Dpm Metals Inc. · TSX:DPM
Dpm Metals — Dundee Precious Metals — Merger or Acquisition (May 2021)
18 slides from Dpm Metals's merger presentation, May 31, 2021
Slide 1: Acquisition of INV Metals
Acquisition of INV Metals Adding a high-quality development project May 31, 2021 TSX: DPM
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. More particularly and without limitation, this presentation release contains forward-looking sta
Slide 3: Transaction Highlights
Transaction Highlights DPM to acquire remaining 76.5% of INV Metals, 100% owner of the Loma Larga gold project in Ecuador ▪ All-share transaction to consolidate DPM’s ownership in INV Metals DPM’s Global Portfolio of Assets ▪ Loma Larga is a high-quality, advanced stage gold project with compelling
Slide 4: Transaction Summary
Transaction Summary Proposed ▪ DPM to acquire all of the outstanding shares of INV Metals that it does not currently own, pursuant to a Plan of Arrangement Transaction ▪ Implied equity value on a 100% and fully-diluted basis of C$132 million, and C$104 million for the portion not owned by DPM ▪ Exch
Slide 5: Strategic Rationale for Dundee Precious Metals
Strategic Rationale for Dundee Precious Metals ✓ Strong track record of engaging with local communities and developing industry-leading ESG solutions Well-aligned with DPM’s core strengths and unique capabilities to unlock value ✓ • Leveraging experience at Chelopech, Ada Tepe and Tsumeb to deliver
Slide 6: Well-Aligned with DPM Core Strengths & Unique Capabilities to Unlock Value
Well-Aligned with DPM Core Strengths & Unique Capabilities to Unlock Value Leverages DPM’s proven strengths in developing world-class assets and applying industry-leading ESG solutions Chelopech Ada Tepe Tsumeb ▪ Similar geology, mining method and ▪ Loma Larga will benefit from ▪ Project to produce
Slide 7: Strong Track Record Engaging with Local Communities & Developing Innovative Solutions
Strong Track Record Engaging with Local Communities & Developing Innovative Solutions Leveraging DPM’s strong ESG performance Sustainability Highlights ▪ DPM brings a depth of experience and a strong track record from our Highest average salary in Bulgaria existing operations Chelopech Municipality
Slide 8: Loma Larga Project Overview
Loma Larga Project Overview Advanced stage, underground gold deposit located in Southern Ecuador ▪ High-quality, low-cost production with strong economic returns Location Map ▪ Designated as a “Strategic Project” by the Ecuadorian Government Ecuador ▪ EIS submitted in April 2021 Quito ▪ Expected low
Slide 9: High-Quality Growth Asset
High-Quality Growth Asset Feasibility study results highlight Loma Larga’s potential to add meaningful growth and generate significant value Feasibility Study Summary Metrics (April 2020) DFS Operating Profile Significant Scale Initial mine life 12 years Average annual production of +170k oz. Au LOM
Slide 10: Adds an Attractive Project to DPM's Development Pipeline
Adds an Attractive Project to DPM’s Development Pipeline Loma Larga offers significant scale with peer-leading operating costs Average Annual Production (k oz. Au) 223 205 172 156 146 118 (1) Back River Volta Grande Loma Larga Railroad Valentine Bombore (Sabina) (Belo Sun) (GSV) (Marathon) (Orezone)
Slide 11: Complementary to DPM's Existing Operations & Capabilities
Complementary to DPM’s Existing Operations & Capabilities Adds significantly to production and further strengthens industry-leading cost position 2021 Production Guidance (k oz. Au) 490 450 445 400 345 337 294 230 172 99 (1) Alamos Torex Eldorado Lundin Gold Pretium New Gold DPM Argonaut Wesdome Lom
Slide 12: Maintains DPM's Financial Strength & Flexibility
Maintains DPM’s Financial Strength & Flexibility Preserves DPM’s strong balance sheet & ability to pursue additional growth opportunities ▪ All-share transaction increases ownership from Pro Forma Capitalization existing 23.5% to 100% Combined ▪ Shares issued represent ~5.5% of DPM shares Exchanges
Slide 13: Disciplined Approach to Project Development
Disciplined Approach to Project Development Next steps to building additional value for all stakeholders ▪ Prioritize engagement with local communities to develop an acceptable project plan and secure social license ▪ Review permitting schedule in conjunction with the key stakeholders to refine deve
Slide 14: Advancing Loma Larga Consistent with our Strategy & Track Record
Advancing Loma Larga Consistent with our Strategy & Track Record Commitment to the highest standards for engagement with local communities and environmental stewardship ▪ Our corporate purpose, “Unlocking resources and generating value to thrive & growth together” emphasizes our ability to deliver p
Slide 15: Appendix
Appendix TSX:DPM 15
Slide 16: Loma Larga Mineral Reserve & Resource Estimate
Loma Larga Mineral Reserve & Resource Estimate (as at March 31, 2020) Mineral Reserves Million Au Ag Cu Au Ag Cu Tonnes (Moz) (Moz) (Mlbs) (g/t) (g/t) (%) Proven 2.9 0.7 3.3 28.5 7.30 34.8 0.44% Probable 11.0 1.5 10.0 59.5 4.28 28.3 0.25% Proven & Probable Sub Total 13.9 2.2 13.3 88.0 4.91 29.6 0.29
Slide 17: Qualified Person Disclosure
Qualified Person Disclosure DPM Qualified Person All scientific and technical information in this presentation with respect to DPM and its assets were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of
Slide 18: Corporate Head Office Investor Relations
Corporate Head Office 1 Adelaide Street East, Suite 500 Toronto, Ontario M5C 2V9 T: 416 365-5191 Investor Relations T: 416 219-6177 www.dundeeprecious.com Follow us on Twitter @DundeePrecious Visit our LinkedIn page linkedin.com/company/dundee-precious-metals-inc/
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