Lupaka Gold Corp. · TSXV:LPK
Lupaka Gold — Merger or Acquisition (September 2012)
27 slides from Lupaka Gold's merger presentation, September 2012
Slide 1: Lupaka Gold Corp. & Andean American Gold Corp.
LUPAKA GOLD CORP. & ANDEAN AMERICAN GOLD CORP. Merger to Create Peru-Focused Gold Explorer | September 2012
Slide 2: Important Cautionary Statements
IMPORTANT CAUTIONARY STATEMENTS No securities commission or similar authority in Canada has reviewed or in any way passed upon this presentation, and any representation to the contrary is an offence. No information in this presentation shall constitute an invitation to invest in Lupaka Gold Corp. ("
Slide 3: Important Cautionary Statements
IMPORTANT CAUTIONARY STATEMENTS This document uses the terms "measured resources", "indicated resources" and "inferred resources". Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resou
Slide 4: Merger to Create Peru-Focused Gold Explorer
MERGER TO CREATE PERU-FOCUSED GOLD EXPLORER Creating a leading Peru-focused exploration company with a combined Measured & Indicated resource of 2.1M Au Eq. ounces1, with an additional 0.9M Au Eq. ounces1 in the Inferred category Geographic balance and diversification through an asset base sprea
Slide 5: Transaction Summary
TRANSACTION SUMMARY Consideration 0.245 shares of Lupaka for each share of Andean American Premium of 21% based on the 20-day vwap prices respectively Lupaka Shareholders to own 54.7%, Andean American Shareholders to own 45.3% of MergeCo Structure Plan of Arrangement Share for share exchan
Slide 6: Pro-Forma Capitalization
PRO-FORMA CAPITALIZATION Combined Lupaka Andean American Company Basic Shares 44,762,451 150,976,810 81,751,769 FD Shares 55,876,118 160,326,810 95,156,186 Market Cap $38.0M $29.4M $69.4M Cash* $3.5M $14.9M $18.4M Investments $0.0M $8.3M $8.3M M&I AuEq 1,145 967 2,112 Resources (koz)** Inferred AuEq
Slide 7: Transaction Highlights
TRANSACTION HIGHLIGHTS Attractive Premium Premium of 21% to AAG based on the 20-day VWAP prices respectively High Growth Continues Lupaka strategy of accretive growth through acquisitions Acquisition of a strong balance sheet, increasing cash position to approximately $18M* giving MergeCo stre
Slide 8: Resource Growth
RESOURCE GROWTH Proven management Gold Equivalent Resource Estimates Growth team to build ounces 2012 Crucero Resource AAG M&I update based on AAG Inferred 15,380m to date LPK M&I drilling LPK Inferred 8,000m 2012 drill program at Crucero 0.97 MMoz began in May to test resource expansion on 0.
Slide 9: Board of Directors
BOARD OF DIRECTORS Gordon Ellis (P.Eng, MBA) Former owner/manager of a geophysical exploration consulting firm with Chairman over 40 years experience. Eric H. Edwards Geologist with over 25 years in the mining industry. Most recently served President, CEO & Director as CFO of Andean Resources (sold
Slide 10: Management
MANAGEMENT Eric H. Edwards Geologist with over 25 years in the mining industry. Most recently President, CEO & Director served as CFO of Andean Resources (sold to Goldcorp in December 2010 for C$3.6 billion) and CEO of Ventura Gold Corp. (sold to International Minerals in January 2010 for C$65 milli
Slide 11: Why Peru?
WHY PERU? Outstanding mineral exploration potential New government supportive of current economic model Long history of stable mineral rights and permitting law World class discoveries: Yanacocha, Pierina, Antamina World mining heavyweight jurisdiction(1) #1 in Silver #2 in Copper #5
Slide 12: Crucero, Peru
CRUCERO, PERU Gold Resource Estimates Growth(1) 100% ownership following consolidation in January 2012 Inferred Updated resource estimate announced Indicated March 2012, outlining 1.14 Moz M&I plus an additional 0.65 Moz Inferred starting from surface(1) 0.65 MMoz 0.41 MMoz Mesothermal gold de
Slide 13: Crucero Mineralization & Upside
CRUCERO MINERALIZATION & UPSIDE Regional ground magnetics (2011) N A-7 A-8 A-6 A-2 A-5 A-1 A-3 A-4 A-11 A-10 A-9 A-1 Zone mineralized envelope outlined on 5,500 ha claim area surface photo (0.4 g/t cut-off) 11 total target areas defined by geology, Visible outcrop within red outline is >2.0
Slide 14: Crucero A-1 Drill Plan 2012
CRUCERO A-1 DRILL PLAN 2012 A-1 Zone 4000m drill plan DDH-19, DDH- 53, DDH-54, DDH-55 first holes completed for 2012 Drill testing confirms open at depth and to the North 14
Slide 15: Invicta, Peru
INVICTA, PERU 100% ownership Updated resource estimate announced April 2012, outlining 967 koz AuEq M&I plus an additional 236 koz AuEq Inferred at a 1.30 g/t AuEq cut-off* Multi-phased mesothermal and later epithermal Au-Ag and base metal mineralization found in veins and stockwork with stron
Slide 16: Southern Legacy: AntaKori, Peru
SOUTHERN LEGACY: ANTAKORI, PERU Business combination between Sinchao Metals Corp. and Southern Legacy Minerals Ltd. closed on June 29, 2012 MergeCo own ~17% of the new Southern Legacy Minerals Ltd. Consolidation of the AntaKori Cu-Au Project, located in the Cajamarca district of Northern Peru
Slide 17: World Class Cajamarca District
WORLD CLASS CAJAMARCA DISTRICT LA GRANJA (Rio Tinto 100%) Stage: Pre-Feasibility (Target 2017 Production) Inferred Resource: 2.8Bt at 0.51% Cu (31.5B lbs Cu) TANTAHUATAY (Southern Copper 44% , Buenaventura 40%) Stage: Ramp-up (46,200 ounces produced in 2011) Non 43-101 Resource: 500Mt at 0.31 g/t Au
Slide 18: Looking Forward – 2012/2013 Objectives
LOOKING FORWARD – 2012/2013 OBJECTIVES Crucero A-1 Zone expansion (4,000m drilling); first 2012 assay results expected Q3 2012 Chaska exploration (4,000m drilling); first assay results expected Q3 2012 Updated metallurgical results expected Q4 2012 Category 2 exploration permit for A-1 expec
Slide 19: Contact
CONTACT LUPAKA GOLD CORP. ANDEAN AMERICAN GOLD Eric Edwards David Rae President, CEO & Director President, CEO & Director gold@lupakagold.com investors@aaggold.com 604-681-5900 416-368-9500 www.lupakagold.com www.aaggold.com
Slide 20: Appendix
APPENDIX
Slide 21: Crucero Resource
CRUCERO RESOURCE Crucero 43-101 Resource (March 2012) Resource estimate completed by Wardrop Engineering based on drilling completed to the end of December 2011 Current resource estimate lies within the A-1 Zone only INDICATED INFERRED Cutoff (g/t) No Cap Capped No Cap Capped Tonnes Tonnes Au
Slide 22: Crucero Community Relations
CRUCERO COMMUNITY RELATIONS On-site community relations staff Local work force Peruvian professional staff Long history of successful permitting Permanent year-round local presence Building long-standing commitment to sustainable economy Company Programs Staff veterinarian and medic
Slide 23: Invicta Resource
INVICTA RESOURCE Invicta 43-101 Resource (April 2012) completed by SRK Consulting GRADE CONTAINED Tonnes Category AuEq Au Ag Cu Pb Zn AuEq Au Ag Cu Pb Zn (kt) (g/t) (g/t) (g/t) (%) (%) (%) (koz) (koz) (koz) (Mlbs) (Mlbs) (Mlbs) M&I 5,827 3.89 2.39 18.29 0.46 0.28 0.34 729 447 3,427 58,967 36,361 4
Slide 24: Invicta Regional Geology & Upside
INVICTA REGIONAL GEOLOGY & UPSIDE Opportunities: Possible extension of Atenea vein at depth towards Pucamina Prospect area for parallel veins 24
Slide 25: Invicta Community Relations
INVICTA COMMUNITY RELATIONS Project surface rights Agreement in place with the community of Santo Domingo de Apache, covering 153 ha of the mine area Negotiations with the communities of Paran and Lacsanga are ongoing 25
Slide 26: AntaKori Resource
ANTAKORI RESOURCE AntaKori 43-101 Resource (July 2012) completed by Scott Wilson Consulting Inc. GRADE CONTAINED Resource Tonnes Category Type (kt) CuEq Au Ag Cu Pb Zn Mo CuEq Au Ag Cu Pb Zn Mo (%) (g/t) (g/t) (%) (%) (%) (ppm) (Mlbs) (koz) (koz) (Mlbs) (Mlbs) (Mlbs) (Mlbs) In-pit 125,388 0.59 0.2
Slide 27: Land Claims at AntaKori
LAND CLAIMS AT ANTAKORI Strategic value to Buenaventura (adjacent to Tantahuatay) Newmont (Yanacocha) & Goldfields (Cerro Corona) also operating in region (gold focused) Buenaventura may see AntaKori as a strategic deposit adjacent to its current operations; takeover potential is high Lack of