Viking Mines Limited · ASX:VKA
Viking Mines — Viking Ashanti — Merger or Acquisition (December 2013)
26 slides from Viking Mines's merger presentation, Dec 6, 2013
Slide 1: Merger Presentation: Viking Ashanti and Auminco Mines
For personal use only Viking Ashanti Limited (ASX: VKA) Auminco Mines Limited Merger Presentation December 2013
Slide 2: Important Information
Important Information For personal use only Important Information This presentation has been prepared by Viking Ashanti Limited (Viking Ashanti). The information contained in this presentation is a professional opinion only and is given in good faith. This document is dated 4 December 2013. Certain
Slide 3: About Viking Ashanti
About Viking Ashanti For personal use only • Listed on ASX in May 2010 (ASX:VKA) (www.vikingashanti.com) Key Statistics – explorer and developer of gold deposits in Ghana Current Price Range $0.03 to $0.039 (21 Nov-29 Nov 2013) – Akoase Gold Project (100%) Shares on Issue 90,150,580 • near surface I
Slide 4: About Auminco Mines
About Auminco Mines For personal use only • Mongolian focussed emerging coal producer – two high quality strategically located coal projects provide opportunity for short term development, mining and cash flow • near term production potential from Berkh Uul bituminous coal project, with 41.7 Mt (21.
Slide 5: Transaction Rationale
Transaction Rationale For personal use only Acquisition to drive a substantial increase in shareholder value to Viking • Two advanced projects - Berkh Uul and Khonkhor Zag – provides the opportunity for short term development, mining and cashflow • Upside potential from three other coal projects in
Slide 6: Details of the Transaction
Details of the Transaction For personal use only • Shareholding – Viking will acquire 100% of Auminco by the issue of: • 81 million Viking shares • 27 million unlisted Viking options - exercisable @ $0.12 Indicative Timetable within 30 months of completion VKA announces Merger 20 Nov 2013 agreement
Slide 7: Board and Management Post Transaction
Board and Management Post Transaction For personal use only • Jack Gardner, Non Executive Chairman • Peter McMickan, Executive Director – founding and non-executive director of Mincor – over 30 years experience throughout Australia Resources and Africa with multi-national mining companies in gold, b
Slide 8: Combined Portfolio – Key Assets Overview
Combined Portfolio – Key Assets Overview For personal use only Southern Ghana Mongolia 8
Slide 9: Berkh Uul Coal Project
Berkh Uul Coal Project For personal use only • 100% owned • located 400 km north of Ulaanbaatar in northern Mongolia within the Orkhon-Selege coal district and within 20km of the Russian border • within 40km of rail access into Russian offtake markets; close proximity to water, infrastructure and tr
Slide 10: Khonkhor Zag Coal Project
Khonkhor Zag Coal Project For personal use only • 100% owned anthracitic coal project located 1,400 km SW of Ulaanbaatar in Western Mongolia • strategically located within 40km of Chinese Burgastai Border Port with an existing haul road adjoining the tenement • previously mined outcropping coal with
Slide 11: Akoase Project
Akoase Project For personal use only • located in the Ashanti Gold Belt of southern Ghana, one of Current resource the most prolific gold endowed regions in the world • 100% owned by Viking, 25 km from Newmont’s 8.5 million oz Akyem gold mine • 790,000 oz gold Inferred JORC (2012) resource, open alo
Slide 12: West Star/Blue River Project
West Star/Blue River Project For personal use only • located in the Ashanti Gold Belt of southern Ghana directly along strike from Endeavour’s 2 million oz Nzema gold mine • under joint venture, Viking has earned 100% interest in rights to hard rock gold • soil geochemistry and drilling highlights p
Slide 13: Exploration Opportunities
Exploration Opportunities For personal use only • Auminco holds interest in four other projects in Mongolia: – Buduun, an exploration project, 40km from the Chinese border where coking coal is targeted in a proven coal basin – Dalt and Budurgana exploration projects, in a proven coal basin where out
Slide 14: Summary
Summary For personal use only By acquiring Auminco, Viking will achieve its strategic objective of owning near term production assets to drive increased shareholder value The transaction rationale is compelling due to: • potential for early cash flow from expected low capex, low opex and high margin
Slide 15: Appendices
For personal use only Appendices 15
Slide 16: Improving investment climate in Mongolia
Improving investment climate in Mongolia For personal use only On the back of an improving political and regulatory environment, Mongolia’s mining industry is regaining its momentum April 2013 amendments to the Strategic Entity Foreign Investment Legislation (SEFIL) has reduced Recent positive dev
Slide 17: Improving investment climate in Mongolia (continued)
Improving investment climate in Mongolia Mongolia (continued) poised for strong growth Natural resource sector will continue to drive growth For personal use only Over the last two years Mongolia has experienced record high double-digit growth, fuelled by high foreign investment in its burgeoning
Slide 18: Development of Mongolia's rail infrastructure
Development Mongolia’sofimproving rail infrastructure will open infrastructure new markets... Development of rail infrastructure will open new For personal use only transportation routes Key coal mines and projects in Mongolia Existing Railway Phase I Phase II Nuurstei Phase III Erdenet Northern Rai
Slide 19: China's demand for all types of coal continues to grow
China’s demand for all types of coal continues to grow… For personal use only Coal & Anthracite Net Imports by China Global Metallurgical Coal Demand in million mt in million mt 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 200 1600 1,440 167.7 145.8 1400 150 1,185 1200 103.4 920 1000 100 800 60
Slide 20: Introduction to Coal Quality
Introduction to Coal Quality For personal use only Price High 20
Slide 21: Russian Offtake Markets
Russian Offtake Markets For personal use only Berkh Uul is situated in close proximity to Russian coal buyers Siberian Coal Markets Mongolian coal producer has recently signed offtake with coal buyers in Buryratia, Russia Buryratia, Irkutsk, Ulan – Ude Kansk and other Russian regions have substa
Slide 22: Growing Mongolian Domestic Markets
Growing Mongolian Domestic Markets For personal use only Berkh Uul is situated in close proximity to current rail infrastructure to readily access growing Mongolian energy needs Current Opportunities Air quality – Ulaanbaatar is the 2nd most polluted city in the world (WHO); Government Clean Air I
Slide 23: KZ Anthracite targeting Xinjiang's Tremendous Growth Potential
KZ Anthracite targeting Xinjiang’s Tremendous Growth Potential For personal use only • Khokhor Zag is situated in close proximity to a growing Chinese Steel, metals and PCI market • Anthracite coal from the KZ project will target the Premium Ultra Low Volatile PCI market Mongolia Xinjiang Xinjiang P
Slide 24: Berkh Uul Resource Summary
Berkh Uul Resource Summary For personal use only Runge Asia Limited, (”RAL”) trading as Minarco-MineConsult (MMC), was commissioned by Bold Resources Limited, (Bold), to prepare an independent estimate (hereafter, referred to as the Statement) of the Open Cut Coal Resources of the Berkh Uul Coal Pro
Slide 25: Berkh Uul Resource Summary
Berkh Uul Resource Summary For personal use only JORC Coal Resource (Mtonnes) Seam Indicated Inferred Total C 0.3 0 0.3 A 0 3.2 3.2 1 12.4 11.4 23.8 2 9 5.4 14.4 Total 21.7 20 41.7 Average coal qualities for the main seams are summarised below.(Note: average qualities are the weighted average of Mea
Slide 26: Contact
Contact For personal use only Peter McMickan Managing Director W: + 61 8 9261 7300 E: pmcmickan@vikingashanti.com Matthew Howison Emerald Partners, Corporate Advisers W: + 61 2 9251 5065 E: m.howison@emeraldpartners.com.au 26
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