West African Resources Ltd · ASX:WAF
West African Resources — Merger or Acquisition (October 2021)
40 slides from West African Resources's merger presentation, Oct 26, 2021
Slide 1: West Africa's Emerging Mid-Tier Gold Producer: Capital Raising and Acquisition Presentation
Not for Release to US wire services or distribution in the United States WEST AFRICA’S EMERGING MID -TIER GOLD PRODUCER WAF AIMS FOR +400KOZPA GOLD PRODUCTION BY 2025 CAPITAL RAISING AND ACQUISITION PRESENTATION 26 OCTOBER 2021
Slide 2: Important Notice
IMPORTANT NOTICE . Disclaimer This document is not a prospectus, product disclosure statement or other offering document under The following notice and disclaimer apply to this presentation (Presentation) and you are therefore Australian law or any other law, and will not be lodged with the Australi
Slide 3: Important Notice
IMPORTANT NOTICE . Forward-looking statements and forecasts This Presentation contains certain “forward-looking statements” and comments about future the control of WAF. Except as required by law or regulation WAF undertakes no obligation to finalise, check, matters. Forward-looking statements can g
Slide 4: Important Notice
IMPORTANT NOTICE . Disclaimer Neither Euroz Hartleys Limited or Sprott Capital Partners, a division of Sprott Private Wealth LP (the Joint Lead Managers) nor any of their or the Company’s respective advisers or any of their respective affiliates, related bodies corporate, directors, officers, partne
Slide 5: West Africa's Emerging Mid-Tier Gold Producer
WEST AFRICA’S EMERGING MID-TIER GOLD PRODUCER WA F A I M S F O R + 400K O Z PA G O L D PR O D U C TI ON B Y 2 0 2 5 Kiaka Gold Project Acquisition ▪ WAF has entered into definitive agreements to acquire 90%1 of the Kiaka Gold Deposit (Kiaka) in Burkina Faso for US$100 million in staged cash and shar
Slide 6: Transaction Overview
TRANSACTION OVERVIEW ee
Slide 7: Transaction Overview
TRANSACTION OVERVIEW WA F A C Q U I R I N G 6 . 8 M o z K I A K A G O L D P R O J E C T ▪ Executed definitive agreements to acquire 90%1 of Kiaka from B2Gold Corp (BTO.TSX) (B2Gold) and their project partner, GAMS-Mining F&I Ltd (GAMS) comprising cash, share and royalty payments: – US$100m in staged
Slide 8: Kiaka Overview
KIAKA OVERVIEW WA F + 4 0 0 K O Z PA P O T E N T I A L B Y 2 0 2 5 ✓ 6.8Moz gold Mineral Resource (JORC 2012) ✓ More than 190,000m of RC and diamond core drilling has been completed on project to date ✓ Permitted; granted mining and environmental permits ✓ Located 45 km south of Sanbrado, significan
Slide 9: Kiaka Overview: A Deposit of Scale 6.8Moz Gold
KIAKA OVERVIEW A DEPOSIT OF SCALE 6.8MOZ GOLD Resource Highlights ▪ Indicated Resource of 5.24Moz gold − 169.3Mt at 1.0 g/t Au ▪ Inferred Resource of 1.54Moz gold − 51.6Mt at 0.9 g/t Au ▪ Mineralization extends +2km along strike, up to +400m wide and up to 600m deep; ▪ Mineralization open at depth a
Slide 10: Kiaka Gold Project
KIAKA GOLD PROJECT A DEPOSIT OF SCALE 6.8MOZ GOLD Significant drilling results from the project: – KDH339: 180m at 1.9 g/t Au from 355m – KDH181: 206m at 1.6 g/t Au from 313m – KDH05: 208m at 1.6 g/t Au from 30m – KRD74: 132m at 2.3 g/t Au from 23m – MET48: 166m at 1.7 g/t Au from 199m – KDH170: 216
Slide 11: Kiaka Overview - Cross Section 5250N
KIAKA OVERVIEW A DEPOSIT OF SCALE - CROSS SECTION 5250N 11
Slide 12: Kiaka Overview - Cross Section 5450N
KIAKA OVERVIEW A DEPOSIT OF SCALE - CROSS SECTION 5450N 12
Slide 13: Kiaka Overview - Cross Section 5600N
KIAKA OVERVIEW A DEPOSIT OF SCALE - CROSS SECTION 5600N 13
Slide 14: Indicative Kiaka Development Timeline
INDICATIVE KIAKA DEVELOPMENT TIMELINE WA F A I M S F O R + 4 0 0 K O Z PA G O L D P R O D U C T I O N B Y 2 0 2 5 Key Goals ▪ WAF to redeploy experienced feasibility and development team of staff and consultants that delivered Sanbrado 6 months ahead of schedule and US$20m under budget ▪ Award EPCM
Slide 15: Sanbrado Cash Flow to Underpin Kiaka Development
KIAKA GOLD PROJECT S A N B R A D O C A S H F L O W TO U N D E R P I N K I A K A D E V E L O P M E N T Sanbrado Pre-tax Cumulative Cashflow at US$1,700/oz gold 1,400 ▪ Sanbrado to generate significant free cash over the next 4 years 1,200 ▪ +US$1Bn pre-tax free cashflow 2021 – 2025 expected at US$170
Slide 16: Equity Raising Details
EQUITY RAISING DETAILS 7 AFRICAN
Slide 17: Placement and SPP Overview
PLACEMENT AND SPP OVERVIEW ▪ A non-underwritten placement of up to approximately 101.112 million New Shares, representing 11.4% of the existing shares on issue, via a two tranche placement to raise gross proceeds of up to approximately A$126.39 million (Placement). − Tranche 1: An unconditional plac
Slide 18: Sources and Uses of Funds
SOURCES AND USES OF FUNDS Sources1 A$M Uses1 A$M Cash at bank2 144.8 Taurus principal repayment 88.1 Placement proceeds3 Up to 126.4 Upfront Kiaka cash deposit and payment 37.8 SPP4 10.0 Final cash payment of the Toega acquisition 13.5 Exploration Programs and Working Capital Up to 141.7 including t
Slide 19: Proforma Capital Structure
PROFORMA CAPITAL STRUCTURE Transaction Units Current1,2 Pro-forma4 Adjustments3,4 Ordinary shares on issue M 883.9 135.8 1,019.7 Share Price A$/share 1.395 1.25 1.25 Indicative Market Capitalisation A$M 1,233.0 169.8 1,274.7 Senior Debt A$M 88.1 (88.1) - Cash A$M 144.8 (3.1) 141.7 Deferred Considera
Slide 20: Indicative Equity Raising Timetable
INDICATIVE EQUITY RAISING TIMETABLE Placement Date1 Trading halt and announcement of transaction Tuesday, 26 October 2021 Shares re-commence trading Thursday, 28 October 2021 Settlement of Tranche 1 Placement New Shares Wednesday, 3 November 2021 Expected trading of Tranche 1 Placement New Shares Th
Slide 21: West African Resources Overview
WEST AFRICAN RESOURCES OVERVIEW 21
Slide 22: West Africa's Emerging Mid-Tier Gold Producer
WEST AFRICA’S EMERGING MID -TIER GOLD PRODUCER WA F A I M S F O R + 400K O Z PA G O L D PR O D U C TI ON B Y 2 0 2 5 *There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of i
Slide 23: Why West Africa?
WHY WEST AFRICA? GOLDEN POTENTIAL West Africa is one of the most attractive mining regions globally with many of the world’s leading producers 1,2 ✓ No. 1 Region for globally significant gold discoveries ✓ 2nd largest gold producing region globally ✓ 78% growth in production in the past 10 years ✓ +
Slide 24: Capital Structure
CAPITAL STRUCTURE ASX: WAF Analyst Coverage1 Total Ordinary Shares on Issue 884m Euroz Hartleys Mike Millikan Options and performance rights on issue 12.4m Macquarie Andrew Bowler Top 20 Shareholders2 60% Sprott Brock Salier Cash at 30 Sept 2021 US$94m Gold at 30 Sept 20213 US$16m Senior debt at 30
Slide 25: West African Project Locations
WEST AFRICAN PROJECT LOCATIONS 25
Slide 26: Outstanding History of Resource Growth
WEST AFRICAN RESOURCES LTD O U T S TA N D I N G H I S TO RY O F R E S O U R C E G R O W T H 14,000,000 ▪ 230% increase in Mineral Resources to 11.9Moz gold (300Mt at 1.2 g/t Au) 12,000,000 ▪ 350% increase in Measured & 10,000,000 Indicated resources now 7.6Moz gold Contained Gold Ounces (212Mt at 1.
Slide 27: Production Outlook to 2033 (Excluding Kiaka)
WEST AFRICAN RESOURCES LTD PR O D U C T ION O U T LOOK TO 2 0 3 3 ( EXC L U D I NG K I A K A ) ▪ 2021 production expected to exceed 280Koz gold at AISC of <US$800/oz 300,000 ▪ 2021 - 2023 production based on 100% Ore Reserves 250,000 ▪ Average annual production of 216,000oz gold 2021 - 2030 200,000
Slide 28: Successful Ramp Up to Exceed 2021 Guidance
WEST AFRICAN RESOURCES LTD SU C C ESSF U L R A MP U P TO EXC EED 2021 G U ID A N C E OUNCES UP AND COSTS DOWN QUARTER ON QUARTER SINCE COMMISSIONING Chart Title ▪ Six quarters of production and cost 100,000 1,250 improvement 90,000 992 ▪ Sept Q A$110m operating cashflow 80,000 957 1,000 928 70,000 ▪
Slide 29: Sanbrado Gold Operation: E & S Commitments
SANBRADO GOLD OPERATION E & S COMMITMENTS Environmental and Social Integrating sustainability into our operations with a long term view; beyond production, ENVIRONMENTAL OFFICERS beyond closure for a positive mine legacy ✓ Putting our environmental, social, health, security management system into ac
Slide 30: Sanbrado Gold Operation: Making a Positive Impact
SANBRADO GOLD OPERATION M A K I N G A P O S I T I V E I M PA C T Positive Social Impact from Sanbrado in education and health ✓Construction of infrastructure and electrification of new schools SANBRADO WAF SCHOOL community team meeting local farmers during COVID-19 global pandemic ✓Livelihood divers
Slide 31: Building a Strong Workforce
BUILDING A STRONG WORKFORCE OUR TEAM ✓ Total WAF workforce 1,270 ✓ Diversity being achieved through good employment practices ₋ 90% from Burkina Faso, 10% Expatriate ₋ Gender ₋ 60% of senior ops roles from Burkina Faso ₋ Social and ethnic backgrounds ₋ 50% of site workers from local communities ₋ Ag
Slide 32: Why Invest
WHY INVEST W E S T A F R I C A N R E S O U R C E S LT D A S X : WA F TEAM • Quality board and management team aligned with shareholders GOLD • +280,000oz gold production 2021 at AISC of <US$800/oz EXPOSURE • Aiming for +400,000ozpa gold production by 2025 • Social licence to operate through communit
Slide 33: Key Risks
KEY RISKS . Raising risks The Company intends to fund the Transaction through existing funds, the Closing Consideration Company’s analysis, there is a risk that the performance of the Company following the Transaction may be different (including in a materially adverse way) from what is reflected in
Slide 34: Key Risks
KEY RISKS . Commodity price volatility The Company’s revenues and cash flows are derived from gold. The financial performance of the Infrastructure, transportation and remoteness of operations Much of the operating supplies used in the Company’s operations are and will be required to be Company will
Slide 35: Key Risks
KEY RISKS . Country risk construction before 7 July 2022. The Transaction necessarily involves risks associated with the location of Kiaka, Toega, as well as the The Company will be required to obtain government permits to expand operations, which can be a Company’s current Sanbrado operations in Bu
Slide 36: Key Risks
KEY RISKS . COVID-19 comparison to the border regions of Burkina Faso. There can be no guarantee, however that the The global economic outlook is uncertain due to the prevailing COVID-19 pandemic, which has been security problems and instability of the border regions will not expand over time into t
Slide 37: Key Risks
KEY RISKS . Risks related to acquisitions and future growth initiatives The Company regularly identifies and assesses potential opportunities for acquisitions and growth initiatives where it considers the opportunities may create shareholder value. The Company will continue to identify and assess su
Slide 38: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS . This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be Certain Canadian income tax considerations. Prospective purchasers of the New Sh
Slide 39: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS . New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory No offering or marketing material relating to the New Shares has been, nor will be, filed with or approved by any Swiss regulatory authority or authorised review
Slide 40: West African Resources Ltd
WEST AFRICAN RESOURCES LTD WEST A F R I C A’S N EWEST U N H ED G ED G O L D PR O D U C ER w w w. w e s t a f r i c a n r e s o u r c e s . c o m A S X : WA F
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