Silver / Lead / Zinc Production in Peru INVESTOR PRESENTATION FOR - - PowerPoint PPT Presentation

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Silver / Lead / Zinc Production in Peru INVESTOR PRESENTATION FOR - - PowerPoint PPT Presentation

Silver / Lead / Zinc Production in Peru INVESTOR PRESENTATION FOR IMPORTANT NOTICE The information contained in these slides and the accompanying oral presentation (together, the Presentation) have not been approved by an authorized person


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Silver / Lead / Zinc Production in Peru

INVESTOR PRESENTATION FOR

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IMPORTANT NOTICE

The information contained in these slides and the accompanying oral presentation (together, the “Presentation”) have not been approved by an authorized person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. The information contained in this document does not purport to cover all matters that may be relevant for the purposes of considering whether or not to make any prospective investment and is not intended to provide, and should not be relied upon, for accounting, legal or tax advice. This Presentation is supplied to you solely for information. The information contained in this Presentation has been prepared by and is the sole responsibility of the existing and proposed new directors of Mines & Metals Trading (Peru) PLC (the “Company”). The Company has produced this Presentation in connection with the proposed placing of new ordinary shares in the Company (the “Placing”), which is intended to finance the operations of the Company . The Presentation and any further confidential information made available to any recipient, either orally or in writing, must be held in complete confidence and documents containing such information may not be reproduced, used or disclosed without the prior written consent of the Company. The Presentation shall not be copied, published, reproduced or distributed in whole or in part, to any other person, for any purpose at any time. The information contained in the Presentation is not intended to be viewed by, or distributed or passed on (directly or indirectly) to, and should not be acted upon by any class of person other than (i) qualified investors (within the meaning of the Prospectus Directive 2003/71/EC) and (ii) investment professionals falling within Article 19(5) and high net worth companies, unincorporated associations and partnerships and trustees of high value trusts falling within Article 49(2) respectively of the Financial Services and Markets Act 2000 (Finan- cial Promotion) Order 2005 (or persons to whom it may otherwise be lawfully communicated) (together “Relevant Persons”). Persons who are not Relevant Persons should not attend the Presentation or rely on or act upon the matters communicated at the Presentation. By accepting the Presentation, you agree to be bound by these restrictions. The Presentation does not constitute an admission document, prospectus or listing particulars relating to the Company; it has not been approved by the London Stock Ex- change or the Financial Conduct Authority, nor does it constitute or form part of any offer, invitation, inducement or commitment to, sell, issue, or any solicitation of any such

  • ffer or invitation to subscribe for, underwrite or buy, any shares in the Company or any of its affiliates to any person in any jurisdiction, nor shall it nor any part of it, nor the

fact of its distribution form the basis of, or be relied on in connection with, or act as any inducement to enter into any contract or investment decision in relation thereto. Any decision in connection with any proposed Placing must be made solely on the basis of the information contained in the final admission document to be published in due course by the Company. No reliance may be placed for any purpose whatsoever on the information contained in the Presentation or any assumptions made as to its completeness, accuracy or fair- ness thereof, nor does the Company, or any of their respective existing or proposed members, directors, officers, employees, agents, affiliates, representatives or advisers or any other person accept any obligation or responsibility to update or keep current the information contained in this document. The information contained in the Presentation, which has not been independently verified, is confidential and for background purposes only and is subject to further verification, updating, revision and amendment and completion without notice. This Presentation does not purport to be all-inclusive or to contain all the information that an investor may desire to have in evaluating whether

  • r not to make an investment in the Company. You are encouraged to seek individual advice from your personal, financial, legal, tax and other advisers before making any

investment or financial decisions, subscribing for or purchasing any securities.

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100% acquired in 2017 by Mining Sense

Location: Huachocolpa district, Huancavelica 7 hours by road from Lima One of Buenaventura’s historic assets (over 70 years of production until 2014) Fully-permitted and operational plant

  • 12,000-ha land package
  • 5 million tonnes of resources acquired from PAS
  • Mine-life: 20+ years with existing processing facilities

Plant production started Q3 2018 (300 tpd)

  • Partnerships with local miners for ore supply
  • Offtake agreement with Trafigura

Own mining production starting Q1 2019

RECUPERADA: A REGIONAL INVESTMENT OPPORTUNITY

PERU Huancavelica Lima

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RECUPERADA: RAPID PROJECT PROGRESS SINCE 2017

PHASE I ACQUISITION + PLANT PRODUCTION

  • Acquisition of Recuperada +

extensive land package

  • Production cash-fmow (third party
  • re)
  • Operating profjt US$20/tonne.

INITIAL INVESTMENT COMPLETED CASH-FLOW PROVISION PLANT OPERATIONS (300 TPD) PHASE II GROWTH AND CONSOLIDATION LEADING TO IPO

  • Plant and tailings upgrade: 600 tpd
  • Mine production restarts
  • Operating profjt: US$37/tonne.
  • Drilling - Resource validation (JORC)

US$5 MILLION INVESTMENT IMMEDIATELY REVENUE COMBINATION OWN MINING / THIRD PARTY ORE H1 2019 PHASE III A NEW CORPORATE LEVEL LONDON IPO 2019

  • Raising US$3 to US$5 million
  • Potential plant expansion
  • Rapid growth phase through regional

presence US$10 MILLION INVESTMENT 2019-2020 SOLID POSITION AS A KEY REGIONAL PLAYER NEW M&A / PARTNERSHIP OPPORTUNITIES

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STRONG RESOURCE POTENTIAL

POTENTIAL RESOURCES

TONNES

4,755,400 326,300 473,200 179,400 40,555 33,070 5,405 77,845 1,720 5,892,895

VEIN

Tangana Huachocolpa 4’000 Huachocolpa Sur Maria Luz Belenda Rubia Zone Nancy Luz Rico Antimonio Esperanza Germana TOTAL

Pb %

3.06 4.17 2.70 0.22 7.83 3.00 3.43 3.49 1.80 3.05

Ag oz / t

3.64 3.29 3.93 16.72 3.32 9.94 7.30 9.83 11.67 4.16

Zn %

1.48 2.74 4.92 0.37 10.05 5.31 5.42 5.93 4.40 1.94

Source: Pan American Silver

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FINANCIAL PROJECTION

t tpd US$/t US$/t US$/t US$/t US$/t t US$’000 US$’000 US$/t Tonnage Daily Average Value per tonne Average Realised Value per tonne Average Processing Cost Average Operating Overheads Average Processing Charges Average Concentrate Sales per annum Estimated Revenues Operating Profit Operating Profit

2019

184,500 523 210-220 194 (26) (6) 38 21,758 40,798 6,775 36

2020

216,000 600 205-215 190 (20) (5) 38 23,334 43,410 7,952 37

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RECUPERADA INVESTMENT SUMMARY

US$5 million investment plan to restart mining production in 2019

OWN MINING PRODUCTION Q1 2019

Well-defjned steps to grow the company - IPO planned 2019

SOLID CORPORATE PLAN

Mineral supply contracts and

  • ff-take agreement with

major international trader

PARTNERSHIPS IN PLACE

12,000 Hectares - potential for production increases. New M&A

  • pportunities under evaluation.

UPSIDE POTENTIAL

Competitive Debt Position Less than 15% of Balance Sheet

STRONG EQUITY

Plant already operating. Permits being extended to guarantee full mine life

IN PRODUCTION STRATEGIC LOCATION

Potential to consolidate the dis- trict and unlock the real poten- tial as a regional play Mine and mill acquired from Buenaventura. Bought additional land package from Pan American Silver.

100% OWNERSHIP

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CORPORATE TIMELINE

Q2 2019

  • 6-9 months of production history
  • Own mining operations in place
  • Plant expanded to 600 tpd
  • Drilling completed and Resource delineated
  • IPO on London Stock Exchange

Q4 2017

  • Acquisition of 6,500 Ha Pan American Silver

concessions

  • Deals with local suppliers initiated

Q3 2016

  • Recuperada identified as a target

Q3 2017

  • Mining Sense acquires

Recuperada from Buenaventura

Q3 2018

  • Production commences - 300 tpd.
  • First sales of concentrates
  • Financing: Off-take agreement with Trafigura
  • Agreement with EMO and Private Placing Fundraising
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José M. García - Co-founder, CEO and Director

  • MSc. Mining Engineering / M.Phil. Mineral Economics

Chosen Global Leadership Fellow by the World Economic Forum (Switzerland) International mining career: Peru, Chile, Australia, Spain. Anglo American, Buenaventura, BHP Billiton, Inmet

Sebastian Wahl - Co-founder, CFO and Director

Degree in Business Law / BSc Business Administration and Management A decade of experience in the investment business, mining and commodity trading Affinity Gold, Mines & Metals Trading Peru, Consultant for precious metals companies

John Gray - Exploration Manager and Director

Senior Geologist (Royal School of Mines-UK) Former CEO and Exploration Manager of various private and public junior companies 25+ years of experience in multiple deposit types across Latin America, Africa and Europe James Leahy - Non Executive Director Starting career at the LME. 32 years involved in mining industry projects worldwide. James Capel, Credit Lyonnais, Canaccord, Mirabaud Securities. Paul Dudley - Non-Executive Director Paul began his career at PWC. Fellow of the Chartered Institute of Accountants of England and Wales, and Member of the UK’s Chartered Institute of Securities and Investment. Extensive experience in IPOs and fundraising, both public and private. Myles Campion - Non-Executive Director BSc.(Hons.) in Geology from University of Wales College, Cardiff and a MSc. (MinEx) from the Royal School of Mines in London. Deep specialization in technical and financial aspects of the Natural Resources sector, resource evaluation and project assessment.

MINING SENSE BOARD OF DIRECTORS

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Ciro Durán General Manager, Recuperada

Mining Engineer Formerly at Mundo Minerals and Hatch

Jesús Montero Mining Director

15-year experience, developed greenfield projects (Spain) Formerly at Las Cruces Copper, Berkeley Energia

Héctor Gómez Legal Manager

Corporate lawyer Specialization in finance and tax law

Giorgio Albertini Legal Advisor

Partner at Albertini Abogados Lawyer, Masters in Finance and Corporate Law

Philippe Cohen Strategy Advisor

Entrepreneur, banking background Involved across extractive industries value chain

Gilbert Lanoire Finance and Controlling

CPA, MBA, lead auditor for ISO 9000 quality systems Former Chief Accountant Officer at Barrick South America

Javier Pachari Plant Manager

Metallurgical Engineer 10+ years experience in processing operations

Juan Pablo Guerrero Geologist

Geological engineer with track-record in community relations Formerly at Silver Standard, Votorantim, Oban Mining

MINING SENSE TEAM

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APPENDIX: SITE PHOTOS

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APPENDIX: A PROACTIVE COMMUNITY APPROACH

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THANK YOU!

OFFICE

  • Av. La Paz 1121

Miraflores, Lima Peru Tel: +51 (1) 414 9095 José M. García, CEO j.garcia@mining-sense.com Tel: +51 944 163 451 Sebastian Wahl, CFO s.wahl@mining-sense.com Tel: +51 994 745 841