Namibia Botswana Seed ed capi pital tal raising ng of up to - - PowerPoint PPT Presentation
Emerging African High Grade Copper Development Opportunity Namibia Botswana Seed ed capi pital tal raising ng of up to $600,000 0,000 at an issue ue price e of 10 cent nts per share e with a free attachi hing ng option on on a
Seed ed capi pital tal raising ng of up to $600,000 0,000 at an issue ue price e of 10 cent nts per share e with a free attachi hing ng option
for-2.5 2.5 basis is with an exer ercis ise e price e of 25 cents ts and a term of 3 years rs
INVESTOR PRESENTATION September 2018
Importa rtant Info form rmatio ion
This presentation has been prepared and issued by Virgo Resources Limited (the “Company") to inform interested parties about the Company and its progress. The material contained in this presentation sets out general background information on the Company and its activities. It does not constitute or contain an offer or invitation to subscribe for or purchase any securities in the Company nor does it constitute an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for or purchase securities in the Company will be entered into on the basis of this presentation. The information supplied is in summary form and does not purport to be complete. The Company, its directors, officers, employees, agents, affiliates and advisers have not verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company makes no representation and gives no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or
You should neither act nor refrain from acting in reliance on this presentation material. This overview of the Company does not purport to contain all information that its recipients may require in order to make an informed assessment of the Company's prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy, and completeness of the information, statements and opinions contained in this presentation and when making any decision in relation to this presentation or the Company. The information in this presentation does not take into account the objectives, financial situations or needs of any particular individual. you should consider seeking independent professional advice based on your own objectives. To the extent permitted by law the Company, its directors, officers, employees, agents, affiliates and advisers exclude any and all liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising out of negligence) arising as a result of the use of anything contained in or omitted from this presentation. All statements, other than statements of historical fact, included in the presentation, including without limitation, statements regarding forecast cash flows, future expansion plans and development objectives
assumptions and analysis and are subject to significant risks, uncertainties and other factors, many of which are outside the control or, and are unknown to the Company. Accordingly, there can be no assurance that such statements or expectations will prove to be accurate and actual results and future events may differ materially from those anticipated or described in this presentation. Historic information is not an indication or representation about the future activities of the Company. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any information contained in this presentation reflect any change in expectations, events, conditions or circumstances on which that information is based. This presentation is provided on a strictly private and confidential basis, to be used solely by the recipient. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of the Company. In accepting this presentation, the recipient agrees that it is provided solely for its use in connection with providing background information on the Company and that it is not used for any other purpose.
VIRGO RESOUR URCE CES LIMITED
FOCUS USED D COPPER R EXPOSURE URE
INITIA IAL PUBLIC C OFFERING RING
Other Securities: Unlisted options attached to Seed Offer (25c / 3 yr) 2,000,000 Unlisted founder options on Issue (25c / 4 yr) 5,000,000 Unlisted Board and Management options on Issue (25c / 3 yr) 1,200,000 Performance Rights Pool up to 5,000,000 Lead Manager Success Options 2,000,000
Loyalty Options Issue: VIR intends to undertake a loyalty issue of listed options 3 months post Quotation on a 1-for-5 basis with an exercise price of 25 cents and a term to expiry of 3 years Number of Shares (Minimum) Funds Raised ($) % Number of shares (Maximum) Funds Raised ($) % Existing Shares on Issue 17,400,000
17,400,000
Seed Capital Raising 5,000,000 $500,000 9.8% 5,000,000 $500,000 8.9% Vendor Shares to be Issued 3,850,000
3,850,000
Lead Manager IPO Success Shares 2,500,000
2,500,000
IPO Capital Raising 22,500,000 $4,500,000 43.9% 27,500,000 $5,500,000 48.9% Total Shares on Issue at IPO 51,250,000 100.0% 56,250,000 100.0% Market Capitalisation at IPO $10.2 million $11.2 million Enterprise Value at IPO $5.7 million $5.7 million
INITIA IAL PUBLIC C OFFERING RING
Capital Allocation Category Minimum Raised ($) % Maximum Raised ($) % Seed Capital Raised $500,000 $500,000 IPO Capital Raised $4,500,000 $5,500,000 Total Capital Reserves $5,000,000 $6,000,000 Use of Funds (over 2 years): Costs of the Offer (funded from seed capital) $487,541 9.8% $488,696 8.1% Administration and Management $900,000 18.0% $900,000 15.0% Reconnaissance Exploration and Geophysical Programs (airborne) – Botswana $350,000 7.0% $350,000 5.8% Diamond Drilling and Exploration at Rhineland / Hope, Gorob and Vendome $2,500,000 50.0% $3,000,000 50.0% Update to Hope, Gorob and Vendome Scoping Study $200,000 4.0% $200,000 3.3% Project Evaluation and Due Diligence $150,000 3.0% $150,000 2.5% Vendor Cash Payments $155,000 3.1% $155,000 2.6% Founder Loan Repayments - Balance ($100,000 paid from seed capital) $85,000 1.7% $85,000 1.4% Working Capital $172,459 3.4% $671,304 11.2% Total Funds Allocated $5,000,000 $6,000,000
FOCUS USED D COPPER R EXPOSURE URE
Company Name ASX Code Jurisdiction JORC (2012) Defined Resource Development Stage Market Capitalisation (undiluted) Kopore Metals Limited KMT Botswana and Namibia Pre-resource Exploration $10.8 million MOD Resources Limited MOD Botswana T3 Copper Project (MOD: 70%): 60Mt @ 0.98% Cu & 14.0 g/t Ag Mahumo Copper Project (MOD: 100%): 2Mt @ 2% Cu Exploration and Development $89.7 million Minotaur Exploration Limited MEP Queensland Pre-resource Exploration $10.5 million Helix Resources Limited HLX New South Wales Pre-resource Exploration $12.6 million Talisman Mining Limited TLM New South Wales Pre-resource Exploration $54.8 million Havilah Resources Limited HAV South Australia and New South Wales Mutooroo: 13.1Mt @ 1.5% Cu Kalkaroo: 223.8Mt @ 0.49% Cu North Portia: 12.4Mt @ 0.81% Cu Exploration and Development $40.4 million Celsius Resources Limited CLA Namibia Opuwo: 112.4Mt @ 0.41% Cu, 0.11% Co & 0.43% Zn Exploration and Development $90.4 million Virgo Resources Limited VIR Botswana and Namibia Hope-Gorob-Vendome: 7Mt @ 2% Cu (with gold, silver and zinc credits not modelled and cobalt upside) (SAMREC compliant) Exploration and Development $10.2 million (at IPO)
Dr Eric Lilford – Non-Executive Director
possesses significant multi commodity and multi jurisdictional expertise and experience obtained over 27 years in the Resources industry in technical, economic, financial and academic functions.
(Gabon).
and cobalt assets in Zambia, the DRC and Namibia. He also managed Matrix Metals and CopperCo’s Lady Annie copper
Gino D’Anna – Non-Executive Director
naturalresourcessector
miningsector
Executive Director of Metals Australia Limited (ASX: MLS), former Directorof K2fly Limited(ASX:K2F) andDirectorof AdventGoldLimited
Modisana Botsile – Consultant Metallurgist
Energy and Water Resources
development
Martin Stein – CFO / Company Secretary
corporate and professional services
Company Secretary for several ASX listed companies PROVEN N TEAM
Dr Quinton Hills – Managing Director
15 years’ experience in project generation, exploration and project development across a broad range of base and precious metals in Australia, Botswana and Sweden.
mineral resource companies. He has a PhD in Structural Geology with extensive experience in multiply deformed and highly metamorphosed terranes and is an expert in exploration concept/target generation.
was responsible for the discovery of ~100M tonnes of copper mineral resources at Boseto in north-western Botswana.
Appointment of Chairman Pending
GREENFIE IELD D COPPER R EXPLORATIO ION OPPORTUNIT UNITIE IES IN THE KALAHARI RI COPPER BELT IN BOTSWANA NA
GREENFIE IELD D COPPER R EXPLORATIO ION OPPORTUNIT UNITIE IES IN THE KALAHARI RI COPPER BELT IN BOTSWANA NA
GREENFIE IELD D COPPER R EXPLORATIO ION OPPORTUNIT UNITIE IES IN THE KALAHARI RI COPPER BELT IN BOTSWANA NA
annexed by Botswana Government, have been identified, all along strike of the known copper / silver deposits
than 200km across the multiple targets
features
geophysical programs, followed up with detailed field mapping and reconnaissance exploration programs targeting the newly identified targets ahead of a maiden drilling program
* VIR licences cences are marked ked with h the black ck outline line
ADVANC NCED D COPPER R DEVELOPMENT NT OPPORT RTUNIT NITIE IES IN NAMIBIA IA
ADVANC NCED D COPPER R DEVELOPMENT NT OPPORTU RTUNITIE NITIES IN NAMIBIA IA
Copper Belt in Namibia
located in a Namibian Park
133,000t of contained copper metal plus gold, silver and zinc credits
Sample
updateable on the basis of current metal prices
projects offering potential toll treatment opportunities
deep-water port
ADVANC ANCED ED COPPER ER DEVEL ELOPM PMENT ENT OPPORTUN RTUNIT ITIES IES IN NAMIBIA BIA
shaft, 2.5m x 2.5m in section, to a depth of 140m below collar
bulk metallurgical sample to be taken from the 100m level and the 140m level for a pilot plant test work
east of the western cut off of the
100mL and 140mL took place in a southerly direction from the shaft which was achieved by using small rail mounted Cocopans that were hoisted to surface
civils remain in place
ADVANC NCED D COPPER R DEVELOPMENT NT OPPORTU RTUNITIE NITIES IN NAMIBIA IA
in Namibia
identified at the project
provides a significantly enhanced understanding of the geology and the existing deposit
surface structural mapping to delineate further strike extension as well as additional drilling designed to link the deposits and upgrade the resource
resource to be completed and SRK scoping study to be updated
ADVANC NCED D FLOURITE ITE AND COPPER DEPOSIT IT IN NAMIBIA IA
ADVANC NCED D FLOURITE ITE AND COPPER DEPOSIT IT IN NAMIBIA IA
the Namibian capital of Windhoek
fluorite – geology hosting the copper mineralisation is separate from the fluorite
logs
Ag from 25m and 11.6m @ 2% Cu and 50.1g/t Ag (drill hole RG1)
identified at the project
the contact zones between the medium intensity and low intensity magnetic signatures
5.77Mt of fluorite at an average grade of 24.1%
at the project
surface structural mapping along the Rehderstal Fault for strike extensions as well as drilling designed to link the deposits and assist resource delineation
ADVANC NCED D FLOURITE ITE AND COPPER DEPOSIT IT IN NAMIBIA IA
ADVANC NCED D FLOURITE ITE AND COPPER DEPOSIT IT IN NAMIBIA IA
the Falconbridge geologists to be the northern extension of the Huab Fault, along which the Copper Valley deposits to the south are located, which have been mined in the past
Blocks G, E and A
the anomalies, trenching has exposed copper oxide mineralisation over a strike length of 400m and remains open to the east. Anomaly E is located 6km to the west and Anomaly G is a further 2km to the west.
ADVANC NCED D FLOURITE ITE AND COPPER DEPOSIT IT IN NAMIBIA IA
three (3) diamond core drill holes completed in 1969
mineralisation range up to 237g/t
and bornite
proves that mineralisation continues to approximately 170m depth and that the width of the mineralisation is substantial
VIRGO RESOUR URCE CES LIMITED
September September October October November November December December January January February February March March April April May May June June Project Project Level Level Permitting Permitting for for Botswana Botswana and Namibia and Namibia Update Hope-Gorob Gorob Copper Resource (JORC 2012) Fieldwork Fieldwork at Hope at Hope-Gorob Gorob and and Rhineland Rhineland Project Project Airborne Airborne Geophysical Geophysical Survey Survey at at Kalahari Kalahari Projects Projects Initial Initial drilling drilling program program at at Hope Hope- Gorob Gorob for strike extension and additional additional resource resource delineation delineation Initial Initial drilling drilling program program at at Rhineland Rhineland Project Project Fieldwork Fieldwork at the at the Kalahari Kalahari Copper Copper Projects Projects following following airborne airborne surveys surveys Upgrade Upgrade JORC JORC (2012) (2012) resource resource at at the Hope-Gorob Gorob Copper Project Upgrade Upgrade and and Expand Expand the the Scoping Scoping Study on the Hope-Gorob Gorob Copper Copper Project Project Indicative schedule of exploration activity at the VIR projects
VIRGO RESOUR URCE CES LIMITED
VIRGO RESOUR URCE CES LIMITED
Int ntro rodu duction ion
An investment in the Company is not risk free and prospective new investors should consider the risk factors described below, together with information contained elsewhere in this Presentation, before deciding whether to apply for Shares. The Company is at start-up stage with the objective of exploration and development of copper resources. Any profitability in the future from the Company’s business will be dependent upon the successful drilling and exploitation of the Company’s tenements, together with the successful sales and marketing of the product. Shares being offered in the Company are considered speculative due to the present stage of establishment
intended to be an exhaustive list of the risk factors to which the Company is exposed.
Resou
rce Estima imates
The Company does not currently have any JORC or NI 43-101 compliant resources. Should a JORC or NI 43-101 compliant resource be delineated in the future, any resource estimate will be an expression of judgment based on knowledge, experience and industry practice. Estimates which were valid when originally calculated may alter significantly when new information or techniques become available. As further information becomes available through additional fieldwork and analysis, the estimates are likely to change. This may result in alterations to development and mining plans which may, in turn, adversely affect the Company’s operations.
Inv nves estmen ent Spec eculativ lative
The above list of risk factors ought not to be taken as exhaustive of the risks faced by the Company or by investors in the Company. Potential investors should consider that the investment in the Company is speculative and should consult their professional advisers.
Regulatory risk
Political, taxation, economic, legislative or regulatory change in Australia or Botswana (including the proposed mining tax and the proposed tax and trading system for carbon emissions) or in
investments and operations.
Industry risk
The industry in which the Company invests carries with it individual risks associated with that
respect of that industry, but may include factors related to coal commodity prices, currency exchange rates, native title claims and the availability of necessary resources to undertake work programs.
Timing
The timing of the completion of drilling and testing programs, any bankable feasibility studies or the commencement (or rate) of copper shipping is dependent on many factors and unknown. Accordingly the Directors can give no assurance as to the ultimate timing of such events.
Environmental Risks
The operations and proposed activities of the Company are subject to laws and regulation concerning the environment. As with most exploration Tenements and mining operations, the Company’s activities are expected to have an impact on the environment, particularly if advanced exploration or mine development proceeds. It is the Company’s intention to conduct its activities to the highest standard of environmental obligation, including compliance with all environmental laws.
VIRGO RESOUR URCE CES LIMITED
Economic risks and and external market factors
General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company’s activities, as well as on its ability to fund those activities.
No No liquid market for securities
Shareholders will not immediately have a ready market to sell Shares in the Company. Accordingly, it may be difficult for Shareholders to realise the value of their investment.
Future capital needs
The raising of additional funds by the Company to further invest in the exploration and development of any assets may not be possible, or not on sufficiently attractive terms. This may be due to reasons such as general market conditions and investor sentiment and
Achievement of
The Company’s initial investments may not be successful in delivering the outcomes and returns contemplated in the Company’s business plan. In addition, other investments which the Company may make in the copper exploration area may not generate the financial returns anticipated at the time the investment and/or acquisition is undertaken. The Directors are unable to provide investors with information as to the ultimate size and scale of the Company’s potential resource base and accordingly, investors must make their decision to invest on the basis of the skills of the Directors.
Dependence on
and management
The Company is dependent on its Directors and management to drive the drilling, testing, marketing and selling programs and manage the path to fully commercialising the resource
the proposed operations of the Company.
Title Risk
The Tenements are governed by legislation relating to grant, renewal and forfeiture. There is no guarantee that current or future applications, conversions or renewals of tenure will be
payment of rent and meeting minimum annual expenditure commitments. The inability to meet these conditions in relation to the Tenements could affect the standing of Tenements or restrict its ability to be renewed, adversely affecting the operations, financial position and performance
www.virgoreso goresour urces.c .com
.au
(E): gino@virgoresources.com.au (M): +61 400 408 878
(E): quinton@virgoresources.com.au (M): +61 409 852 907
(E): ben.faulkner@privatewealth.sanlam.com.au (M): +61 402 298 030