Slide 1: Capital Raising Presentation December 2015
For personal use only CAPITAL RAISING PRESENTATION December 2015
Slide 2: Important notices and disclaimers
Important notices and disclaimers No reliance: For personal use only This capital raising presentation is a document that has been prepared by KGL Resources Limited (KGL) for the purpose of providing a company and technical overview to interested investors. None of KGL, nor any of its related bodies
Slide 3: Board and management
Board and management For personal use only BOARD OF DIRECTORS & MANAGEMENT Denis Wood –Non Executive Chairman ASX CODE KGL Denis is a qualified metallurgist and geologist with over 45 years experience in the mining industry. Issued shares 141.5 million Chris Bain – Non Executive Director Options 2.4
Slide 4: Capital raising – Overview
Capital raising – Overview For personal use only Offer size and • Capital raising to raise up to $3 million by way of a 2 for 9 non-renounceable structure entitlement offer • Eligible shareholders will be able to apply for additional shares through a top-up offer • Total shares to be issued under th
Slide 5: Capital raising – Proposed timetable
Capital raising – Proposed timetable For personal use only Event Proposed date Announcement of rights issue Tuesday, 29 December 2015 Despatch letter to eligible shareholders containing Appendix 3B information, and Tuesday, 29 December 2015 letter to optionholders “Ex” date for the rights issue Thur
Slide 6: Capital raising – Denis Leslie Wood
Capital raising – Denis Leslie Wood For personal use only Denis Leslie Wood’s commitment in the capital raising • Full underwriting of the entitlement offer • Total commitment of $3 million Denis Leslie Wood’s entitlement • Mr Wood currently holds 2,542,459 KGL shares and, consequently, is an eligib
Slide 7: Capital raising – Denis Leslie Wood
Capital raising – Denis Leslie Wood For personal use only Denis Leslie Wood potential shareholding Shares held by Denis Leslie Denis Leslie Wood ownership Wood Existing holding (prior to capital raising) 2,542,459 1.8% Holding after the entitlement offer if Denis Leslie Wood takes up his 3,107,449 1
Slide 8: Capital raising – Source and use of funds
Capital raising – Source and use of funds For personal use only Source of funds Cash on hand December 2015 $1.4 million Funds raised after costs $3 million Total funds available $4.4 million Use of funds Exploration $2.8 million Project development (follow up drilling, EIS and other studies) $0.3 mi
Slide 9: Jervois – Location
Jervois – Location For personal use only The Jervois Copper Project is located 380km by road from Alice Springs Copper concentrate will be transported by road to Alice Springs then by rail to Darwin for export Project located on existing mining licence Pre-feasibility study completed Environmental i
Slide 10: Jervois planned site layout
Jervois planned site layout For personal use only • 12 km strike length • Open pit and underground mines to feed a centralised flotation plant See ASX announcement dated 16 October 2015 • Production of copper concentrate and a separate silver-lead- zinc concentrate 10
Slide 11: Reward prospect looking south
Reward prospect looking south For personal use only REWARD MARSHALL COX’S FIND GREEN PARROT ROCKFACE BELLBIRD Outcropping copper mineralisation 11
Slide 12: Jervois – Mineral Resource
Jervois – Mineral Resource For personal use only 30.5 Mt @ 1.1% Cu for 327,000 t Cu 30.5 Mt @ 23 g/t Ag for 23 Moz Ag 450,000 30 400,000 Copper Metal (tonnes) 25 350,000 300,000 20 Million Ounces 250,000 15 200,000 150,000 10 100,000 5 50,000 0 0 May July Jan Nov Sep Jul May July Jan Nov Sep Jul 201
Slide 13: Jervois – Mineral Resource
Jervois – Mineral Resource For personal use only • 327,000 tonnes of copper* • 22.6 million ounces of silver • 143,000 tonnes of lead • 47,000 tonnes of zinc • Resources remain open down dip and along strike • 12km of prospective strike length to explore * Full resource statement shown in Appendix 1
Slide 14: Risks – Company specific
Risks – Company specific Company specific risks: For personal use only • Exploration, development, mining and processing risks The business of mineral exploration, project development and mining by its nature contains elements of significant risk. Ultimate and continuous success of these activities
Slide 15: Risks – Company specific
Risks – Company specific For personal use only Company specific risks: • Licences and permits KGL must obtain a number of permits issued by various governmental agencies and regulatory bodies to carry out its planned operations. KGL may be unable to obtain and renew permits and licences necessary fo
Slide 16: Risks – Company specific
Risks – Company specific For personal use only Company specific risks: • Key personnel The success of KGL depends largely on the core competencies of its directors and management, and their familiarisation with, and ability to operate in the metals and mining industry and the ability of KGL to retai
Slide 17: Risks – General
Risks – General For personal use only General investment risks: • Interest and exchange rates, and inflation • General economic conditions and business climate in Australia, and investment sentiment • Stock market fluctuations • Commodity price fluctuations • The nature of competition in the markets
Slide 18: For more information, contact
For more information, contact: For personal use only SIMON MILROY • +61 7 3071 9003 • info@kglresources.com • www.kglresources.com Level 7, 167 Eagle Street Brisbane, QLD 4000 AUSTRALIA ASX CODE: KGL 18
Slide 19: Competent Person Statement
Competent Person Statement For personal use only The Jervois Exploration data in this report is based on information compiled by Martin Bennett, who is a member of the Australian Institute of Geoscientists and a full time employee of KGL Resources Limited. Mr. Bennett has sufficient experience which
Slide 20: Appendix 1: Jervois – Mineral Resource
Appendix 1: Jervois – Mineral Resource For personal use only Cut-off Copper Resources Category Mt Cu % Ag g/t Pb % Zn % Copper kt Silver Moz Lead kt Zinc kt Cu% Indicated 1.4 1.45 35.6 - - 20.1 1.6 - - 0.5 Marshall Copper Inferred 0.3 0.90 20.2 - - 2.5 0.2 - - 0.5 Indicated 5.0 1.14 25.3 - - 57.1 4.