Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Merger or Acquisition (May 2010)
19 slides from Northern Star Resources's merger presentation, May 7, 2010
Slide 1: New Beginning… Towards an Australian Resources Company
For personal use only New Beginning…..Towards an Australian Resources Company Paulsens Acquisition Presentation May 2010
Slide 2: Disclaimer: Competent Persons Statements
DISCLAIMER Competent Persons Statements The information in this announcement that relates to exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by or under the supervision of Brook Ekers, (Member AIG), who is
Slide 3: Our Vision
Our Vision… For personal use only “To build a quality mining & exploration company focused on creating profits for shareholders...”
Slide 4: Company Profile
Company Profile CAPITAL STRUCTURE For personal use only 169.8M shares on issue 112.0M options ($6.4M funding platform) Market Capitalisation $7.6M (05 May 2010) (Undiluted & 4.5 cents per share) SUBSTANTIAL SHAREHOLDERS Top 20 60% InvestMet Limited 26.3% Investmet Supporters 13.7% Dir
Slide 5: Quality Management with Strong Backing
Quality Management with Strong Backing Successful record in discovering and developing mineral resources. For personal use only Bill Beament (Managing Director) appointed 20 August 2007 th Mining Engineer with 15 years experience. Former Barminco Operations Manager for 12 mines across WA and General
Slide 6: Asset Acquisition: Paulsens Gold Mine
Asset “Acquisition” Paulsens Gold Mine For personal use only Operational Gold Mine Prime WA mining address High Grade 128,700 oz resource Stage 1 mine plan 45,000 oz $25M net profit from Stage 1 (8 months) Upside to continue production past stage 1 365km2 of regional exploration tenements Establishe
Slide 7: History – For the Record
History – “For the Record” July 2004, decline commenced For personal use only August 2004, ore reserve declared 400,000 oz June 2005, full scale production Hedged @ A$627/oz gold price until Dec 2008 2009, generated A$39M EBITDA Past mine production 1.5Mt @ 7.6g/t, 365koz (end 2009) Life of mine cas
Slide 8: Resources
Resources Voyager Zone - 314,000t @12.8g/t for 128,700 oz (Hellman & Schofield) For personal use only Indicated 204,000t @ 13.7g/t for 89,700 oz (4g/t cut-off) Inferred 110,000 @ 11.0g/t for 39,000 oz (4g/t cut-off ) Stage 1 mine plan of 45,000 oz
Slide 9: Potential to Grow – In Mine
Potential to Grow – “In Mine” Remnant resources left behind when modelled at A$627/oz For personal use only Lower Zone non-mined resources Limbs of hinge zones Top 100m of ore body has not been mined, potential additional mill feed Resources open down dip, Voyager 1 extension and Voyager 2 Repet
Slide 10: Potential to Grow – Regionally
Potential to Grow – “Regionally” Extremely unusual for no other sizeable deposit within 50km radius of the For personal use only Paulsens mine “lone soldier” Acquisition includes 365km2 of Tenements Minimum expenditure $700k Bond $480k Numerous targets: Belvedere (unclassified resource) Camp
Slide 11: Stage 1 – Pay off Acquisition
Stage 1 – “Pay off Acquisition” Details Mine Plan of 45,000 oz Stage 1 mine plan generates $25M cashflow For personal use only Take over scheduled for June 2010 Milling from June 2010 to Early 2011 Generate an ore reserve by Oct 2010 Mine 45Koz to payout all debt providers and Intrepid Mines
Slide 12: Stage 1 – Profit/Loss at A$1,200/oz
Stage 1 – Profit/Loss @ A$1,200/oz 30,000 $30 Cash flow from June For personal use only onwards is $25.1m 25,000 $25 Intrepid $14M Capital into Voyager 20,000 $20 Tonnes $ millions NST Takeover 15,000 $15 10,000 $10 5,000 $5 - $0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10
Slide 13: Stage 2 – Maintain Profitable Production
Stage 2 – “Maintain Profitable Production” Details Stage 2 - Inferred Resource 110,000t @ 11g/t for 39,000 oz Stage 2 exploration $1.25M For personal use only $5M to extend decline to bottom of stage 2 (615mRL), develop a drill platform and drill to test further down plunge for resource extensio
Slide 14: Stage 3 – Find and Develop Mine Life
Stage 3 – “Find and Develop 5 year mine life” Details Voyager 2 Extension of Paulsens mineralisation Stage 3 exploration costs $1.0M For personal use only 4 deepest holes drilled to date, results are; 28.9m @ 31.0 g/t 5.9m @ 4.4 g/t 10.3m @ 4.0 g/t 1.5m @ 4.7g/t Drill extensively from
Slide 15: Deal Structure
Deal Structure – Stage 1 (45,000oz) $27M total consideration, broken down into stages; For personal use only $15M upfront payment upon settlement Reimbursement for stage 1 capital already invested $200/oz performance based royalty payments up to 60Koz $1M for every 5,000 oz of gold sold up t
Slide 16: Financing
Financing $18-19M debt & equity facility mandated to Viridian; For personal use only $15M cash for settlement (via debt facility) $3 to 4M equity facility to fund stage 2 and/or working capital buffer Share placement capacity available for a cornerstone opportunity $6.0M of option funding avai
Slide 17: Due Diligence Team
Due Diligence Team - Quality Successful record in discovering, developing and operating mines. For personal use only Bill Beament - Managing Director Mining Engineer with 15 years experience. Former Barminco General Manager for 12 mines across WA and General Manager of Eloise Copper Mine in North Ql
Slide 18: Risk Strategy
Risk Strategy Access to “local knowledge” For personal use only NST MD has 4yr past management role association with Mine NST MD past employer (Barminco) still current mining contractor Independent verification of Mineral Resource; Completed by Hellman and Schofield Consultants Independent Fin
Slide 19: Contact: Bill Beament, Managing Director
For personal use only New Beginning…..Towards an Australian Resources Company Bill Beament – Managing Director info@nrsltd.com www.nsrltd.com Ph (08) 6241 1866
Northern Star Resources — Merger or Acquisition (May 2010) on 6ix