Cygnus Metals Limited · ASX:CY5
Cygnus Metals — Merger or Acquisition (October 2024)
32 slides from Cygnus Metals's merger presentation, Oct 15, 2024
Slide 1: Clarification Announcement
ASX Code: CY5 15 October 2024 Clarification Announcement Cygnus Metals Limited (ASX:CY5) (“Company”) released an announcement to ASX earlier on 15 October 2024 titled “Merger and Equity Raise Presentation” (“Announcement”). The Company wishes to clarify that there was a typographical error on slide
Slide 2: Merger of Equals: Cygnus Metals & Doré Copper Mining Corp
Merger of Equals: Cygnus Metals & Doré Copper Mining Corp Combining a high-grade copper gold project with proven resource, project development & exploration expertise ASX: CY5
Slide 3: Cautionary Statements
Cautionary Statements This presentation contains summary information about Cygnus Metals Limited (“Cygnus”, “Cygnus Metals” or the “Company”) and Doré Copper Mining Corp. ("Doré") . The information in this presentation is of general background and does not purport to be complete. FORWARD-LOOKING STA
Slide 4: Key Takeaways
Key Takeaways ❖ Merger of Equals between Cygnus and Dore Copper Mining Corp ❖ High-grade – Copper and gold resource of 10.8Mt @ 3.5% CuEq ❖ PEA* – Comprehensive report completed in 2022 ❖ Infrastructure – 900ktpa mill, hydro power, roads, township, workforce ❖ Leverage – Substantial commodity spot p
Slide 5: The Assets
The Assets The merger will create a significant Quebec-focused Critical Minerals company • High-grade Cu/Au resource 10.8Mt @ 3.5% CuEq1 – one of the highest- grade CuEq resource on the ASX • Comprehensive PEA completed 2022* • 900ktpa processing facility – the only mill within 250km • Opportunity t
Slide 6: Geology Upside: Brownfields & Near Mine
Geology Upside Brownfields & Near Mine ❖ District Historic Production – 945,000t Cu and 3.5Moz Au1 ❖ High-Grade System - 3.5% CuEq with copper and gold2 ❖ Silver and Other Credits – Up to 1oz/t Ag (not in the resource)2 ❖ OPEN – Multiple lodes untested at depth and along strike ❖ Underexplored – Hig
Slide 7: Merger Highlights
Merger Highlights Right Commodity, Right Team, Right Time • All-scrip Merger of Equals between • Quebec-focused critical metals Cygnus Metals and Doré Copper Mining company Corp. • Improved access to capital – support • Capitalised for growth with strong of CY5, Andean Silver and FireFly support Met
Slide 8: Proposed Merged Board
Proposed Merged Board Proven track record of success in both exploration, development and production companies Team supported by Andean Silver, FireFly Metals and Cygnus Metals Founders Steve Parsons and Michael Naylor David Southam Ernest Mast Kevin Tomlinson Mario Stifano Raymond Shorrocks Brent O
Slide 9: The Chibougamau Project
The Chibougamau Project High Grade Copper Gold ❖ Consolidated 187km2 landholding ❖ 900ktpa processing plant ❖ Major infrastructure including mining town, training centre, roads, rail, airport, and hydro Deposit Tonnes Cu % Au g/t Corner Bay 8.5 3.2 0.3 Devlin 1.3 2 0.2 Cedar Bay 0.4 1.9 8.7 Joe Mann
Slide 10: Historic High-Grade Copper Gold
Historic High-Grade Copper Gold One of the most prolific terranes in Quebec ❖ Mined between the early 1900’s and 2008 – final mine closed during the GFC (Copper Rand) District Historic Production 53.5Mt @ 3.4% CuEq (1.8% Cu & 2.1g/t Au) for 945,000 of Copper and 3.5Moz of Gold ❖ 16 historic mines co
Slide 11: Quebec's Next Copper Producer
Quebec’s Next Copper Producer High Grade Copper Gold • Established infrastructure and a 900ktpa processing plant • GREEN copper opportunity with power from renewable energy through Quebec’s hydro power • Doré completed a PEA* in 2022 40,000 35,000 30,000 Production (Tonnes) CY23 Actual Copper 25,000
Slide 12: Chibougamau Exploration Potential: Brownfield Targets
Chibougamau Exploration Potential A platform for growth Contained Metal Targets Historic Mineral 12 Month Catalysts Production Resource 272kt Cu & ➢ Infill Drilling Corner Bay NA With Existing 73Koz Au ➢ Extension Drilling Resource 25kt Cu & 8Koz Devlin NA ➢ Infill Drilling Au 61kt Cu & 1kt Cu & ➢ E
Slide 13: Chibougamau Exploration Potential
Chibougamau Exploration Potential A Platform for Growth • Quality ore bodies: Copper Rand produced • Demonstrated continuity at depth • Lack of exploration drilling for parallel lodes over 268kt Cu and 1.3Moz Au • All mines open at depth with existing • Significant near surface intersections unmined
Slide 14: Exceptional Infrastructure
Exceptional Infrastructure For fast tracked development • Conventional 900ktpa processing facility produced high-quality, clean concentrate • Processing facility located 10km from the town of Chibougamau most recently operated in 2008 • Only processing facility in region within 250km radius • Estima
Slide 15: Exceptional Infrastructure
Exceptional Infrastructure Well serviced mining hub • Regional airport - three flights per week to/from Montreal • Within 10km of a mining town with a local workforce and population >7,500 (2021 census) • Regional railway infrastructure linking to major ports across Quebec • Hydro power traversing t
Slide 16: Regional Overview: Opportunity for Consolidation
Regional Overview Exceptional Infrastructure Opportunity for Consolidation For fast tracked development and oexploration er o ster e pe s C bou u t C bou u Pro ect ❖ The Chibougamau Project has the only processing infrastructure in the region ❖ Next closest due for construction is Goldfields Windfal
Slide 17: Opportunity and Strategy
Opportunity and Strategy Multi-pronged growth pathway Key Catalysts Resource Drilling Extension Drilling Brownfield Exploration and Modern Geophysics 2024 2025 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Project Acquisition ✓ Historic Data Compilation Corner Bay Resource Growth Drilling Cedar Ba
Slide 18: An Opportunity to Create Shareholder Value
An Opportunity to Create Shareholder Value Creating a Diversified Critical Metals Explorer and Developer World Class Endowment High Grade Resources Competitive Advantage Growth and Brownfield Upside • Chibougamau Copper Gold assets • High-grade copper gold resource • 900ktpa processing plant • All c
Slide 19: Transaction & Equity Summary
Transaction & Equity Summary ASX: CY5 18
Slide 20: Merger and Equity Raising Summary
Merger and Equity Raising Summary • Cygnus to acquire 100% of the issued and outstanding shares of Doré (“Doré Shares”) via a statutory plan of arrangement under the Canada Business Corporations Act (the “Transaction”) in accordance with the terms of an arrangement agreement dated 15 October 2024 be
Slide 21: Equity Raising Overview
EQUITY RAISING SUMMARY Equity Raising Overview Two tranche institutional placement to raise up to A$11m • Two-tranche institutional placement to raise A$11 million (before costs) ("Placement" or "Offer") • The Placement will comprise the issue of approximately 152.8 million new fully paid ordinary s
Slide 22: Indicative Timetable
EQUITY RAISING SUMMARY Indicative Timetable Merger implemented by late-December 2024 EVENT DATE Settlement of Tranche 1 of the Placement Tuesday, 22 October 2024 Interim Court hearing / record date Mid-November 2024 Doré and Cygnus shareholder meetings Mid-December 2024 Settlement of Tranche 2 of th
Slide 23: Indicative Pro Forma Capital Structure
EQUITY RAISING SUMMARY Indicative Pro Forma Capital Structure Indicative pro forma market capitalisation of ~A$61m PRO FORMA Current Shares on Issue (M) 379.8 Shares Issued under Tranche 1 Placement (M) 94.9 Shares Issued under Tranche 2 Placement (M) 57.9 Shares Issued under Transaction1 (M) 311.0
Slide 24: Key Risks
KEY RISKS Key Risks The following risks have been identified as being key risks specific to an investment in Cygnus on the assumption the transaction with Doré is completed (such that Cygnus and Doré are referred to as the “Merged Group”), and the mining industry more generally. These risks have the
Slide 25: Key Risks
KEY RISKS Key Risks Flow through placement risk well as government control over natural resources or government regulations that require the employment of local staff or contractors or require other benefits to be provided to local residents. Any future material adverse changes in government In Augu
Slide 26: Key Risks
KEY RISKS Key Risks Access to sufficient used and new equipment the growth prospects, operating results and financial performance of Cygnus. The activities of Cygnus are dependent on access to used and new mining equipment, including obtaining timely access to drill Climate change rigs capable of me
Slide 27: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICTIONS International Offer Jurisdictions 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 distributed to any person, and the New Shares
Slide 28: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICTIONS International Offer Jurisdictions European Union Statutory rights of action for damages and rescission This document has not been, and will not be, registered with or approved by any securities regulator in the European Securities legislation in certain of the Provi
Slide 29: Appendices
Appendices Appendix 1: Resources Appendix 2: 2023 Copper Production Data ASX: CY5 28
Slide 30: Doré NI 43-101 Resources – Chibougamau Project; Cygnus JORC Resources – Pontax
APPENDIX 1 Doré NI 43-101 Resources – Chibougamau Project Indicated Inferred Total Tonnes Cu Grade Au Grade Cu Metal Au Metal Tonnes Cu Grade Au Grade Cu Metal Au Metal Tonnes Cu Grade Au Grade Cu Metal Au Metal CuEq Grade Deposit (k) (%) (g/t) (kt) (koz) (k) (%) (g/t) (kt) (koz) (k) (%) (g/t) (kt)
Slide 31: 2023 Copper Production Data
APPENDIX 2 2023 Copper Production Data 2023 Cu Metal PROPERTY CURRENT OWNER PRODUCTION SOURCE DATA (Tonnes) Cobar Metals Acquisition Corp. 36,150 1. 2023 Annual Report. https://s202.q4cdn.com/908723817/files/doc_financials/2023/ar/24-03-28_mac-asx_metals-acquisition-ltd-annual-report_ver-0_for-issue
Slide 32: Contact
ASX: CY5 Contact: info@cygnusmetals.com Phone: +61 8 6188 1627 www.cygnusmetals.com 31