Aic Mines Limited · ASX:A1M
Aic Mines — Merger or Acquisition (October 2021)
28 slides from Aic Mines's merger presentation, Oct 8, 2021
Slide 1: Eloise Copper Mine Acquisition and Capital Raise
For personal use only Eloise Copper Mine Acquisition and Capital Raise 8 October 2021
Slide 2: Important Information
Important Information This presentation has been prepared by AIC Mines Limited (“the Company” or “AIC Mines”) to provide summary information about AIC Mines and its activities at the date of this presentation. The information contained in this For personal use only presentation does not purport to b
Slide 3: Transaction Overview
Transaction Overview As announced on 31 August 2021, AIC has entered into a binding For personal use only agreement to acquire the Eloise Copper Mine1 – a high-grade operating underground mine located in North Queensland. Purchase price consists of: $20M in shares issued to the vendor – FMR In
Slide 4: A transformational acquisition
A transformational acquisition Creates a new junior ASX copper miner with strong free cashflow For personal use only to add value through exploration success, resource growth, Eloise operational reliability and regional consolidation. A great time to be a copper producer Copper Strong demand and pri
Slide 5: Eloise Copper Mine Overview
Eloise Copper Mine Overview For personal use only Location 60km SE of Cloncurry and 155km ESE of Mt Isa Tenements Granted mining leases covering 505.9 ha Mineralisation Iron Sulphide Copper Gold (ISCG). Mineral Resources 65,500t Cu and 60,100oz Au Ore Reserves 30,300t Cu and 26,700oz Au The upper le
Slide 6: Eloise Copper Mine Geology
Eloise Copper Mine Geology For personal use only The Eloise deposit is hosted by a sequence of Proterozoic basement lithologies concealed beneath 60 m of flat-lying Mesozoic sediments. The host rocks predominantly comprise arenitic metasediments and amphibolites. The main copper-bearing sulphi
Slide 7: Eloise Mining and Processing
Eloise Copper Mine Mining and Processing Production History Units FY20 FY21 For personal use only Ore Milled t 499,719 622,795 Operations consist of an underground mine accessed via decline. The upper levels are mined by longhole open stoping Cu feed grade % 1.74 1.88 and the deep levels by sublev
Slide 8: Ore Reserves
Eloise Copper Mine Ore Reserves For personal use only Current ore reserves total 1.4Mt containing 30,300t of copper and 26,700oz of gold1. The mine was commissioned in 1996 and has since mined approximately 12.5Mt of ore grading 2.8% Cu and 0.8g/t Au to produce 339,000t Cu and 167,000oz Au in co
Slide 9: Mineral Resources
Eloise Copper Mine Mineral Resources For personal use only Current mineral resources total 2.7Mt containing 65,500t of copper and 60,00oz of gold1. There are drill holes containing mineralisation in the near- mine areas, however, incomplete underground surveying means that the void model is not
Slide 10: Significant exploration upside
Eloise Copper Mine Significant exploration upside For personal use only AIC’s exploration strategy for Eloise will target both extensions to the known resource areas and the discovery of new lodes. Outside of the defined Mineral Resource area, there are ten zones identified as priority drilling
Slide 11: Significant exploration upside
Eloise Copper Mine Significant exploration upside For personal use only The exploration potential of the Eloise tenement holding was one of the main features that attracted AIC to the acquisition. AIC is planning to increase both surface and underground drilling and is confident of significantly
Slide 12: Growth Strategy
Growth Strategy A disciplined acquisition strategy For personal use only Build a portfolio of mines through exploration, development and acquisition Our strategy is to target late-stage Australian gold and copper projects where we can add value through exploration and development. Portfolio approa
Slide 13: Next steps
For personal use only Next steps 1. Shareholder Approval 2. Capital Raising 13
Slide 14: Shareholder Approval
Shareholder Approval For personal use only Indicative Timetable1 Date The Transaction will constitute a change to the nature and scale of the Company's business and will require Opening Date of the Capital Raising 7 October 2021 shareholder approval under Chapter 11 of the ASX Listing Rules. Gener
Slide 15: Capital Raising
Capital Raising $30M capital $40M capital Source of funds ($M) Use of funds raise raise ($M) ($M) For personal use only AIC Cash at Bank 1 Eloise Acquisition – Cash 3.9 5.0 5.0 AIC will undertake a minimum Consideration Capital Raising of $30M and up to Capital Raising (Min – Max) 30.0 - 40.0 Work
Slide 16: Company Overview
Company Overview An experienced management team focused on building a new Australian mid-tier copper For personal use only and gold miner through exploration, development and acquisition ASX Code A1M Board of Directors Share Price 1 25c Josef El-Raghy Chairman Pro Forma Position – Post Transaction A
Slide 17: Current Projects
Current Projects Exploring for gold and copper in WA For personal use only Lamil Joint Venture 1,280km2 tenement package located 30km west of the world- class Telfer Gold-Copper Mine Displays all the ingredients required to host a Telfer-style deposit Maiden drilling program completed December
Slide 18: Lamil Project
Lamil Project Drilling program underway For personal use only Maiden drilling program in 20201 confirmed: Presence of prospective basement lithologies including metasedimentary rocks (quartz sandstones, siltstones, quartzite) and mafic intrusives (gabbro and dolerite) Sulphide minerals includi
Slide 19: Marymia Project
Marymia Project Drilling program underway For personal use only 5,000m RC drilling program commenced September 2021 focused on Copper Hills and Middle Island1. Copper Hills The Copper Hills Belt makes up the northern third of the Marymia Project area. It is considered to be a preserved portion
Slide 20: Investment Thesis
For personal use only Investment Thesis Highly credentialed team. A transformational acquisition at Eloise – creates a new junior copper miner with strong free cashflow to add value through exploration success, resource growth, operational reliability and regional consolidation. A great time t
Slide 21: Appendix: Eloise Mineral Resource & Ore Reserve
For personal use only Appendix Eloise Mineral Resource & Ore Reserve 21
Slide 22: Eloise Mineral Resource and Ore Reserve
Eloise Mineral Resource and Ore Reserve Eloise Mineral Resources and Ore Reserves are reported and classified in accordance with the JORC Code (2012). For personal use only Further information is provided in the ASX announcement released by AIC Mines “Transformational Acquisition - AIC to Acquire th
Slide 23: Appendix: Risk Factors
For personal use only Appendix Risk Factors 23
Slide 24: Key Risks
Key Risks Investors should be aware that if the Acquisition proceeds and Completion occurs, the Company will be changing the nature and scale of its activities and will be subject to additional or increased risks. Accordingly, an investment in the Company should For personal use only be considered s
Slide 25: Key Risks: Eloise Mine
Key Risks Specific risks applicable to operating the Eloise Mine For personal use only Integration Risk The Acquisition may consume a large amount of management time and attention, and it may fail to meet strategic objectives or achieve expected financial and operational performance targets. Histori
Slide 26: Key Risks: General
Key Risks General Risks Related to an Investment in the Company For personal use only Discretion in Use of Capital The Board and the Company’s management have discretion concerning the use of the Company’s capital resources as well as the timing of expenditures. If they are not applied effectively,
Slide 27: Key Risks
Key Risks Regulatory Risk For personal use only The availability and rights to explore and produce copper concentrate and precious metals, as well as operational profitability generally, can be affected by changes in government policy that are beyond the control of the Company. Health and Safety Ris
Slide 28: Contact
Contact For personal use only P: +61 (8) 6269 0110 E: info@aicmines.com.au A: A8, 435 Roberts Rd, Subiaco, WA, 6008 ABN: 11 060 156 452 www.aicmines.com.au 28