Kingston Resources Ltd. · ASX:KSN
Kingston Resources — Merger or Acquisition (November 2021)
47 slides from Kingston Resources's merger presentation, Nov 18, 2021
Slide 1: Acquisition of the Mineral Hill Mine in NSW and Equity Capital Raising
Acquisition of the Mineral Hill Mine in NSW and Equity Capital Raising 18 November 2021 Andrew Corbett, Managing Director ✓ Immediate production and cash-flow ✓ Exceptional exploration upside ✓ Enhanced platform for growth ASX: KSN
Slide 2: Disclaimer
Disclaimer 2 Forward Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of Kingston Resources Limited (“KSN”) and its projects, are forward looking statements. Such forward looking statements: • include, amo
Slide 3: Disclaimer – Competent Person's Statement
Disclaimer 3 Competent Person’s Statement - Mineral Resource Reported in Accordance with 2012 JORC Code – Mineral Hill The information in this report that relates to the reporting of the Mineral Hill Mine Mineral Resource Estimate is based on and fairly represents, information and supporting documen
Slide 4: Executive Summary – A transformational acquisition
Executive Summary – A transformational acquisition 4 • Kingston to acquire the Mineral Hill Gold-Copper Mine in NSW from US-based Quintana MH Holding Co LLC for up to A$22.7M in cash (US$1m), shares (US$8m), and deferred payments (US$8m)1 plus a 2% NSR royalty on production • Extensive on-site infra
Slide 5: Table of Contents
5 Table of Contents Section 1. Overview and Transaction Summary 2. Mineral Hill Overview 3. Transaction Overview 4. Misima Gold Project 5. Additional Information on Mineral Hill www.kingstonresources.com.au I ASX: KSN
Slide 6: Overview and Transaction Summary
6 1 Overview and Transaction Summary www.kingstonresources.com.au I ASX: KSN
Slide 7: Kingston set to become a gold producer with the Mineral Hill acquisition
7 Introduction Kingston set to become a gold producer with the Mineral Hill acquisition Acquisition Value-accretive Kingston to acquire the Transaction delivers immediate Mineral Hill Mine, 65km north of production and cash-flow, Condobolin in NSW from US-based extensive infrastructure at a Quintana
Slide 8: The next ASX gold producer
8 Transaction Overview The next ASX gold producer Transaction Overview Funding & Shareholder Support • Binding agreement to acquire the Mineral Hill Mine from US-based • Acquisition funded via: Quintana MH Holding Co LLC for up to A$22.7M in cash, shares, and • A$14.0M single tranche placement to in
Slide 9: Delivering on-strategy
9 Transaction Overview Delivering on-strategy • Producing asset delivering immediate cash generation Production • Complements the +15 year mine life at Misima • Multiple gold and copper exploration targets in the Cobar Basin Exploration • Under-explored asset with the last major drill program in the
Slide 10: Super-charging our growth strategy in the Asia-Pacific region
10 A Strong, Diversified Platform for Growth Super-charging our growth strategy in the Asia-Pacific region Misima (100%) PNG 1 • Gold & Silver • DFS underway, targeting +130,000oz pa • Open pit, brownfields development • Reserves - 1.35Moz Au & 6.5Moz Ag • Resources - 3.8Moz Au & 22.1Moz Ag + Minera
Slide 11: Mineral Hill Overview
11 2 Mineral Hill Overview www.kingstonresources.com.au I ASX: KSN
Slide 12: Established gold and copper mine in the Cobar Basin
12 Mineral Hill Mine – Overview Established gold and copper mine in the Cobar Basin Location 516km W of Sydney NSW in Cobar Basin Ownership 100% Tenement package 20 ML’s (4.85km2) & 2 EL’s (335km2) Reserves1 71,163 Au oz Resources1 469,217 Au equiv oz (38% Cu, 35% Au) 2 Orebody Low-sulphidation epit
Slide 13: Extensive infrastructure base provides a platform for growth
13 Mineral Hill Mine – Existing Infrastructure Extensive infrastructure base provides a platform for growth Process Facilities • Independent plant valuation $74m, Fine Ore Bins Grinding Circuit Two Stage including recent refurbishments totalling Crusher $6m for tailings processing Workshop • CIL cir
Slide 14: Production from tailings already underway
14 Mineral Hill Mine – Immediate Gold Production Production from tailings already underway • Ore Reserve 1.81Mt @ 1.13g/t Au1, recoverable 42,600oz • Target production of 40,000oz over 29 months at AISC A$1550 - 1650/oz ✓ Project approvals April 2021 TSF1 ✓ Plant upgrades complete June 2021 ✓ Wet co
Slide 15: Attractive commodity base with significant growth potential
15 Mineral Hill Mine – Resources & Reserves Attractive commodity base with significant growth potential Gold equivalent resource Zinc 7% Reserves by commodity Silver Deposit Kt Au (g/t) Ag (g/t) Au (Koz) Ag (Koz) 9% TSF 1,810 1.13 43 Copper Pearse 83 5.12 85 14 227 38% Pearse North 179 2.5 21 15 119
Slide 16: Outstanding near-mine exploration
16 Mineral Hill Mine – Near-Mine Exploration Missing Link Outstanding near-mine exploration1 8.0m @ 9.13g/t Au & 5.6g/t Ag 21.0m @ 5.41g/t Au & 0.6g/t Ag & 1.28% Cu Pearse North 21.0m @ 2.41g/t Au & 0.6g/t Ag 15.6m @ 13.30g/t Au, 114g/t Ag 22.1m @ 5.30/t Au & 1.6g/t Ag 17m @ 4.48g/t Au, 8.7g/t Ag 20
Slide 17: Southern Ore Zone & Parkers Hill
17 Mineral Hill Mine – Production opportunities Southern Ore Zone & Parkers Hill Long Section of SOZ • Extensive development in place at SOZ underground • Open pit potential at Parkers Hill • Resource: 1.78Mt @ 1.79g/t Au, 18g/t Ag, 1.2% Cu, 1.2% Pb, 1.0% Zn • Resource (JORC 2004): 1.84Mt @ 0.19g/t
Slide 18: Environmental and social licence to operate in place
18 Mineral Hill Mine – ESG Environmental and social licence to operate in place • Stakeholder engagement – excellent relationship with land-holders, community and Condobolin Chamber of Commerce • Mining Licences (ML) granted • Environment protection, cyanide and water permits in place • Environmenta
Slide 19: Aiming for new mine production from late 2023
Mineral Hill Mine – Mine Development 19 Aiming for new mine production from late 2023 underpinned by existing Resource base 2021 2022 2023 2024 2025+ Tailings production Pearse/Pearse North SOZ underground Parkers Hill open pit Jacks Hut/GD 140 Drilling Development Production • $8m exploration and d
Slide 20: The newest ASX listed gold producer
20 Kingston Resources Limited The newest ASX listed gold producer Compelling • Outstanding opportunity that delivers immediate cashflow • Established project with existing gold and copper deposits and multiple high grade investment exploration targets that can provide growth and long-term upside opp
Slide 21: Board and Management
Kingston Resources Limited 21 Board and Management MICK WILKES ANDREW CORBETT STUART RECHNER TONY WEHBY Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Mick is a seasoned mining professional Andrew is a highly experienced mining Stuart is an experienced company
Slide 22: Transaction Overview
22 3 Transaction Overview www.kingstonresources.com.au I ASX: KSN
Slide 23: Equity Raising Summary
23 Equity Raising Summary A$14M placement & A$4M Share Purchase Plan Offer Size and Structure • A$14 million institutional placement (“Placement”) and A$4 million Share Purchase Plan (“SPP”) • The Placement will be an unconditional single tranche placement to issue 70 million shares at A$0.20 per sh
Slide 24: Use of Funds
24 Use of Funds Funding will support Kingston’s transition from a developer into Australia's next gold producer and will consist of: 1. $1.3m upfront consideration for the purchase of the Mineral Hill Mine - Proceeds of this equity raising will be used in conjunction with existing cash reserves to f
Slide 25: Proforma Capital Structure
25 Proforma Capital Structure Current Pro-Forma Shareholder Structure (Pre-Transaction) Share Price1 $0.24 $0.24 Shares on Issue 286.2M 430.9M Farjoy, 5% Market Capitalisation $68.7M $103.4M JP Morgan Nominees, 8% Enterprise Value $63.7M $88.4M Cash2 $5.0M2 $15.0M Winchester Investments, 12% 12 mont
Slide 26: Indicative Transaction Timeline
26 Indicative Transaction Timeline EVENT DATE Announcement of Transaction and Completion of Placement 18 November 2021 Notice of Meeting dispatched 19 November 2021 Share Purchase Plan opens 22 November 2021 Settlement of new shares issued under Placement 24 November 2021 Allotment of new shares iss
Slide 27: Misima Update
27 4 Misima Update www.kingstonresources.com.au I ASX: KSN
Slide 28: PNG a world class geological setting
28 Misima Gold Project PNG a world class geological setting MISIMA PROJECT 600km from Port Moresby 6 SIMBERI St Barbara Moz 66 DFS underway VISION Moz LIHIR Newcrest Mining New mid-tier gold leader FRIEDA RIVER 17 Moz PanAust KAINANTU 24 PORGERA 2 K92 Mining 23 Moz PANGUNA Moz Barrick Gold Moz OK TE
Slide 29: Misima Pre-Feasibility & Ore Reserve
29 Misima Gold Project Misima Pre-Feasibility & Ore Reserve 1 3.8Moz Gold 22.1Moz Silver Resource Resource 1.35Moz Gold 6.5Moz Silver Ore Reserve Ore Reserve Misima: the next 130Kozpa Production low-cost, large-scale gold at AISC A$1,159/oz, $822m pre-tax NPV with producer in the 17-year life of min
Slide 30: Misima Definitive Feasibility Study & Approvals Update
30 • Misima Gold Project Definitive Feasibility Study (DFS) underway: • Metallurgical testing complete • Geotechnical program underway • Detailed site survey complete • Major engineering packages underway Misima Definitive • Resource update complete in September 2021, 39% increase Feasibility Study
Slide 31: Umuna Deposit: 3.6Moz Resource
31 Misima Gold Project Umuna Deposit: 3.6Moz Resource1 Umuna Resource: 158Mt @ 0.70g/t Au, 4.1g/t Ag Exceptional upside potential: • 59% of Resource in Indicated classification (2.4Moz) • Resource is open with outstanding potential to grow • Shallow drilling, with average hole depth of ~119m and onl
Slide 32: Misima Exploration Strategy
32 Misima Gold Project Misima Exploration Strategy • Current Misima Resource is open at depth and drill-constrained • Exploration focus remains on near-surface mineralisation, with key exploration targets including: • Abi: Follow-up discovery hole GDD0441 ► 23.6m @ 2.91g/t Au from 7.4m, incl. 13.5m
Slide 33: Community Support: The Key to Success
33 Misima Gold Project Community Support: The Key to Success Misima Councillors’ meeting 130-year history of mining experience Skilled resident workforce, with +100 FIFO Misima residents Strong local support of Kingston’s program, residents keen to see mine re-open Community development roadmap in p
Slide 34: Additional Information on Mineral Hill
34 5 Additional Information on Mineral Hill www.kingstonresources.com.au I ASX: KSN
Slide 35: First-class exploration footprint in the Cobar Basin
35 Mineral Hill Mine – Regional Exploration First-class exploration footprint in the Cobar Basin Highly prospective regional geology setting • Mineral Hill lies within a north to north-west trending regional fault zone along the eastern margin of the Cobar Basin which hosts a number of gold and copp
Slide 36: $8M exploration budget to drive Resource growth
36 Mineral Hill Mine – Aggressive Exploration Program $8M exploration budget to drive Resource growth Priority 1 Priority 2 PEARSE NTH Priority 2 JACKS HUT Au-Ag, Open Pit MISSING LINK Update Resource & Au-Cu, Open Pit Reserves Au–Cu, Open Pit Priority 2 - GD140 Au-Cu, Open Pit & Underground Priorit
Slide 37: Southern Ore Zone (Cu, Au, Zn, Pb, Ag)
37 Mineral Hill Mine - SOZ Southern Ore Zone (Cu, Au, Zn, Pb, Ag) Target: Cu-Au-Zn-Pb-Ag; Sulphide Mining Method: Underground, long hole open stope Significant drill intersections1: • 37.7m @ 2.2g/t Au, 0.9% Cu, 69.8g/t Ag, 1.7% Pb, 0.4% Zn from 12mdh - KUSOZ072A • 50.7m @ 1.28g/t Au, 2.2% Cu, 112.9
Slide 38: Southern Ore Zone (Cu, Au, Zn, Pb, Ag)
38 Mineral Hill Mine - SOZ Southern Ore Zone (Cu, Au, Zn, Pb, Ag) • Series of stacked polymetallic lodes A, B, C, D, E, F, G, H • En-echelon mineralised lodes as breccias and shears • General metal zonation of lead-zinc at higher levels grading to high gold-copper at lower levels • Each lode has a d
Slide 39: Pearse Corridor (Au, Ag)
39 Mineral Hill Mine - Pearce Pearse Corridor (Au, Ag) Target: Au-Ag; Oxide & Sulphide Targets Mining Method: Open Pit Significant drilling intersections1: Surface drilling Pearse • 32m @ 2.15g/t Au, 172.5g/t Ag from 91m - KMHRC054 Pearse Nth • 23m @ 6.49g/t Au, 296g/t Ag from 91m - KMHRC029 Pearse
Slide 40: Pearse Corridor (Au, Ag)
40 Mineral Hill Mine - Pearce Pearse Corridor (Au, Ag) • Pearse corridor is defined by prominent geochemical anomalism (As–Sb–Au) in soils partially masked by recent cover • Pearse and Pearse North both exhibit strong structural controls • Potential exists for structural intersections and ‘offsets’
Slide 41: Jacks Hut (Cu, Au)
41 Mineral Hill Mine - Jacks Hut Jacks Hut (Cu, Au) Target: Cu-Au; Oxide & Sulphide Mining Method: Open Pit • Jacks Hut produced 705,067t of ore at 0.74% Cu & 6.76 g/t Au for 11,913t Cu and 80,256 oz Au between 1993 and 1999 • Previous review of historical exploration data indicated that the Jacks H
Slide 42: Missing Link (Cu, Au)
42 Mineral Hill Mine - Missing Link Missing Link (Cu, Au) Target: Au-Ag; Shallow oxide ± Sulphide Mining Method: Open Pit Significant drilling intersections1: • 8.0m @ 9.13g/t Au, 5.6g/t Ag from 22mdh - GMH27 • 21.0m @ 5.3g/t Au, 1.6g/t Ag, 1.28% Cu from 58mdh - KMHRC138 • 21.0m @ 2.41g/t Au, 0.6g/t
Slide 43: Parkers Hill (Cu, Au, Pb, Zn, Ag)
43 Mineral Hill Mine - Parkers Hill Parkers Hill (Cu, Au, Pb, Zn, Ag) Target: Cu-Au-Pb-Zn-Ag; Sulphide Mining Method: Open Pit Significant drilling intersections1: • 31.0m @ 0.9% Cu, 0.6% Pb, 0.7% Zn, 5.0g/t Ag, 0.8g/t Au from 105m - KMHRC148 • 46.2m @ 0.82% Cu, 1.42 % Pb, 0.9 % Zn, 12.2g/t Ag, 0.81
Slide 44: GD140 (Au)
44 Mineral Hill Mine - Parkers Hill GD140 (Au) Target: Au; Oxide & Sulphide Mining Method: Open Pit • Gold mineralisation is associated with quartz veining < 25cm thick with low sulphide content • Gold occurs as free gold not intergrown or included in sulphides Significant drilling intersections1: •
Slide 45: Attractive commodity base with significant growth potential
45 Mineral Hill Mine – Resources & Reserves Attractive commodity base with significant growth potential Measured Resource Inventory Au Ag Cu Pb Zn Au Ag Cu Pb Zn Total Reserve Inventory Proved Probable Deposit kt (g/t) (g/t) % % % (koz) (koz) (kt) (kt) (kt) Au Ag Au Ag Au Ag Au Ag Au Ag Au Ag Pearse
Slide 46: Au Equivalent Calculation Metrics
Mineral Hill Mine – Resources & Reserves 46 Au Equivalent Calculation Metrics 1. Au Eq conversion factors are calculated by dividing price/unit for each commodity (Ag/oz, Cu/t, Pb/t, Zn/t) by the price/oz of gold. 2. Recoveries based on historical production (2010-2016) as well as Gold Equivalent Fo
Slide 47: Misima Resources & Reserves
47 Misima Gold Project – Resources & Reserves Misima Resources & Reserves Indicated Resource Inventory Misima Resources Total Au Ag C/O Au Ag Au Ag C/O Au Ag Deposit Mt (g/t) (g/t) (Moz) (Moz) Deposit Mt (g/t) (g/t) (Moz) (Moz) Umuna 93.5 0.78 4.3 0.3 2.4 13.1 Umuna 157.6 0.7 4.1 0.3 3.6 20.5 Ewatin
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