West African Resources Ltd · ASX:WAF
West African Resources — Investor Presentation (December 2018)
35 slides from West African Resources's investor presentation, Dec 5, 2018
Slide 1: Sanbrado Gold Project – Capital Raising Presentation December 2018
Sanbrado Gold Project We s t A f r i c a ’s n e x t t i e r 1 g o l d a s s e t Capital Raising Presentation December 2018 Richard Hyde – Founder, Managing Director & CEO Not for Release to US wire services or distribution in the United States
Slide 2: Important Notice
IMPORTANT NOTICE IMPORTANT NOTICE AND DISCLAIMER related to exploration and development of natural resource properties; uncertainty in West African’s This document does not constitute an offer of new ordinary shares (New Shares) in any jurisdiction in ability to obtain funding; gold price fluctuatio
Slide 3: Important Notice – Qualified Persons and Competent Persons Statement
IMPORTANT NOTICE NI 43-101 QUALIFIED PERSONS AND COMPETENT PERSONS STATEMENT mineral resources is based on information compiled by Mr Richard Hyde, a Director, who is a Member Information in this presentation that relates to exploration results, exploration targets or mineral of The Australian Insti
Slide 4: Executive Summary
EXECUTIVE SUMMARY West African to be fully funded through first production at Sanbrado West African will be fully funded to production for Sanbrado Gold Project in Burkina Faso (Sanbrado) with A$326 million1,2,3 debt and equity package. Major permits in place for development; updated mining lice
Slide 5: Equity and Debt Funding Details
EQUITY AND DEBT FUNDING DETAILS 5
Slide 6: Placement and SPP Overview
PLACEMENT AND SPP OVERVIEW An underwritten placement of 172.7 million New Shares under the Company’s 25% Placement capacity, pursuant to ASX Listing Rules 7.1 and 7.1A to raise approximately A$43.17 million (before costs). Offer Details Offer Price of A$0.25 per New Share represents a: − 15.3% d
Slide 7: Debt Funding Summary
DEBT FUNDING SUMMARY Credit approved US$200 million (A$278 million1) finance facility (the Debt Facility) with Taurus Funds Management Pty Ltd (Taurus). Taurus selection follows five month competitive process. Fourteen proposals received from US$124 million to US$215 million from banks, debt fun
Slide 8: Sources and Uses of Funds to Nov 2020
SOURCES AND USES OF FUNDS TO NOV 2020 WEST AFRICAN TO BE FULLY FUNDED THROUGH TO FIRST PRODUCTION AT SANBRADO Sources1 A$M Uses1 A$M Cash at bank2 32 Development costs (incl. A$19m contingency)5,6 199 Placement proceeds3 43 Pre-production mining costs5,6 58 Project financing costs including interest
Slide 9: Indicative Equity Raising Timetable
INDICATIVE EQUITY RAISING TIMETABLE Placement Date1 ASX and TSX-V trading halt Tuesday, 4 December 2018 Shares re-commence trading Thursday, 6 December 2018 Settlement of Placement Shares Thursday, 13 December 2018 Expected trading of Placement Shares Friday, 14 December 2018 SPP Date1 Record Date T
Slide 10: West African Overview
» a Sa Saee = i. A ees WEST AFRICAN OVERVIEW I AFRICAN RESOURCES
Slide 11: Sanbrado Gold Project Highlights
SANBRADO GOLD PROJECT HIGHLIGHTS High grade Low cost, high Conventional +200,000oz pa margin operation mining and production processing Experienced Fully funded to management and Significant production build team exploration upside potential 11
Slide 12: Corporate Overview
CORPORATE OVERVIEW INVESTORS BY TYPE ASX & TSX-V: WAF 1832 Asset Total Ordinary Shares on Issue 690.8m Mgt (Dynamic VanEck Global Options on issue 15.2m Funds) 6% 7% Top 20 Shareholders 51% Insiders & Cash (31 October 2018) A$32m Retail Management 36% 4% Market Capitalisation1 (at A$0.295/share) A$2
Slide 13: Experienced Board and Management
EXPERIENCED BOARD AND MANAGEMENT BOARD OF DIRECTORS RICHARD HYDE MARK CONNELLY SIMON STORM IAN KERR Founder, MD & CEO Non-Exec Chairman Non-Exec Director Non-Exec Director +20 years experience in the mining +25 years experience in mining. + 25 years experience in Australian +30 years experience in m
Slide 14: Sanbrado Gold Project
SANBRADO GOLD PROJECT Located in central Burkina Faso 110km, 1.5 hrs southeast of Ouagadougou Excellent infrastructure ‒ 20km from sealed highway ‒ Excellent mobile phone coverage ‒ LV grid power on site ‒ 15km from HV grid power ‒ 18km from stable water source Low population density area, l
Slide 15: Sanbrado Gold Project Work Programs 2018-19
SANBRADO GOLD PROJECT WO RK PROG RAMS 2018- 19 PROJECT Total finance package of A$326 million including A$278 million1 in debt and approximately A$48 million in equity2,3 FINANCE WAF to enter into deferred payment plan of up to US$10m with Byrnecut Water storage pit c.150,000m3, upgrade of sit
Slide 16: Development Costs and Schedule
SANBRADO GOLD PROJECT DEVELOPMENT COSTS AND SCHEDULE 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Box-cut & portal establishment, decline development Commencement of major works Underground ore development and mining Open pit mining commences First gold and commercial production Pre-production
Slide 17: Feasibility Study Highlights
SANBRADO GOLD PROJECT F E A S I B I LT Y S T U D Y H I G H L I G H T S KEY PROJECT METRICS High-grade underground and open-pit operation with 2Mtpa SABC CIL plant MRE of 2.35Moz Au (Indicated) & 0.55Moz Au (Inferred) Average 211koz per year for first 5 years Average 133kozpa over 11 year LOM
Slide 18: M1 South Deposit
SANBRADO GOLD PROJECT M1 SOUTH DEPOSIT June 2018 MRE OP 0-120m - 170koz at 6.6 g/t gold (Ind), 10koz at 4.8 g/t gold (Inf) UG 120-530m - 620koz at 25.5 g/t gold (Ind), 60koz at 7.6 g/t gold (Inf) June 2018 Probable Reserves OP 0-120m - 156koz at 6.9 g/t gold UG 120-500m - 553koz at 11.7 g/t
Slide 19: M1 South Deposit – Drilling
SANBRADO GOLD PROJECT M1 SOUTH DEPOSIT +700m and still going strong Step down drilling confirms mineralisation still wide open. Recent drilling beneath reserves include: – TAN18-DD189: 11m at 11.2 g/t from 654 and 6m at 24.4 g/t Au from 675m – TAN18-DD214A: 0.5m at 520 g/t Au from 578m – TAN18-DD2
Slide 20: M5 Deposit
SANBRADO GOLD PROJECT M5 DEPOSIT June 2018 MRE 37.2Mt at 1.3 g/t Au for 1.5Moz (Ind) 12.8Mt at 1.1 g/t Au for 0.45Moz (Inf) June 2018 Probable Reserves 0.8Moz at 1.5 g/t gold (16.4Mt) Main pit 2km long, up to 400m wide and 200m deep in southwest Ore from surface Over 50% oxide feed 3.8
Slide 21: Ore Mined by Source and Annual Production
SANBRADO GOLD PROJECT ORE MINED BY SOURCE AND ANNUAL PRODUCTION 300,000 M1 South OP 2 years 250,000 M5 OP 11 years M1 South UG 4.5 years TAN18-DD228: 25m at 15 g/t Au from 862m including 200,000 5.5m at 40.4 g/t Au 220m beneath current reserves Contained Ounces 150,000 100,000 50,000 - 1 2 3
Slide 22: Growth of Resource, Reserves and Grade 2014-2018
SANBRADO GOLD PROJECT GROWTH OF RESOURCE, RESERVES AND GRADE 2014 -2018 2,500 2.50 2.40 2,000 2.00 grams per tonne 1.70 1.70 1,500 1.50 koz Au 1,000 1.20 1.20 1.00 0.90 500 0.50 437 278 736 440 980 440 1,332 894 2,022 894 2,350 1,557 0 0.00 Jul 2014 Feb 2015 Aug 2016 Feb 2017 Oct 2017 Jun 2018 Indic
Slide 23: Near Term Milestones
NEAR TERM MILESTONES CURRENT DEVELOPMENT PLAN FOR 2018 AND BEYOND 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Further resource / reserve and definition drilling Mining and environmental permits approved Updated DFS Award of EPCM and Order Mill Package Detailed design and commencement of
Slide 24: Appendices
% : a WS a 7 E ree LS ——— APPENDICES I AFRICAN RESOURCES
Slide 25: Sanbrado Project – Regional Development Potential
SANBRADO PROJECT PLACEHOLDER FOR REGIONAL DEVELOPMENT POTENTIAL MAP FROM SHANE Region hosts 14Moz undeveloped resources Potential for regional consolidation and infrastructure synergies Sanbrado has the highest grade of all deposits in the vicinity and is key to unlocking value in the region 2
Slide 26: Mineral Resources and Ore Reserves
MINERAL RESOURCES AND ORE RESERVES SANBRADO GOLD PROJECT MINERAL RESOURCES | June 2018 INDICATED RESOURCES INFERRED RESOURCES Cutoff Deposit Grade Grade (Au g/t) Tonnes Au Oz Tonnes Au Oz (Au g/t) (Au g/t) O/P <120m 0.5 800,000 6.6 170,000 50,000 4.8 10,000 M1 South U/G >120m 3.0 750,000 25.5 620,00
Slide 27: Summary of Underwriting Agreement
SUMMARY OF UNDERWRITING AGREEMENT The Placement is fully underwritten by Euroz Securities Limited (Euroz) and Sprott Capital Partners, a division of Sprott Private Wealth LP (Sprott) (together, the Underwriters) pursuant to an underwriting agreement (Underwriting Agreement). The Underwriters’ obliga
Slide 28: Key Risks
KEY RISKS There are a number of factors, both specific to the Company and of a general nature, which may, either individually or in combination, affect the future operation, exploration, development and financial performance and/or financial position of the Company, its prospects, and/or the value o
Slide 29: Key Risks Cont.
KEY RISKS CONT. Land and resource tenure The Company’s exploration permits and/or exploitation concessions are subject to the 2015 Mining Code of Burkina Faso (Mining Code). In Burkina Faso, each exploration permit is granted for a specific term. Each exploration permit carries with it annual expend
Slide 30: Key Risks Cont.
KEY RISKS CONT. Country Risk The Company’s operations in Burkina Faso are subject to the risks associated in operating in a foreign country. These risks may include currency exchange rates, high rates of inflation, terrorism, labour unrest, social unrest, civil disobedience, renegotiation or nullifi
Slide 31: Key Risks Cont.
KEY RISKS CONT. Occupational health and safety WAF manages certain risks associated with the occupational health and safety of its employees. WAF takes out insurance to cover these risks within certain parameters, however it is possible for injuries and/or incidents to occur which may result in expe
Slide 32: Key Risks Cont.
KEY RISKS CONT. Underwriting risk WAF has entered into an underwriting agreement with Euroz Securities Limited and Sprott Capital Partners ,a division of Sprott Private Wealth LP, who have agreed to manage and fully underwrite the Placement, subject to certain terms and conditions (please refer to t
Slide 33: International Offering Jurisdictions
INTERNATIONAL OFFERING JURISDICTIONS This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in a
Slide 34: International Offering Jurisdictions Cont.
INTERNATIONAL OFFERING JURISDICTIONS CONT. Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering material relating t
Slide 35: West African Resources Ltd – ASX / TSXV: WAF
West African Resources Ltd – ASX / TSXV: WAF www.westafricanresources.com
West African Resources — Investor Presentation (December 2018) on 6ix