AI assistant
MCS SERVICES LIMITED — Investor Presentation 2013
Nov 6, 2013
65377_rns_2013-11-06_735a9fb5-b611-48dc-81d1-b88369fb3393.pdf
Investor Presentation
Open in viewerOpens in your device viewer
1
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
Acknowledgement & Disclosure
----- End of picture text -----
The information in this presentation is published to inform you about Red Gum Resources Ltd ( RGX ) and its activities. All reasonable effort has been made to provide accurate information, but neither RGX nor any of its affiliates, advisers, consultants, agents or any of their respective directors, officers or employees ( Relevant Parties ) warrant or represent its accuracy and RGX reserves the right to make changes to it at any time without notice.
This presentation may contain certain statements and projections provided by or on behalf of RGX with respect to the anticipated future undertakings. These forward-looking statements reflect various assumptions by or on behalf of RGX. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of RGX which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and mineral resource estimation, environmental risks, physical risks, legislative and regulatory changes, political risks, project delay or advancement, ability to meet additional funding requirements, factors relating to title to properties, indigenous land rights and related issues, dependence on key personnel, share price volatility, approvals and cost estimates. Consequently, there can be no assurance that such statements and projections will be realised. Neither RGX nor any of the Relevant Parties make any representations as to the accuracy or completeness of any such statement or projection or that any forecasts will be achieved.
This presentation is not a prospectus, may not contain all information that you may require to evaluate RGX and does not constitute an invitation to apply for, an offer to subscribe for or buy, or an offer for the subscription or purchase of, any securities. This presentation is not for distribution in, nor does it constitute an offer of, securities for sale in any jurisdiction where such distribution or offer is unlawful. Potential investors must obtain their own independent advice and make and rely on their own assessment of the opportunity described in this document. This document is not a recommendation by any person in respect of an investment in, or acquisition of, RGX and does not constitute financial advice. No person makes any representation or warranty (express or implied) as to the accuracy, reasonableness or completeness of the content of this document and no person is under any obligation to update any information in this presentation.
To the extent permitted by law, neither RGX nor the Relevant Parties accept any responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this presentation and all liability is expressly disclaimed and released. Additionally, RGX and the Related Parties make no representation or warranty, express or implied, in relation to this presentation, and to the fullest extent permitted by law, no responsibility or liability (whether for negligence, under statute or otherwise) is or will be accepted by RGX or the Related Parties as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any recipient or its advisers. In furnishing this presentation, RGX and the Related Parties undertake no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.
2
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
Looking Back – last 12 mths
----- End of picture text -----
-
Acquired access rights, conducted geological and geophysical surveys and completed a drilling program at Majada in Region IV Chile which resulted in encouraging new mineralisation discoveries.
-
Consolidated our acreage position in Region IV.
==> picture [260 x 40] intentionally omitted <==
==> picture [260 x 40] intentionally omitted <==
==> picture [260 x 39] intentionally omitted <==
==> picture [260 x 40] intentionally omitted <==
==> picture [260 x 40] intentionally omitted <==
-
Encouraging drill results during Q2 2013 did not lead to investor support, given general lack of business confidence and support for junior explorers.
-
Board proactive in adjusting to meet the challenge of managing affairs in light of the continued deterioration of the investor climate.
-
Discussions with third parties concerning alliances.
-
Focus on copper – gold.
-
Formal process to stimulate a value add outcome for Peruvian assets.
-
Changes in Board Composition.
-
Reduction in fees.
3
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
Exploration Focus
----- End of picture text -----
-
Targeting IOCG deposits.
-
Grading +>1% Copper.
-
First mover advantage, consolidation of fragmented historical concession holdings.
-
Proximity to infrastructure and logistics.
-
Year round weather window and access.
= Region IV Chile
4
==> picture [721 x 541] intentionally omitted <==
----- Start of picture text -----
Region IV Chile
Andocollo Porphyry (Teck) + CMD (Dayton) Red Gum 100%
400Mt @ 0.38% Cu + 3.4Moz Au
Red Gum Acquisition
Los Mantos IOCG (Hot Chili) Third Party Project
Vallecillos Polymetallic (Metminco)
8.1Mt @ 0.82g/t Au, 10 g/t Ag, 1.06% Zn, 0.33% Pb
Mollacas Porphyry (Metminco)
15.5Mt @ 0.51% Cu, 0.13g/t Au
Punitaqui IOCG (Glencore)
Prod. 39,000 tonnes Cu concs. in 2011
Joshua Porphyry (Helix)
Hado Porphyry (Helix)
San Lorenzo IOCG (Salfacorp)
Manuelito IOCG (Manuelito Minerals)
Llahuin Porphyry (Southern Hemisphere Mining)
106Mt @ 0.40% Cu equiv.
El Espino IOCG (Pucobre)
144Mt @ 0.55% Cu, 0.22 g/t Au 0 50
kms
5
----- End of picture text -----
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
1 [st] Mover Advantage
----- End of picture text -----
==> picture [341 x 444] intentionally omitted <==
Opening old gates to new Opportunities
==> picture [272 x 210] intentionally omitted <==
6
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
What’s ahead
----- End of picture text -----
-
Announcement on 30 October 2013 regarding potential alliance with Rio Perdido Copper Ltd (“RPC”).
-
Need to engage in short term sustainable activities which are rewarded by investors.
-
Acquisition of revenue generating projects.
-
Possible divestment of some existing assets.
-
Utilise foundations created by our existing business strategy.
-
Need to ensure sufficient working capital and funds available for new projects.
-
Completion of November 2013 capital raising.
-
Funds to be used for DD with alliance and existing working capital.
7
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
Strategic Alliance
----- End of picture text -----
-
RGX announced on 30 October 2013 that it is currently in negotiations to form a strategic alliance with RPC.
-
RPC has strong Chilean based, experienced management and operational teams and options with third parties to access significant exploration concessions and large scale operating plants as well as smaller, modularised, copper processing plants in Chile.
-
Exact form of future alliance between RGX and RPC is being negotiated and is dependent upon a due diligence process ‐ expected to be completed in coming weeks.
8
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
Potential Benefits
----- End of picture text -----
Potential benefits of RGX ‐RPC alliance:
-
Significant strengthening of acreage position via new acreage access opportunities, largely centred on RGX’s existing Combarbala operational base.
-
Opportunities for fast‐tracking of early revenue through existing large and smaller, modularised scale, mining projects.
-
Increased funding optionality particularly involving the introduction of “bankable”, production based, mining projects.
-
Expanded investor base via access to RPC’s shareholder base and their Chilean networks.
-
Expanded skills base via access to RPC’s network of mining sector professionals and contacts.
9
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
About RPC
----- End of picture text -----
-
Rio Perdido Copper Limited is an unlisted Australian incorporated public company.
-
RPC is headed by Mr Franco Belli who has more than 20 years’ experience in the mining industry including extensive in‐country experience in Chile, Peru and Ecuador.
-
Extensive transactional history in operating mines and concessions within Latin America.
-
Previously involved with the Punataqui mine, located some 15 km north of Red Gum’s Majada Project and held by Glencore since 2010.
-
Financial sector competence via Mr Belli’s prior experience as an analyst and broker including Gresham Securities, Hartley Poynton and Bell Securities.
10
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
RGX Execution of Strategy to Date
----- End of picture text -----
-
Established regional office at Combarbala in Region IV, January 2012.
-
Base for admin, operational activities including core shed and storage facilities.
-
Venue for regional surveillance, local networks provide opportunity flow and skills supply.
-
Active local community involvement, trust building and overall corporate credibility.
-
Strategy already delivered Majada as a new project and discovery together with opportunities in neighbouring properties.
-
• Exploration resulted in RGX making two encouraging new mineralisation discoveries – at Majada and La Negra.
==> picture [277 x 192] intentionally omitted <==
==> picture [277 x 208] intentionally omitted <==
11
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
Corporate Overview ASX:RGX
----- End of picture text -----
| SHARES ON ISSUE: 112 m Share Price (31/10/13) 0.02¢ Market Cap (AUD) $2.2m Debt Nil _ An additional 15m shares are proposed to be issued next_ week, under the Company’s recent placement, announced on 05/11/2013 BOARD OF DIRECTORS:* Ray Shaw Executive Chairman Jennifer Tobin Non Executive Director Torey Marshall Non Executive Director |
KEY SHAREHOLDERS: (21/10/2013) | KEY SHAREHOLDERS: (21/10/2013) |
|---|---|---|
| Directors and Founders | 25.0% | |
| Warman Investments Pty Ltd | 5.72% | |
| Tigermoth Investments Ltd | 4.84% | |
| Community Training Initiatives Pty Ltd | 3.71% | |
| IBT Holdings | 3.14% | |
| Makwadi Ventures Pty Ltd | 2.37% | |
| MGL Corp Pty Ltd | 1.56% | |
| Ivan Brown | 1.24 | |
| Washington H Soul Pattinson & Co | 1.11 | |
| Top 20 shareholders | 60.18 | |
| No of shareholders | ~400 |
==> picture [721 x 86] intentionally omitted <==
----- Start of picture text -----
Contact
----- End of picture text -----
Red Gum Resources Limited (ASX : RGX) Suite 9 Lester Court 75a Angas Street Adelaide, SA, 5000 Dr Ray Shaw, Executive Chairman [email protected] Tel: 08 8223 1680 www.redgumresources.com
13