Slide 1: Woodlawn Zinc-Copper Project Acquisition
ASX: DVP Woodlawn Zinc-Copper Project Acquisition 1 An exceptional opportunity for shareholders • On strategy; ownership of clean future-facing metals in a Tier 1 location • Significant near-term growth potential • Highly attractive purchase price February 2022 Not for release to US wire services or
Slide 2: Important Information and Disclaimer
IMPORTANT INFORMATION AND DISCLAIMER IMPORTANT NOTICES & DISCLAIMER This investor presentation (Presentation) has been prepared by Develop Global Limited (ACN 122 180 205) (Develop or the Company). This Presentation has been prepared in relation to the Company's proposed equity raising, as described
Slide 3: Important Information and Disclaimer
IMPORTANT INFORMATION AND DISCLAIMER Past performance Prospective investors should note that past performance metrics and figures (including past share price performance of Develop) in this Presentation are given for illustrative purposes only and cannot be relied upon as an indicator of (and provid
Slide 4: Important Information and Disclaimer
IMPORTANT INFORMATION AND DISCLAIMER Disclaimer No party other than Develop has authorised or caused the issue, lodgement, submission, dispatch or provision of this Presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this Pre
Slide 5: Important Information and Disclaimer
IMPORTANT INFORMATION AND DISCLAIMER Mineral Resources and Ore Reserves Reporting It is a requirement of the ASX Listing Rules that the reporting of mineral resources and ore reserves in Australia comply with the Australasian Joint Ore Reserves Committee Code for Reporting of Mineral Resources and O
Slide 6: Important Information and Disclaimer
IMPORTANT INFORMATION AND DISCLAIMER Production Targets The information in this Presentation that relates to production targets for the Sulphur Springs Project has been extracted from the ASX Announcement titled "Sulphur Springs DFS Results and Reserve Upgrade" dated 10 October 2018. A copy of that
Slide 7: Woodlawn: A Compelling Acquisition
WOODLAWN: A COMPELLING ACQUISITION ACQUISITION INCLUDES AN UNDERGROUND MINE, NEW PROCESSING PLANT, SIGNIFICANT JORC RESERVE AND RESOURCE, ALL ESTABLISHED AT A COST OF ~A$340M • Develop has agreed to buy the Woodlawn zinc-copper mine in NSW and the extensive tenement package for $30m upfront plus suc
Slide 8: Overview of Woodlawn Project
OVERVIEW OF WOODLAWN PROJECT WOODLAWN IS A HIGH-GRADE VMS BASE METAL SYSTEM IN THE WORLD-CLASS LACHLAN FOLD BELT • 250km south-west of Sydney in NSW, Australia Location • 75km north-east of Canberra • 50km south of Goulburn Stage • Under Care & Maintenance since March 2020 • ~A$340m invested to date
Slide 9: Key Transaction Terms
KEY TRANSACTION TERMS A$30 MILLION UPFRONT CONSIDERATION WITH CONTINGENT PAYMENTS STRUCTURED TO ALIGN WITH SUCCESS • Develop proposes to acquire 100% of the shares in Heron Resources Limited (administrators appointed) (Heron), which owns the Woodlawn Project. • Develop proposes to undertake this acq
Slide 10: Strategic Rationale
STRATEGIC RATIONALE ACQUISITION CONSISTENT WITH DECARBONISATION VISION AND LEVERAGES DEVELOP’S UNIQUE CAPABILITIES Consistent with Develop’s strategy of future facing metals (Cu & Zn) in a Tier 1 jurisdiction World class geology – VMS system with significant potential for inventory growth (lense
Slide 11: History of Woodlawn
HISTORY OF WOODLAWN LONG PROFITABLE HISTORY OF HIGH GRADE OPERATIONS UNDER SIGNIFICANTLY LOWER COMMODITY PRICES Total production over 20 yrs: 13.8Mt @ 19.7% ZnEq (9.1%Zn, 1.6% Cu, 3.6%Pb) Avg Cu price in 1998 of ~A$1,055/t vs current spot of >A$13,900/t Avg Zn price in 1998 of ~A$660/t vs current sp
Slide 12: Substantial Infrastructure in Place
SUBSTANTIAL INFRASTRUCTURE IN PLACE ~$340M INVESTED TO DATE – CONSTRUCTION COMPLETED IN 2019 IsaMillTM , Reclaim and Tailings Thickeners Flotation Building Concentrate Filtration & Storage Ball Mill & Administration Classification Fine Ore Bin Assay Laboratory Screening Primary Jaw Crusher Reagent S
Slide 13: Historical Learnings
HISTORICAL LEARNINGS LEARNINGS FROM WOODLAWN’S HISTORICAL ISSUES TO BE ADDRESSED BY DEVELOP # Heron Historical Key Issues Develop Strategy / Learnings Significant cost overrun and delays on Project now constructed and infrastructure already in place 1 construction of project Development only 25m
Slide 14: Exploration Potential
EXPLORATION POTENTIAL POTENTIAL TO BECOME A LARGE MINERAL SYSTEM AKIN TO GOLDEN GROVE AND ROSEBERY • Large mineral system; multiple lenses on multiple zones – open at depth and along strike • Potential akin to Golden Grove and Rosebery • Untested compared with other VMS mines • Multiple lenses total
Slide 15: In-Mine Growth Potential
IN-MINE GROWTH POTENTIAL SIGNIFICANT POTENTIAL WITH VARIOUS UNTESTED CONDUCTORS AND OPEN LENSES • Potential for extension of known lenses and for discovery of additional lenses • Very limited step-out drilling historically • Known high-grade lenses remain open • DHEM data confirms untested conductor
Slide 16: Woodlawn Growth Strategy
WOODLAWN GROWTH STRATEGY DEVELOP TO SPEND ~A$30M OVER 24 MONTHS, FOCUSSING ON GROWING UNDERGROUND INVENTORY • Extensions of deposit is historically under- drilled - Kate lens was only discovered in 2013, c.40yrs post initial discovery • Develop to spend ~A$30m over 24 months on inventory growth and
Slide 17: Woodlawn Growth Strategy
WOODLAWN GROWTH STRATEGY TARGETING 7-10 YEAR INITIAL MINE LIFE FROM UNDERGROUND SOURCES • Proposed drill drive take-off dewatered, powered, ventilated and ready for development • Allows Develop to drill year round and effectively conduct DHEM (given interference of surface infrastructure without UG
Slide 18: Regional Exploration Potential
REGIONAL EXPLORATION POTENTIAL SIGNIFICANT REGIONAL LANDHOLDING IN PROSPECTIVE LACHLAN FOLD BELT • Extensive 1,372km2 position over prospective stratigraphy in the highly regarded Lachlan Fold Geological Belt • Proven prospectivity with several historic mining centres • Currawang (10km from Woodlawn
Slide 19: Develop Post Acquisition
DEVELOP POST ACQUISITION THREE ADVANCED STAGE HIGH GRADE BASE METAL PROJECTS IN A TIER 1 JURISDICTION Acquisition transforms Develop into a major base metals group centered on future-facing metals in Tier 1 locations Three advanced high-grade base metal projects in Tier 1 jurisdictions Sulphur S
Slide 20: Develop Post Acquisition
DEVELOP POST ACQUISITION THREE ADVANCED STAGE HIGH GRADE BASE METAL PROJECTS IN A TIER 1 JURISDICTION WOODLAWN SULPHUR SPRINGS WHIM CREEK Project Woodlawn Cu-Zn-Pb Project Sulphur Springs Cu-Zn-Ag Project Whim Creek Zn-Cu-Pb Ownership 100% Ownership 100% Ownership 20% Location NSW Location WA Locati
Slide 21: Sulphur Springs Project Update – 8 December 2021
A QUALITY PROJECT FOR THE ENERGY REVOLUTION SULPHUR SPRINGS Project update – 8 December 2021 • This update included the assays from ~25% of the resource/exploration holes drilled in the campaign • Outstanding infill drilling results point to a significant increase in the Indicated Resource. The East
Slide 22: Sulphur Springs Project Update – 10 February 2022
A QUALITY PROJECT FOR THE ENERGY REVOLUTION SULPHUR SPRINGS Project update – 10 February 2022 • This update included the assays from ~60% of the resource/exploration holes drilled in the campaign 22
Slide 23: Capital Raising Overview
PRODUCING POTENTIAL CAPITAL RAISING OVERVIEW
Slide 24: Equity Raising Overview
EQUITY RAISING OVERVIEW DEVELOP IS UNDERTAKING A A$50 MILLION EQUITY RAISING TO FUND THE ACQUISITION AND EXPLORATION AT WOODLAWN • Fully underwritten A$50 million equity raising (“Equity Raise”) comprising: • A$25m institutional placement (“Placement”) under Develop’s Listing Rule 7.1 placement capa
Slide 25: Indicative Equity Raising Timetable
INDICATIVE EQUITY RAISING TIMETABLE INDICATIVE TIMETABLE FOR THE TRANSACTION IS AS FOLLOWS Event Date Announcement of the Equity Raising and Placement and Institutional Entitlement Offer open Thursday, 17 February 2022 Announce completion of the Placement and Institutional Entitlement Offer Monday,
Slide 26: Appendix A – Key Investment Risks
APPENDIX A – KEY INVESTMENT RISKS 26
Slide 27: Key Investment Risks
KEY INVESTMENT RISKS There are a number of risks associated with an investment in New Shares or Develop generally, as with any securities market investment. This section summarises the following key risks: • Risks specific to the business and operations of Develop, the Offer and investment in shares
Slide 28: Key Investment Risks
KEY INVESTMENT RISKS Proposed Acquisition The Proposed Acquisition will be effected by way of a deed of company arrangement (DOCA), which must be approved by the requisite majorities of creditors of Heron in accordance with the Corporations Act 2001 (Cth). There is a risk that the DOCA will not be a
Slide 29: Key Investment Risks
KEY INVESTMENT RISKS Regulatory risks Develop’s exploration and development activities are subject to extensive laws and regulations relating to numerous matters including resource licence consents, conditions including environmental compliance and rehabilitation, taxation, employee relations, healt
Slide 30: Key Investment Risks
KEY INVESTMENT RISKS Potential merger and acquisition activity As part of its current business strategy, Develop may make acquisitions or divestments of, or significant investments in, companies, products, technologies or assets. Develop may also be the subject of a change of control transaction in
Slide 31: Key Investment Risks
KEY INVESTMENT RISKS Resource and reserve estimates Mineral resource and mineral reserve estimates must comply with the JORC Code, 2012 Edition, and are expressions of judgements based on knowledge, experience and industry practice. Estimates that are valid when made may change significantly when ne
Slide 32: Key Investment Risks
KEY INVESTMENT RISKS GENERAL RISKS Risks associated with an investment in equity capital There are general risks associated with any investment in equity capital. The trading price of Develop's shares (including the New Shares) may fluctuate with movements in equity capital markets in Australia and
Slide 33: Key Investment Risks
KEY INVESTMENT RISKS Other general risks The operating and financial performance of Develop is influenced by a variety of general economic and business conditions, including levels of consumer spending, inflation, interest rates and exchange rates, supply and demand, industrial disruption, access to
Slide 34: Appendix B – Foreign Selling Restrictions
APPENDIX B – FOREIGN SELLING RESTRICTIONS 34
Slide 35: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS This Presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this Presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia exce
Slide 36: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS New Zealand This Presentation has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC Act"). The New Shares are not being offered to the public within New Zealand other than to exi
Slide 37: Appendix C – Summary of Key Transaction Agreements
APPENDIX C – SUMMARY OF KEY TRANSACTION AGREEMENTS 37
Slide 38: Key Terms of the DOCA
KEY TERMS OF THE DOCA • Develop proposes to acquire 100% of the shares in Heron, which owns the Woodlawn Project, pursuant to a DOCA and an application to transfer all of the shares in Overview Heron under section 444GA of the Corporations Act. • The DOCA extinguishes all historical claims of Heron
Slide 39: Key Terms of the Co-operation Deeds
KEY TERMS OF THE CO-OPERATION DEEDS • Develop has entered into binding Co-operation Deeds with Nomad, Orion and Castelake (who hold in aggregate more than 50% of the value of the total claims Overview against Heron), pursuant to which those creditors have agreed to vote in favour of the DOCA propose
Slide 40: Key Terms of the Creditors' Trust
KEY TERMS OF THE CREDITORS’ TRUST • The DOCA requires that a creditors’ trust be formed to accelerate Heron’s exit from administration and result in control of Heron returning to its directors immediately upon effectuation of the DOCA. Overview • The creditors’ trust enables the claims of Heron’s cr
Slide 41: Appendix D – Underwriting Agreement Summary
APPENDIX D – UNDERWRITING AGREEMENT SUMMARY 41
Slide 42: Underwriting Agreement Summary
UNDERWRITING AGREEMENT SUMMARY Develop has entered into an underwriting agreement with the Lead Manager (Underwriting Agreement), pursuant to which the Lead Manager is acting as sole lead manager, underwriter and bookrunner of the Equity Raise, subject to the terms and conditions of the Underwriting
Slide 43: Underwriting Agreement Summary
UNDERWRITING AGREEMENT SUMMARY Qualified termination rights The Lead Manager may terminate its obligations under the Underwriting Agreement if any of the following events occurs, and the Lead Manager has reasonable grounds to believe that the event (1) has had, or is likely to have, a materially adv
Slide 44: Appendix E – Other Information
APPENDIX E – OTHER INFORMATION 44
Slide 45: Company Overview
COMPANY OVERVIEW ASX STOCK CODE SHARE PRICE MARKET CAPITALISATION CASH DVP $3.17 $447M $16.5M 140.9m shares on issue No Debt SUBSTANTIAL SHAREHOLDER SUBSTANTIAL SHAREHOLDER BILL BEAMENT 16% MINERAL RESOURCES 15.5% 45
Slide 46: Sulphur Springs Mineral Resources Table
SULPHUR SPRINGS MINERAL RESOURCES TABLE MINERAL RESOURCES Tonnes Location JORC Classification Cu % Zn % Pb % Ag g/t ('000t) Measured - - - - - Indicated 9,400 1.5 3.8 0.2 17.0 Sulphur Springs Inferred 4,400 1.4 3.7 0.2 18.0 Sub-total 13,800 1.5 3.8 0.2 17.0 Measured - - - - - Indicated 2,300 0.9 5.7
Slide 47: Woodlawn U/G Resources & Reserves
WOODLAWN U/G RESOURCES & RESERVES Underground - Mineral Resources and Reserves 2019 (7% ZnEq cut-off grade for Polymetallic and 1% Cu cut-off grade for Copper) Measured & Indicated Resource Lens Type Resource Quantity Zn Cu Pb Au Ag Category Mt % % % g/t g/t Polymetallic M+I 2.8 10.1 1.5 3.8 0.6 79
Slide 48: Woodlawn Tailings Resources & Reserves
WOODLAWN TAILINGS RESOURCES & RESERVES Tailings - Mineral Resources and Reserves 2019 (7% ZnEq cut-off grade for Polymetallic and 1% Cu cut-off grade for Copper) Measured & Indicated Resource Lens Type Resource Quantity Zn Cu Pb Au Ag Category Mt % % % g/t g/t South Dam M+I 3.2 2.5 0.5 1.2 0.3 27 No
Slide 49: Copper Equivalent Calculations
COPPER EQUIVALENT CALCULATIONS All Copper equivalent (CuEq) figures included in this Presentation are calculated based on the following formula: CuEq % = (Zn grade x Zn price x Zn recovery + Cu grade x Cu price x Zn recovery + Pb grade x Pb price x Pb recovery + Au grade x Au price x Au recovery + A
Slide 50: LOr
V/ LOr PRODUCING POTENTIAL DEVELOP.COM.AU