Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (February 2013)
20 slides from Northern Minerals's investor presentation, Feb 11, 2013
Slide 1: Investor Presentation - $58M Funding Package
For personal use only Investor Presentation - $58M Funding Package February 2013 George Bauk Managing Director/CEO
Slide 2: Important Notice
Important Notice For personal use only This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or inv
Slide 3: The NTU Sustainable Competitive Advantage
The NTU Sustainable Competitive Advantage For personal use only Point of difference “Heavies” Browns Range Project Based on Wolverine JORC compliant resource estimate Mt Weld Project Mt Weld REO composition data above sourced from Lynas Corporation website Xenotime 3
Slide 4: Capital Structure – Pre-Funding
Capital Structure – Pre-Funding For personal use only ASX Code NTU Ordinary Shares 246.6M* Unlisted Options and Performance Rights Various prices and expiry dates 18.5M# Trading Summary Market Capitalisation (in AUD) $43.2M (as at 8 February 2013 @ $0.175) 52 week trading range (in AUD) $0.16-$0.57
Slide 5: Board & Management
Board & Management For personal use only George Bauk Kevin Schultz Adrian Griffin Colin McCavana Managing Director / CEO Non Executive Chairman Non Executive Director Non Executive Director - 20+ years mining operation - Formerly Managing Director – - Specialising in mine - Former Managing Director
Slide 6: $58 million funding Transaction Summary
$58 million funding Transaction Summary For personal use only The funding package comprises four components: 1. Sale of a 16% stake in the Browns Range project to Australia Conglin International Investment Group Pty Ltd to raise $26 million, with an off-take agreement for an additional 20% of Browns
Slide 7: Post Funding Capital Structure Scenarios
Post Funding For personal use only Capital Structure Scenarios Browns Range ** John Galt after Rights Issue 16% - Australia Conglin International Investment C Yue and Group Pty Limited 100% Associates * Descriptions Shareholding subject to shareholder NTU 100% shareholders take up Rights Issue 19.9%
Slide 8: Business Plan 2013-2014 Budget
2 Year Business Plan For personal use only 2013 2014 2015 1. Geology/Exploration – Browns Range $11.0M $3.0M 2. Engineering, Infrastructure and Mining $6.9M $5.3M Studies CONSTRUCTION 3. Mineral Processing and Metallurgy • Beneficiation Test work $5.2M $0.3M • Hydromet Test work $3.4M $0.8M 4. Envir
Slide 9: Timetable of Funding Activities
Timetable of Funding Activities For personal use only Funding under this agreement will be received on the following basis:- • 20 Feb 2013 $3.76m placement • April 2013 $26.5m from rights issue • 30 Sept 2013 $1m from instalment from sale of gold project * • 30 Oct 2013 $5m from instalment payment f
Slide 10: Project Development for 2013
Project Development for 2013 For personal use only • Complete the Scoping Study based on the Wolverine resource April 2013 • Advance the PFS in line with resource drilling and metallurgical test work • Complete beneficiation optimisation testwork, finalise flowsheet and undertake bulk sample process
Slide 11: Simplified Process Flowsheet
Simplified Process Flowsheet For personal use only Rare Earth Browns Upstream Range and Mid–Stream HRE Project Supply Simplified Chain Process and Process Flowsheet MINING BENEFICIATION HYDROMETALLURGY Mixed Rare Earth Oxide Target >92% TREO Mineral Concentrate Crushing Sulphation Bake 30% TREO Grin
Slide 12: Pathway to Production
Pathway to Production For personal use only Schedule is based on being fully funded in 2013/14 12
Slide 13: Browns Range Dome
Browns Range Dome For personal use only • Northern Minerals 100% ownership and marketing rights (excluding Toro JV) • Entered into JV with Toro Energy on 7 tenements in NT to earn up to 80% by completed FS • Total Land Holding – 2,500km2 • Significant new HRE discoveries in 2009 - 2012 • Focus to da
Slide 14: Wolverine Resource
Wolverine Resource For personal use only Category Mt TREO Dy2O3 Y2O3 HREO TREO % ppm ppm % Tonnes Indicated 0.90 0.82 728 4,739 89 7,400 Inferred 0.54 0.57 495 3,185 81 3,100 Total1 1.44 0.73 640 4,153 84 10,500 1 Rounding may cause some computational discrepancies Average U3O8 of 26ppm and average
Slide 15: Browns Range - Gambit West
Browns Range - Gambit West For personal use only • New discovery located approximately 200m west of central Gambit prospect • Results include 32m @ 1.73%, 20m @ 2.36% and 13m @ 1.72% TREO • High-grade HRE mineralisation with true widths of up to 20m and open along strike and at depth • Resource esti
Slide 16: Pipeline of Prospects
Pipeline of Prospects For personal use only Production Reserves Wolverine CurrentResource Current Resource 10,500t TREO 10,500t TREO Resources Targeting total resource of Wolverine 22,000 - 29,000t TREO * Gambit Area 5 Significant Drilling Gambit West Cyclops Intersections Banshee Mystique Area 5 No
Slide 17: John Galt HRE Project
John Galt HRE Project For personal use only • Rock chip samples up to 42% TREO with approximately 95% Heavy REO • Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% • High grade mineralisation in talus (scree) material – hard-rock sour
Slide 18: Stakeholder Engagement
Stakeholder Engagement Environmental Studies and EIS For personal use only • The stakeholder and community engagement plan has been developed. Meetings held with: • Stakeholder Engagement • Various ministers at Federal & State Level • DMP and EPA • Traditional Owners • Local community Kundat Djaru (
Slide 19: Rare Earths Market and Off-take
Rare Earths Market and Off-take For personal use only • REO pricing eased in 2nd half 2012, prices remaining relatively stronger for HREs • China maintains differentiation of LRE and HRE in export quotas • Imminent success of Mountain Pass & Mt Weld will not address HRE supply • Superior HRE pricing
Slide 20: In Summary
In Summary For personal use only Fully Funded to Feasibility Study • $58m raised through o 16% sale of Browns Range* o Sale of gold tenements* o Placement o Rights issue fully underwritten • 2013-2014 plan focused on o Increasing JORC compliant resource at Browns Range o Completion of feasibility st
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