Lcl Resources Limited · ASX:LCL
Lcl Resources — Merger or Acquisition (September 2018)
28 slides from Lcl Resources's merger presentation, Sep 19, 2018
Slide 1: Nickel Laterite Development Opportunity: Proposed Acquisition and Capital Raising
Nickel Laterite Development Opportunity Proposed Acquisition and Capital Raising
Slide 2: Disclaimer & Important Information
Disclaimer & Important Information ASX Code: MNC.AX; AIM Code: MNC.L NATURE OF THIS DOCUMENT This presentation has been prepared by Metminco Limited (ACN 119 759 349) (Metminco or the Company). The information is based on publicly available information, internally developed data and other sources an
Slide 3: Disclaimer & Important Information
Disclaimer & Important Information ASX Code: MNC.AX; AIM Code: MNC.L DISCLAIMER To the maximum extent permitted by law, the Company does not make any representation or give any warranty or undertaking, express or implied, as to the accuracy, fairness, sufficiency, reliability, adequacy or completene
Slide 4: Company Snapshot: Current
Company Snapshot: Current ASX Code: MNC.AX; AIM Code: MNC.L Capital Structure (as at 12 September 2018) 12 Month Share Price Performance & Volume Ordinary Shares 912.54m Ticker: ASX & AIM listed MNC Share Price (A$) (12 Sep 2018) 0.5¢ Market Cap (undiluted) (12 Sep 2018) $4.5m Options(1) 555.86m Cas
Slide 5: Colombia - Cauca Belt: Address for Giant Gold
Colombia - Cauca Belt: Address for Giant Gold ASX Code: MNC.AX; AIM Code: MNC.L 5
Slide 6: Current Asset Overview & Locations
Current Asset Overview & Locations ASX Code: MNC.AX; AIM Code: MNC.L Location: Quinchia Gold Portfolio (Colombia) Summary: Quinchia Gold Portfolio (Colombia) 100% (deferred milestone payments owed Ownership to RMB) Drilling to Date > 40,000 m Gold-copper porphyry-style mineralisation (1) Tesorito TS
Slide 7: Current Asset: Tesorito
Current Asset: Tesorito ASX Code: MNC.AX; AIM Code: MNC.L Tesorito Drilling (Quinchia Gold Portfolio) Summary: Tesorito Gold-copper porphyry-style mineralisation (1) 7 holes drilled to date, best results: TS-DH-02: 384m @ 1.01g/t Au from 16m 64m @ 1.67g/t Au from 144m in TS-DH-07: 253m @ 1.01g/t Au
Slide 8: Proposed Acquisition
Proposed Acquisition ASX Code: MNC.AX; AIM Code: MNC.L Metminco proposes to acquire 100% existing share capital in Sunshine Minerals Limited (Sunshine) through the issue of shares on a staged basis. Sunshine is a private company based in the Solomon Islands, northeast of Australia focused on the exp
Slide 9: Proposed Acquisition
Proposed Acquisition ASX Code: MNC.AX; AIM Code: MNC.L The Jejevo Project: Excellent potential DSO nickel advanced Exploration Target(1) • Tonnes ranging from approximately10Mt to 15Mt within 12m of surface • Grades ranging from approximately 1.1% to 1.3% Ni • Majority of drilling completed by Sum
Slide 10: Proposed Acquisition Structure
Proposed Acquisition Structure ASX Code: MNC.AX; AIM Code: MNC.L The terms of the proposed Acquisition are summarised below: 250,000,000 fully paid ordinary shares in the capital of Metminco (Metminco Shares) ($1,500,000 less the Deposit (see below) and agreed debts in Sunshine which will be satis
Slide 11: Acquisition Rationale
Acquisition Rationale ASX Code: MNC.AX; AIM Code: MNC.L Nickel • Market likely to enjoy EV growth • Laterite supply disruption in Asia • Prices off base of 2015-16 Attractive Entry Price • De-risked through transaction structure incorporating technical and permitting milestones Diversification
Slide 12: Jejevo Nickel - History
Jejevo Nickel - History ASX Code: MNC.AX; AIM Code: MNC.L 1960-70s Inco 82 drill holes, 158 pits 1972 Inco/ BHP feasibility study 2012/13 Sumitomo Metal Mining (SMM) 338 diamond holes 2014 SMM apply for Mining Lease (ML) 2015 Prospecting Licence (PL) expired 2018 new PL (PL-01/18) grante
Slide 13: Jejevo Nickel - Historical Work and Potential
Jejevo Nickel - Historical Work and Potential ASX Code: MNC.AX; AIM Code: MNC.L 428 drill holes (338 diamond + 8 other holes drilled by SMM 2012/13 plus 82 Inco holes from 1970s) Exploration Target(1) between approximately 10Mt & 15Mt at between approximately 1.1% & 1.3% Ni within limonite, tran
Slide 14: Jejevo Nickel - Historical Work and Potential
Jejevo Nickel - Historical Work and Potential ASX Code: MNC.AX; AIM Code: MNC.L Nickel laterites form over ultramafic (basement) rocks which have high Mg, Ni and Co. The high tropical rainfall causes the rocks to weather, removing and leaching the Mg and Si and resulting in the enrichment of Fe, N
Slide 15: Jejevo Nickel - Conceptual DSO Plan
Jejevo Nickel - Conceptual DSO Plan ASX Code: MNC.AX; AIM Code: MNC.L MNC plan: Year 1 Estimate maiden JORC Resource • verify exploration data & records (may need confirmatory drilling) • model & estimate maiden JORC (2012) compliant resource Year 2(1) Submit development plan for ML and refresh
Slide 16: Planned Milestones
Planned Milestones ASX Code: MNC.AX; AIM Code: MNC.L 2018 2019 Q4 Q1 Q2 Q3 Q4 Quinchia Gold Project Colombia Review Tesorito/Dosquebrados Current Drilling, follow up as warranted Negotiate Chuscal JV Current Chuscal permitting EL Drilling Initial Miraflores permitting POW EIS Jejevo Nickel Project S
Slide 17: Proposed Capital Raising
Proposed Capital Raising ASX Code: MNC.AX; AIM Code: MNC.L Metminco is seeking to raise circa $3.0 million on the following structure: • A placement of 135,000,000 fully paid ordinary shares (New Shares) at an issue price of 0.4¢ per share to raise $540,000 (Placement). The shares issued through the
Slide 18: Appendix: Jejevo Nickel - Social License
Appendix 1 Jejevo Nickel - Social License ASX Code: MNC.AX; AIM Code: MNC.L PL granted July 2018 • Valid for 3 years • Required Land User Agreement Landowner Agreement • Landowners 20% free carry to production 18
Slide 19: Appendix: Tausere Bauxite Project
Appendix 2 Tausere Bauxite Project ASX Code: MNC.AX; AIM Code: MNC.L Early stage prospect on Choiseul Island PL granted March 2017 • Valid for 3 years • Land User Agreement granted April 2017 • 515km2 Bauxite identified in 2 targets • Gibbsite • Residual, after limestone • Limited historical i
Slide 20: Appendix: Miraflores: Mineral Resource and Reserve
Appendix 3 Miraflores: Mineral Resource and Reserve ASX Code: MNC.AX; AIM Code: MNC.L JORC Mineral Resource (1.2g/t Au cut-off) (March 2017)(1) Resource Mt Au (g/t) Ag (g/t) Au (koz) Ag (koz) Classification Measured 2.96 2.98 2.50 283 237 Indicated 6.31 2.74 2.90 557 588 Total (M&I) 9.27 2.82 2.77 8
Slide 21: Nickel Laterite Prices - Shanghai Metals Market
Nickel Laterite Prices - Shanghai Metals Market ASX Code: MNC.AX; AIM Code: MNC.L 1.8% - 2.0% Nickel Ore Price (A$) – 1 Year 1.4% - 1.6% Nickel Ore Price (A$) – 1 Year 1.8% - 2.0% Nickel Ore Price – 1 Year Performance 1.4% - 1.6% Nickel Ore Price – 1 Year Performance Source: Bloomberg 21
Slide 22: Suite 3, Level 2, Collins Street, Melbourne
Suite 3, Level 2, 470 Collins Street, Melbourne, Victoria, 3000 Australia kwilson@metminco.com.au +61 409 942 355
Slide 23: JORC Code, 2012 Edition – Table 1 report template
JORC Code, 2012 Edition – Table 1 report template Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling • Nature and quality of sampling (eg cut channels, random • INCO completed extensive drilling and p
Slide 24: JORC Table 1: Sub-sampling techniques
Criteria JORC Code explanation Commentary appropriate Mineral Resource estimation, mining studies • Details are currently being sought describing the level of logging detail and the and metallurgical studies. use of core photography which are likely to have been undertaken at a level • Whether loggi
Slide 25: Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary at its current advanced exploration/pre-resource stage. Data spacing • Data spacing for reporting of Exploration Results. • The initial core drilling and pitting conducted by INCO in the 1970s was on 400 and • Whether the data spacing and distribution is suf
Slide 26: JORC Table 1: Mineral tenure and land status
Criteria JORC Code explanation Commentary status park and environmental settings. 2018 (Nickel Laterite Development Opportunity- Proposed Acquisition and • The security of the tenure held at the time of reporting along Capital Raising). with any known impediments to obtaining a licence to • PL-01/18
Slide 27: JORC Table 1: Exploration results reporting
Criteria JORC Code explanation Commentary o dip and azimuth of the hole presentation announced to the ASX on 18 September 2018 (Nickel Laterite o down hole length and interception depth Development Opportunity- Proposed Acquisition and Capital Raising). o hole length. • • If the exclusion of this in
Slide 28: JORC Table 1: Further work
Criteria JORC Code explanation Commentary geotechnical and rock characteristics; potential deleterious • No other substantive exploration data has been recorded or compiled for the or contaminating substances. Tausere Bauxite Prospect. Further work • The nature and scale of planned further work (eg
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