50%
BFS Seed Round Equity Structure Undiluted
Ouro Mining, Inc.
- Ouro is seeking to raise US$15m to undertake Bankable Feasibility Study for the
Heavener Project. IPO will be considered by directors in either of Mine Construction or Production phases.
- These funds will be used for the following:
- work program to bring mine reserves to JORC standard
- undertake Bankable Feasibility Study
- repayment of Metamining, Inc. Short Term Loan
- payment of Farrell Cooper balance of 2nd CN Instalment
- IPO prospectus, professional, expert costs and ASX
admission costs
- estimated offering costs – legal, technical and corporate
fees and expenses
- working capital and corporate overhead
Total
Use of Funds
US$2m US$2m US$0.5m US$3m
US$2.5m
US$2m US$3m
US$15m
US$350 to 400m
- Equity Value Pre – BFS Round
- Enterprise Value Pre - BFS Round
- Resource 65 million tonnes
- Implied Market Capitalisation on Completion of Seed
Cornerstone Investors – BFS Round
- Target Market Capitalisation Range on completion of
Construction Round
US$105,000,000 US$120,000,000 US$120,000,000
Offer Overview & Share Capital Structure
- Directors shall consider interposing an Australian Holding
Company above Ouro Mining, Inc. preceding the Construction Round in preparation for ASX Admission and compliance with Listing Regulations.
- Directors shall consider the merits of dual listing
- n HKEx Post ASX IPO
US$65,000,000 70,000,000 US$0.90–$1.00 US$350 – 400m 425,625,000 15%1 44,444,444
- Target Capital Raising to Fund Construction Round1
- Target Additional Shares of Common Stock to be issued
at Construction Round following 1 for 3 bonus issue :
- Target Number of New Shares of Common Stock
- Target Offer Price Range per Share undiluted
- Target Equity Value on completion of Construction Round
- Target Total Shares of Common Stock undiluted
- Options Outstanding for Shares of Common Stock
- Regulation S Shares of Common Stock dealing restrictions
released at Construction Round:
- Number of Regulation S Shares of
Common Stock inclusive of 1 for 3 bonus issue. Construction Round Offer Overview & Share Capital Structure
1= Options terms provide 15% entitlement to shares of common stock following completion of first US$80m capital raising
1 = Capital required is subject to BFS outcomes . Target Capital of US$65m relates to the performance obligation of the 15% Options holder.
Seed Round and Post Construction Round Structure Undiluted Pre IPO
Metamining Inc Seed Cornerstone Investors
Construction Round
Subject to BFS outcomes – illustration only
Metamining Inc Seed Cornerstone Investors Construction Round Investors Ouro Mining Inc Ouro Mining Inc 87.50% 12.50% 73.10% 10.44%1 16.46%
1 = Based on a Construction Round price
- f US$0.92c
Australia/US Junior Coal Producers, Explorers/Developers - Diluted EV (US$m)
Market Comparables
CSO OURO 101 105 105
Australia/US Junior Coal Produces, explorers/Developers - EV/t
1 = Ouro EV per Resource tonne comparison with Junior Explorer/Developers in Australia "Chart 6 MTE verses recent coal market .transactions ( A$EV/T), Average 1.67 -Metro Coal RBS Morgans 15 June 2011.
Early Stage Market Comparables
2.00 1.85
1.621
Market Comparables
Ouro Comparable Junior Coal Collective - Producers, Explorers/Developers , Australia and United States
Company
EV $USM Resource Mt Reserve Mt EV US$/t1
Key mines/project/(s)
Cliffs Natural Resources, Inc - NYSE (CLF)2 757 119 6.36 INR Resources Energy, LLC West Virginia, USA acquired July 2010. Producer 2 UG Mines Production in 2011 is expected to reach 1.7mtpa Met and 1.2 mtpa Thermal. Bathurst Resources Ltd (BTU) 3 417 73 10 5.72 Buller Coal Project OC (NZ) Producer ramping up to 2Mtpa hard coking coal. Massey Energy Company - NYSE- (MEE)5 960
- 416
2.30 Cumberland Resources Corp Mines located in Virginia, United States acquired in March 2011 for $960m by Massey Energy. Producer 4 UG Mines ramping to 5 mtpa in 2012 Met Coal 50% and Thermal 50%. Cline Mining Corporation TSX - CMK4 400 315 1.26 Elk Mine UG Project, Colorado, USA. Near Term Met Coal Producer CY Q3 2011. Ramping to 3mtpa in CY 2012. Carabella Resources Ltd –ASX -(CLR)3 205 95
- 2.13
Mabbin Creek Complex (Bowen Basin) 3-5Mtpa UG and OC Projects. Near Term Met Coal Producer 2015. Stanmore Coal Limited – Mackenzie Project- ASX (SMR)6 119 99
- 1.20
OC Project, Blackwater, QLD, Australia. Conservative / early stage EV/t. JORC inferred resource. Corsa Coal Corp. - TSX (CSO)7 101 80 1.28 Wilson Creek, 2 UG and 2 OC Projects Somerset, Pennsylvania, USA. Near Term Met Coal Producer CY Q3 2011. Ramping to 2.5mtpa Met Coal 80% and Thermal 20%. Ouro Mining, Inc – Heavener Project 120 65 35 1.85 Heavener Project, Oklahoma, USA. Additional inferred Met Coal Resource 140mt permit
- process. Production Met Coal forecast CY 2013 ramping to 1.5mtpa by CY2014. CDN 43-101
- completed. Scoping Study Jan 2011 Greg Lewicki And Associates, PLLC. OC and UG permits
granted.
References: 1 = EV $US/t Assumed CDN/AU $ = 1 US$ for EV comparison 2 = www.ir.cliffsnaturalresources.com and http://www.miningweekly.com/article/cliffs-closes-757m-inr-coal-assets-acquisition-2010-08-03 3 = Bell Potter ASX Coal Sector Implications of recent M & A, 30 September 2011 4 = www.clinemining.com and Cormark Securities Inc. Coking Coal producers April 7 2011
Producers Explorers/Developers
5 = http://www.miningweekly.com/article/massey-energy-to-buy-cumberland-resources-for-960m-2010-03- 17 6 = RBS Morgans, Stanmore Coal, 11 May 2011. 7 = www.corsacoal.com and http://www.corsacoal.com/news/index.php?&content_id=32
Timeline
- Seed Capital Funding- Jan-Feb
2012
- Drilling, seismic and JORC
resource studies Mar-July 2012
- Completion BFS Reporting Aug –
Sep 2012
- Construction Round Funding –
Sep-Nov 2012
- Procurement and Construction
Start-up Q1 - Q3 2013
- Commencement of Production
Q4 2013