Oceanagold Corporation · TSX:OGC
Oceanagold — Merger or Acquisition (October 2013)
19 slides from Oceanagold's merger presentation, October 2013
Slide 1: Pacific Rim Mining Acquisition
Pacific Rim Mining Acquisition October 2013 Innovation Performance Growth
Slide 2: Cautionary Notes – Forward-looking
Cautionary Notes – Forward-looking Cautionary Notes - Information Purposes Only The information contained in this presentation is provided by OceanaGold Corporation (“OGC”) for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer
Slide 3: Cautionary Notes – Technical Information
Cautionary Notes – Technical Information Cautionary Notes regarding Technical Information Standards: This presentation includes disclosure of scientific and technical information, as well as information in relation to the calculation of reserves and resources, with respect to OGC’s and Pacific Rim’s
Slide 4: Transaction Overview
Transaction Overview • 0.04006 OceanaGold share for each Pacific Rim share Offer Terms • Plan of arrangement • Pro forma ownership: ~ 98% OceanaGold / 2% Pacific Rim • Implied offer value of C$0.060497 per PacRim share (based on October 7, 2013 closing price) Offer Value • 50% premium to Pacific Rim
Slide 5: Acquisition Metrics
Acquisition Metrics Key Transaction Metrics Offer Value C$ 10.2 M1 (C$ 0.060497 per share) Estimated Mineral Reserves (2005)2 0.49 Moz Au @ 9.51 g/t Au plus 3.14 Moz Ag @ 60.82 g/t Ag Estimated Measured and Indicated Mineral 1.30 Moz Au @ 9.42 g/t Au plus Resources (2008)2 9.48 Moz Ag @ 68.96 g/t Ag
Slide 6: Key Transaction Benefits
Key Transaction Benefits To OceanaGold shareholders To Pacific Rim shareholders Provides opportunity to participate in a leading gold producer with continued Adds the high grade El Dorado gold-silver exposure to the development of the El resource with significant upside potential1 Dorado project wit
Slide 7: Pacific Rim Mining
Pacific Rim Mining • Mineral exploration company with focus in the Americas • Formed in 2002 through amalgamation with Dayton Mining Corporation • Listed on TSX (PMU) and OTCQX (PFRMF) • Market Cap ~US$7.2m (October 7, 2013) • 211m shares outstanding, 15.3m options • El Salvador Projects • Primary -
Slide 8: El Dorado Project
El Dorado Project • Primary project of Pacific Rim • Located in El Salvador, ~ 71km north east of capital San Salvador • Advanced stage exploration • Low sulphidation epithermal vein hosted gold deposit • 6 deposits defined • M&I Resources (2008): • 1.3 Moz Au + 9.5 Moz Ag • Inferred Resources (2008
Slide 9: Project Location
Project Location 9 OceanaGold Corporation Innovation Performance Growth
Slide 10: El Dorado Project Area
El Dorado Project Area • 14,400 hectare area • Access by paved road from San Salvador (~1.5 hours) • Surrounded by large rural area • Extensive mapping of mineralised structures • Geological mapping covers ~ 2,000 hectares • Deposits & prospects in veins, hot springs and hydrothermal breccias 10 Oce
Slide 11: Pacific Rim Arbitration Background
Pacific Rim Arbitration Background • Initiated in April 2009 • Arbitration claim • Being heard at International Center for the Settlement of Investment Disputes (ICSID) in Washington, DC • Based on Government of El Salvador (GOES) breach of international and domestic law • GOES failure to issue expl
Slide 12: Pacific Rim Arbitration Final Phase Status
Pacific Rim Arbitration Final Phase Status • Pacific Rim statement of Claim, March 2013 • Supported by statements of multiple experts • Includes valuation of $301 M1 for losses caused by GOES breaches of El Salvador Investment Law • Final phase of Arbitration • Determine whether breach of law by GOE
Slide 13: Mineral Reserve Grade AuEq
Mineral Reserve Grade AuEq 10.45 1.57 1.81 1.12 Macraes Reefton Didipio El Dorado Note: AuEq is calculated based on gold price US$1,300/oz, silver price US$20/oz and copper US$3.00/lb. Refer to full Mineral Reserve table on slides 15 and 16 for applicable tonnage. 13 OceanaGold Corporation Innovatio
Slide 14: Pro Forma Mineral Resources and Reserves
Pro Forma Mineral Resources and Reserves Measured & Indicated Resources 12 10 8 AuEq Moz 6 4 Proven & Probable Reserves 2 6 0 Macraes Reefton Didipio El Dorado Pro Forma 5 OGC 4 AuEq Moz Indicated AuEq Measured AuEq 3 2 1 0 Macraes Reefton Didipio El Dorado Pro Forma OGC Probable AuEq Proven AuEq No
Slide 15: OceanaGold Mineral Resources and Reserves
OceanaGold Mineral Resources and Reserves As at 31 December 2012 RESOURCE MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Au Au Au AREA Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Mt Au g/t Cu % Cu Mt Moz Moz Moz Moz MACRAES TOTAL 28.7 1.38 1.27 . . 73.1 1.12 2.64 . 1
Slide 16: Pacific Rim Mineral Resources and Reserves
Pacific Rim Mineral Resources and Reserves PACIFIC RIM MINERAL RESOURCES AS OF JANUARY 17, 2008 RESOURCE MEASURED INDICATED MEASURED & INDICATED INFERRED RESOURCE Au Ag Au Ag Au Ag Au Ag AREA Mt Au g/t Ag g/t Mt Au g/t Ag g/t Mt Au g/t Ag g/t Mt Au g/t Ag g/t Moz Moz Moz Moz Moz Moz Moz Moz BALSAMO
Slide 17: Overview: Republic of El Salvador
Overview: Republic of El Salvador • Capital: San Salvador • Population: 6.1 million • Currency: USD • GDP (PPP): $47bn • Literacy Rate: 84% • Unemployment rate: 6.9% • Language: Spanish • Exports: coffee, sugar, chemicals • Presidential Government system • Civil law, judicial review of legislative a
Slide 18: Overview: Mining in El Salvador
Overview: Mining in El Salvador • Government owns all mineral rights • Mining laws do not discriminate between nationals and foreigners • Current mining law enacted in 1996, last amended 2001 • Environmental Impact Study (EIS) permit • Issued by Ministry of Natural Resources and the Environment • Re
Slide 19: oceanagold.com
oceanagold.com Innovation Performance Growth