Taung Gold International Limited · HKEX:621
Taung Gold International — Merger or Acquisition (July 2011)
16 slides from Taung Gold International's merger presentation, Jul 28, 2011
Slide 1: Proposed acquisition of Taung Gold
Proposed acquisition of Taung Gold Jack Li, Chairman and CEO, Wing Hing Neil Herrick, CEO, Taung Gold 28 July 2011
Slide 2: Disclaimer
Disclaimer By attending the meeting where the presentation is made, or reading the presentation materials, you agree to be bound by the following restrictions. Any failure to comply with these restrictions may constitute a violation of the applicable securities laws. This presentation has been prepa
Slide 3: Proposed transaction: summary
Proposed transaction: summary ♦ Wing Hing to acquire up to 86.97% of Taung Gold ♦ Consideration: ♦ up to US$580 000 000 (approx. HK$4 524 000 000), satisfied by: • issue of up to 10 977 630 003 new shares at HK$0.41 per share • in addition, issue of up to 1 009 616 519 new shares to current holders
Slide 4: Structure on completion
Structure on completion ♦ Electrum will be largest Wing Hing shareholder ♦ holding approx. 23.87% (assuming Wing Hing warrants are exercised in full) ♦ Electrum: ♦ part of a group of private companies based in New York • group’s business is to invest in diversified precious metals exploration and de
Slide 5: About Wing Hing
About Wing Hing ♦ Hong Kong-listed company ♦ engaged principally in gold, coal mining in People’s Republic of China (PRC), and sale of minerals ♦ holds rights to gold mining activities at Long Men Sou mine, Chicheng County, Hebei Province, PRC ♦ coal assets being divested 5
Slide 6: About Taung Gold
About Taung Gold ♦ Gold exploration, development and mining company focused on South Africa ♦ Experienced board, senior management team ♦ Flagship projects (Witwatersrand Basin) ♦ Jeanette (Free State Province) ♦ Evander 1 (Mpumalanga Province) ♦ 23.2Moz gold resource ♦ 5.0-10.6g/t average grade ♦ U
Slide 7: Project locations
Project locations Ad WING HING [Vl xan < 3 & ro) ai 4 Nesrut we Waterval Boven af a NTs EVANDER TWISTDRAAI PROJECT en ce Legend [[) Witwatersrand Basin [[) Greenfield Exploration Project yu Flagship Project / @ Town — Road River tp atl N Bethighem 7 5 I is} NAMIBIA \\s ) BOTSWANA ANS > Sy 2 A SW, ND
Slide 8: Project summary
Project summary Key project indicators Jeanette Evander1 Total resource 15.1Moz 8.1Moz Life of mine 30 years 30 years Project peak funding US$603m in 2016 US$315m in 2018 Average cash operating cost US$322/oz US$397/oz Peak annual production 380 000oz 267 000oz 1 Subject to S11 Ministerial Consent 8
Slide 9: Jeanette: substantial high-grade resource
Jeanette: substantial high-grade resource ♦ Acquired from Harmony in 2008 Bordered by Harmony’s flagship ♦ New Order Prospecting Right Target, Tshepong, Phakisa mines – produced ♦ Substantial Basal Reef resource 374 847oz in 2010 ♦ Scoping study - June 2010 ♦ significant gold production profile ♦ ro
Slide 10: Jeanette: low cash costs and robust economics
Jeanette: low cash costs and robust economics ♦ Project suspended in 1955 as higher grade operations were being opened up by Anglo American in the Free State goldfield Key project indicators ♦ Khaki Shale technical challenge Project peak funding US$603m in 2016 ♦ independent technical committee esta
Slide 11: Evander: fast track to production
Evander: fast track to production ♦ 2008 JV with Evander Gold Mines and Harmony to earn 52% by April 2013 ♦ Agreement in September 2010 to acquire 100% of Evander Project 1 for US$33.8m ♦ Two adjacent properties in well-established mining area ♦ No 6 Shaft ♦ Twistdraai ♦ New Order Mining Right held
Slide 12: Evander: low cash costs and robust economics
Evander: low cash costs and robust economics ♦ No 6 Shaft decommissioned by Gold Fields in 1998 for economic reasons after 13 years of production ♦ Existing shaft infrastructure Key project indicators ♦ Shallow: 1 000 - 2 300m Project peak funding US$315m in 2018 ♦ lower mining costs Peak annual pro
Slide 13: Greenfields exploration: upside opportunities
Greenfields exploration: upside opportunities ♦ An exciting portfolio ♦ South Rand ♦ Yzerspruit ♦ Bothaville ♦ Hilton ♦ Malmani ♦ Palmietfontein ♦ Blue sky opportunity ♦ Wits Basin Eastern Limb 13
Slide 14: New board members
New board members Neil Herrick ♦ 20+ years’ gold mining experience CEO, Taung Gold ♦ Registered as a professional engineer with the Engineering Council of South Africa ♦ Past President and council member, Association of Mine Managers of South Africa ♦ Former Chairman, Mines Professional Associations
Slide 15: Proposed transaction: key benefits
Proposed transaction: key benefits ♦ Substantial portfolio of gold assets, comprising: ♦ measured, indicated and inferred resources ♦ exploration projects ♦ future growth opportunities ♦ Potential for Taung Gold to develop into: ♦ a significant gold producer ♦ one of South Africa’s lowest cost produ
Slide 16: Proposed acquisition of Taung Gold
Proposed acquisition of Taung Gold Jack Li, Chairman and CEO, Wing Hing Neil Herrick, CEO, Taung Gold 28 July 2011
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