ABN: 41 141 940 230 ASX:AVK Investor Presentation ARGENTINA MINING LTD BUILDING ON AFRICAN GOLD DISCOVERIES May 2014
DISCLAIMER This presentation is dated 24th April 2014. The information contained in this presentation has been prepared by Argentina Mining Limited ( AVK or the Company ) and contains information in relation to the nonrenounceable pro rata offer by AVK to eligible shareholders (the Rights Issue Offer ) made pursuant to a prospectus under Part 6D.2 of the Corporations Act 2001 (Cth) which was lodged with the Australian Securities and Investments Commission on 17 April 2014 ( Prospectus ). This presentation and the information contained herein is not a recommendation, offer or invitation by any person to sell or apply for securities in AVK in any jurisdiction and none of this presentation document or its contents shall form the basis of any contract or commitment. This presentation is not a disclosure document under Australian law or under any other law. It is for information purposes only. Accordingly, this document neither purports to be exhaustive nor contain all of the information which any reader or prospective investor may require to make an investment decision and it does not contain all of the information which would otherwise be required by Australian law or any other law to be disclosed in a prospectus. Any decision by a person to apply for securities under the Rights Issue Offer should be made on the basis of the information contained in the Prospectus including the risks of the Right Issue Offer disclosed therein and independent assessment as to whether to invest, and not in reliance on any information contained in this presentation. A copy of the Prospectus is available at http://www.argentinamining.com.au/investors/asxannouncements/full/rights-issue-prospectus. Applications for securities offered under the Rights Issue Offer can only be made by using the application form accompanying the Prospectus.. This presentation has been prepared in good faith, but no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, correctness, reliability or adequacy of any statements, estimates, opinions or other information, or the reasonableness of any assumption or other statement, contained in the presentation (any of which may change without notice). To the maximum extent permitted by law, AVK and its professional advisors and their related bodies corporate, affiliates and each of their respective directors, officers, partners, employees, advisers and agents and any other person involved in the preparation of the presentation disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use of or reliance on anything contained in, or omitted from, this presentation. No representation or warranty, express or implied, is given as to the fairness, accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, prospective statements or returns contained in the presentation. Such forecasts, prospective statement or returns are by their nature subject to significant uncertainties and contingencies. The reader or potential investor should make their own independent assessment of the information and take their own independent professional advice in relation to the information and any proposed action to be taken on the basis of the information. Any such forecast, prospective statement or return contained in the presentation has been based on current expectations about future events and is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described. Neither AVK nor its professional advisors have any responsibility or obligation to inform the reader of any matter arising or coming to their notice, after the date of this presentation document, which may affect any matter referred to in the presentation. Readers must not rely on the presentation provided but make their own independent assessment of the presentation and seek and rely upon their own independent taxation, legal, financial or other professional advice in relation to the presentation. The presentation is not intended to constitute financial product advice and does not take into account individual or group investment objectives, taxation situation, financial situation or needs. The distribution of this presentation including in jurisdictions outside Australia, may be restricted by law. Any person who receives this presentation must seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. The distribution of this presentation in other jurisdictions including (without limitation) the United States, Canada and Japan (or to any resident thereof) may be restricted by law and therefore persons into whose possession this presentation comes should inform themselves of and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. The Company s securities have not been, and will not be, registered under the US Securities Act or under any of the relevant securities laws of any state of the United States or of Canada or Japan. Accordingly, unless an exemption under such act or laws is applicable, the Company s securities may not be offered, sold or delivered directly or indirectly in or into the United States, Canada or Japan. The information in this presentation relating to Exploration Results is based on information compiled by Mr Doug Bright and Mr John Stockley, who are Members of the Australasian Institute of Mining & Metallurgy and directors of AVK and Simba Minerals respectively. Mr Bright and Mr Stockley have sufficient experience relevant to the style of mineralization and type of deposits under consideration and to the activities which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bright and Mr Stockley consent to the inclusion in this presentation of the matters based on their information and the context in which it appears.
CORPORATE OBJECTIVES DISPOSAL OF ARGENTINE ASSETS FOR CASH - INITIATED FINALIZE SECURING 100% TITLE OVER TANZANIAN TENEMENT PORTFOLIO BUILD ENTERPRISE VALUE VIA SUCCESSFUL GOLD EXPLORATION ACQUIRE ADDITIONAL GOLD ASSETS WITH STRONG UPSIDE EARLY CASH FLOW IS THE PRIORITY
AVK - ARGENTINA Binding Heads of Agreement executed for the cash sale of the wholly-owned Argentine subsidiary Entropy Resources SA to Oro Verde Limited (ASX:OVL) Two staged payments to AVK - subject to the satisfaction or waiver of the Conditions Precedent to the transaction $200,000 to be received from OVL by 30 th June 2014
AVK - TANZANIA Geita Project (99.95%): Mabale Hills & Mimbili Singida Project (99.95%): Wandela & Winston Experienced local team evaluating gold opportunities, with record of gold discovery Stable political and social environment (English Law) 2014/15 OBJECTIVE DISCOVERY OF LARGE HIGH GRADE GOLD DEPOSIT AT SHALLOW DEPTH
TANZANIA - PROJECT LOCATIONS Major Archaean gold camp with 60Moz gold endowment Total 2011 gold production of 40 tonnes Proactive Mining/Resources Ministry Gold industry is second biggest GDP component of Tanzanian economy Excellent infrastructure Excellent access
TANZANIA CURRENT MAJOR GOLD RESOURCES
TANZANIA - MAJOR PROJECTS RESOURCE TONNES/GRADE COMPARISON (INCL. COMPARISON WITH HILL 50 & TROPICANA PROJECTS IN AUSTRALIA)
SINGIDA PROJECT TENEMENTS & GEOCHEMISTRY
SINGIDA PROJECT Winston High Grade Soil Gold Anomaly Outcropping gold mineralisation Virgin discovery, June 2013; no artisanal work Peak soil values up to 2,370ppb Au Peak rock chip values 3.75g/t Au in BIF Over 600m in strike length Good access UNTESTED POTENTIAL FOR LARGE HIGH-GRADE DEPOSIT
CAPITAL & MANAGEMENT Current Issued Capital 205,038,392 Listed Options AVKO 24,850,003 (exercisable @ $0.20 each on or before 9 March 2015) Unlisted options (IGO) 5,000,000 (exercisable @ $0.05 each on or before 24 December 2016) Share price (52 week range) 0.9-3.3 cents Cornerstone investor Independence Group (ASX:IGO) holding 11.3% Market Capitalisation (at 1.4c/share) $2.87M Cash on hand at 31 December 2013 $0.40M Directors Chairman (non-executive) Director (non-executive; represents ASX:IGO) Director (non-executive) Director (non-executive) Director (non-executive) Company Secretary Doug Bright Tim Kennedy Eduardo Videla John Stockley Allen Lafferty John Arbuckle LOW POST-MERGER MARKET CAPITALISATION
KEY CURRENT SHAREHOLDING Independence Group (ASX:IGO) (Cornerstone and Major Investor) 23,187,443 shares 11.3% Top 40 73.8% Top 100 91.5% Directors shareholdings as per Rights Issue Prospectus: D Bright 826,667 T Kennedy (includes shares held by IGO) 23,379,109 E Videla 10,845,001 A Lafferty 7,152,502 J Stockley 9,547,502 Total 51,750,781 (25.2%) Current number of shareholders as at 7 May 2014 431
DETAILS OF THE RIGHTS ISSUE A non-renounceable pro rata offer to Eligible Shareholders of Up to approximately 102,519,196 New Shares Issue price of 1 cent per New Share, on the basis of One (1) New Share for every two (2) Existing Shares held, and 51,259,598 free attaching New Options, on the basis of One (1) free attaching New Option for every two (2) New Shares subscribed for and issued To raise up to approximately $1,025,192 before costs
BROKER SHORTFALL INCENTIVE OFFER Broker Options offered for subscription under the Rights Issue Prospectus to brokers involved in the placement of any Shortfall under the Rights Issue 5% Brokerage Fee will be paid on all New Shares placed by Brokers under any Shortfall under the Rights Issue Up to approximately 20,500,000 Broker Options offered for NIL consideration to Brokers on the basis of 2,000,000 new Broker Options for every $100,000 worth of New Shares (or part thereof on a proportionate basis) placed under any Shortfall under the Rights Issue. Current Capacity under Listing Rule 7.1 permits the issue of approximately 11,848,259 Broker Options, as at the Prospectus date The Company will in the first instance issue Broker Options utilising its 15% capacity to the extent available. Shareholder approval will be sought if the Company is required to issue Broker Options in excess of its available capacity