Pantoro Gold Limited · ASX:PNR
Pantoro Gold — Merger or Acquisition (May 2019)
38 slides from Pantoro Gold's merger presentation, May 15, 2019
Slide 1: Strategic Transaction and Equity Capital Raising – 14 May 2019
Click to edit Master title style Strategic Transaction and Equity Capital Raising – 14 May 2019 Not for release to US wire services or distribution in the United States
Slide 2: Important Notices
Important Click to edit Notices Master title style Nature of Document. This presentation has been prepared and issued by Pantoro Limited (Company) to provide general information about the Company and information about a proposed transaction. The information in this document is in summary form and sh
Slide 3: Important Notices (Cont.)
ClickImportant to edit Master Notices title(Cont.) style Future performance. This presentation contains forward-looking information about the Company and its operations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", “should”, "could", "es
Slide 4: Pantoro to acquire 50% ownership and management control of the Norseman goldfield
Stepping Click Up to Master to edit the Next titleLevel style Pantoro to acquire 50% ownership and management control of the Norseman goldfield (“Central Norseman Gold Project” or “CNGP”) and form an unincorporated joint venture with Central Norseman Gold Corporation Pty Ltd and its subsidiary (“Ven
Slide 5: Table of Contents
Table Click to edit of Contents Master title style I Transaction Overview II Central Norseman Gold Project III Project Execution IV Company Transformation V Offer Details VI Appendix 5
Slide 6: I. Transaction Overview
Click to edit Master title style I. Transaction Overview
Slide 7: Overview of the Transaction
Overview of the Click to edit Transaction Master title style Pantoro Limited through its 100% owned subsidiary Pantoro South Pty Ltd (“Pantoro”) to enter into an acquisition and unincorporated joint venture agreement (“UJV”) with the Vendor Transaction Pantoro to take immediate ownership of 50%
Slide 8: Transaction Rationale
Transaction Click to edit MasterRationale title style Pantoro will tick all the boxes: – multiple operations both with tier 1 addresses Market Appeal – both project areas are operating regions rather than individual mines – both project areas have unbridled exploration upside potential – large Min
Slide 9: II. Central Norseman Gold Project
Click to edit Master title style II. Central Norseman Gold Project
Slide 10: History of Norseman
Click History of Norseman to edit Master title style For over 75 years, Norseman operated continuously and produced in excess of 5.5Moz of gold as one of the highest grade, large scale projects in Western Australia 1894 1935 2002 2006 2007 2012 2019 Davos Resources February 2012 Tulla continues to G
Slide 11: CNGP Overview
Click toOverview edit Masteroftitle CNGP style Location Located in the Eastern Goldfields of Western Australia in the Norseman-Wiluna CNGP Mining Tenement Assets Greenstone Belt, 725km east of Perth and 186km south of Kalgoorlie One of Western Australia’s great goldfields discovered in the early
Slide 12: Norseman is a High Grade Project
NorsemanClick is atoHigh Gradetitle edit Master Project style Proven Very High Grade Western Australian Mega–Gold Field Grade is king: – Highest grade production history in the Yilgarn Craton with >5Moz produced – Current underground Mineral Resource of 4.2Mt @ 15.3g/t for 2Moz – Immediate access
Slide 13: CNGP JORC Resource
CNGP Click JORC to edit Resource Master title style Underground Surface Tonnes Grade Contained Au Tonnes Grade Contained Au Category Category (M) (g/t) (Moz) (M) (g/t) (Moz) Measured 0.3 13.90 0.13 Measured 4.31 0.80 0.11 Indicated 1.34 17.86 0.77 Indicated 11.37 2.02 0.74 Inferred 2.53 14.06 1.15 I
Slide 14: CNGP’s Existing Infrastructure
CNGP’s Existing Click Infrastructure to edit Master title style Extensive mine infrastructure: Phoenix Processing Plant – The majority of infrastructure required to commence production is in place and owned or available for use by the joint venture – Several workshop and office complexes in place
Slide 15: III. Project Execution
Click to edit Master title style III. Project Execution
Slide 16: How Will Pantoro Unlock Value at CNGP?
How Will Pantoro ClickUnlock to edit Value Masterattitle CNGP? style • Pantoro has demonstrated its ability to redevelop, restart and Ensure that CNGP is well funded through simple successfully operate high-grade, $ financing structures vein hosted underground gold mines • The low-capital developmen
Slide 17: Project Development Strategy
Project Development Click to edit Master Strategy title style Immediate project work focuses on establishing a strong base to commence production: First-focus Mining Centres – Clear strategy to develop a number of mining centres to commence production – Mining Centres all include multiple Mineral
Slide 18: Untapped Exploration Potential
Untapped Click Exploration to edit MasterPotential title style Large targets: – Independent expert exploration review confirms potential for discovery of multiple targets Unique setting: – CNGP provides a unique structural setting with key productive faults passing through and interacting with e
Slide 19: IV. Company Transformation
Click to edit Master title style IV. Company Transformation
Slide 20: Pantoro Post Transaction
Pantoro Post Click to edit Transaction Master title style Pantoro (pre Transaction) Adjustment2 Pantoro (post Transaction) Share price A$/share 0.20 0.20 Placement Shares and shares issued to the m 860.8 315.21 1,175.9 Vendor Options and performance rights m 16.0 16.0 Market capitalisation A$m 172.2
Slide 21: Australian Based Gold Producers and Developers
Australian Based Gold Producers Click to editand Developers Master title style Pantoro will have two of the highest grade underground and surface Mineral Resources which is expected to support industry high margins Underground Mineral Resource (g/t) Surface Mineral Resource (g/t) 16.0 15.3 14.4 7.0
Slide 22: Positioned for Growth and Re-Rating
Positioned for Growth Click to edit and Re-Rating Master title style EV1 / Resource (A$/oz) Production (oz) 500 800 450 400 700 360 350 600 300 500 250 Average: $191/oz 400 200 300 150 100 69 200 50 100 - - Cheap, high quality ounces Project scale to facilitate growth – Acquisition shifts Pantor
Slide 23: AISC Margin
AISCtitle Click to edit Master Margin style AISC Margin (A$/oz) Operating with strong margins 1,200 – Pantoro’s margins are already above industry average 1,000 – Ongoing production upgrades at Halls Creek are projected to reduce unit costs further 800 Average: A$610/oz – CNGP operations to focus
Slide 24: V. Offer Details
Click to edit Master title style V. Offer Details
Slide 25: Offer Details
Offertitle Click to edit Master Details style A fully underwritten Placement to raise gross proceeds of approximately A$43.0 million Offer Structure & Size – Approximately 215 million fully paid ordinary shares to be issued under ASX LR 7.1 (approximately 129 million shares) and LR 7.1A (approxima
Slide 26: Sources and Uses of Funds
Sources Click toand edit Uses Masterof Funds title style Sources of Funds A$ million Uses of Funds2,3 A$ million Upfront cash consideration to the Vendor and Existing cash reserves and gold1 23.2 11.0 transaction related costs Placement 43.0 Exploration and infill drilling of immediate production 7.
Slide 27: Offer Timetable
Click to editOffer MasterTimetable title style Placement Timetable Date1 Trading halt and announcement of the Transaction and Placement (after-market) Tuesday, 14 May 2019 Trading halt lifted and Pantoro shares recommence trading on ASX Friday, 17 May 2019 Settlement of Placement Shares Tuesday, 21
Slide 28: VI. Appendix
Click to edit Master title style VI. Appendix
Slide 29: International Offer Jurisdictions
International Offer Click to edit Jurisdictions Master title style This document does not constitute an offer of Placement 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 Placement Shares may not be o
Slide 30: International Offer Jurisdictions (Cont.)
International Offer Jurisdictions Click to (Cont.) edit Master title style Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce these rights more than: (a) in the case of any action for rescission, 180 days after the date of the transaction that gave rise
Slide 31: International Offer Jurisdictions (Cont.)
International Offer Jurisdictions Click to (Cont.) edit Master title style Singapore This document and any other materials relating to the Placement Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this do
Slide 32: Key Risks
Key Click to edit Master titleRisks style Mining project acquisitions, developments, and operations hold a number of inherent general and project specific risks. During the due diligence process Pantoro and Bell Potter have assessed the key risks which include those set out below Risk Mitigation Min
Slide 33: Competent Persons Statements
CompetentClick Persons Statements to edit Master title style Central Norseman Gold Project Mineral Resources & Ore Reserves The information in this report that relates to Exploration Targets, Exploration Results and Mineral Resources is based on information compiled by Mr Andrew Hawker (B.Sc. (Hons)
Slide 34: Norseman Mineral Resource Tables
Norseman Mineral Click toResource edit MasterTables title style Underground Resources January 2019 MEASURED INDICATED INFERRED TOTAL Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Mainfield Area Ajax 15,000 13.00 6,270 30,000 13.00 12,540 39,000 13.00 16,302 84,000 1
Slide 35: Norseman Mineral Resource Tables
Norseman Mineral Click toResource edit MasterTables title style Surface Resources January 2019 - South of Jimberlana Dyke MEASURED INDICATED INFERRED TOTAL TONNES GRADE OUNCES TONNES GRADE OUNCES TONNES GRADE OUNCES TONNES GRADE OUNCES Mainfield Area Ground Lark 70,000 2.80 6,300 70,000 2.80 6,300 M
Slide 36: Norseman Mineral Resource Tables
Norseman Mineral Click toResource edit MasterTables title style Surface Resources January 2019 - North of Jimberlana Dyke MEASURED INDICATED INFERRED TOTAL TONNES GRADE OUNCES TONNES GRADE OUNCES TONNES GRADE OUNCES TONNES GRADE OUNCES North Royal Slippers N Royal Paleochannels 427,746 1.17 16,133 7
Slide 37: Halls Creek Project Mineral Resource & Ore Reserve Tables
Halls Creek Project Mineral Resource & Click to edit Master title style Ore Reserve Tables MEASURED INDICATED INFERRED TOTAL TONNES GRADE OUNCES TONNES GRADE OUNCES TONNES GRADE OUNCES TONNES GRADE OUNCES Nicolsons (May 2018) 222,000 15.6 111,000 432,000 7.5 104,000 163,000 9.0 47,000 817,000 10.0 2
Slide 38: Company Sourced Information
Sourced ClickCompany Information to edit Master title style Company Ticker Date Source Newcrest Mining Limited NCM 14/02/2019 Annual Mineral Resources and Ore Reserves Statement Evolution Mining Limited EVN 19/04/2018 Annual Mineral Resources and Ore Reserves Statement Northern Star Resources Limite