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ACQUISITION OF SHENGLONG INTERNATIONAL 5 September 2014 - Africa Down Under Conference AusAmerican Mining Ltd ASX: AIW For personal use only

For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

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Page 1: For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

ACQUISITION OF SHENGLONG

INTERNATIONAL

5 September 2014 - Africa Down Under Conference

AusAmerican Mining Ltd – ASX: AIW

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Page 2: For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

All persons should seek appropriate professional investment advice in reviewing or considering this presentation and all other information

with respect to AusAmerican Mining Limited’s (“AusAmerican” or “the company”) , business, financial performance and operations.

Neither the provision of this presentation nor the information contained therein, or any associated communication to any person should

be taken as constituting financial advice regarding the purchase or dealing of shares in AusAmerican. This presentation does not purport

to provide all information that might reasonably be required to complete a detailed assessment of AusAmerican. Individuals should

conduct their own investigation of investment and financial parameters relevant to their personal requirements for investment purposes.

The presentation may contain forward looking statements regarding the intentions of the Company, and these will be affected

movements in share markets, commodity prices and many other factors beyond the control of Company personnel. The presentation

must be considered in the light of these uncertainties and investments in AusAmerican should be considered as speculative in nature.

The presentation is not a prospectus or similar disclosure document and does not constitute an invitation to apply for shares.

Statements relating to potential quantity and grades of exploration targets in this presentation are conceptual in nature as there has

been insufficient exploration to define a mineral resource and it is uncertain whether further exploration will result in the determination of

a Mineral Resource

Competent Person. The review of exploration activities and results contained in this presentation in relation to the Company’s projects is

based on information compiled by Mr. Richard Holmes.

Mr. Holmes is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of

mineralization and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as

defined in the December 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves

(the JORC Code). Mr. Holmes consents to the inclusion of this information in the form and context in which it appears in this presentation.

Disclaimer

AusAmerican Mining Ltd 2

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Page 3: For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

Capital Structure post Rights issue

Market Cap @ 0.003c Top Shareholders

AU$4 million (at 5 September 2014) Directors and Management - 16%

Gordon Anthony- 16.5%

Top 20 - 75%

Company Overview post placement

AusAmerican Mining Ltd 3

Class Exercise Price/Date

1,333,436,908 Shares

517,921,178 Options Various from $0.006 to $0.09 ; including

57,657,338 Listed Options $0.09 31 March 2015

218, 706,920 Unlisted Options $0.006 31 May 2015

218,706,920 Unlisted Options $0.01 31 May 2017

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Page 4: For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

Executive Summary

• One of the biggest copper mine prospects in Africa

– Exploration permit granted in 2007, covering 742 km2 in the Republic of Congo

– Mining permits granted in 2011, covering 372km 2 of mining area , valid until 2036

– Moubiri is high grade, underground Cu/Pb/Zn DSO grade ore currently in production

– Mindouli is large 1.2 km strike copper deposit with non JORC foreign resource.

• Production commences in November 2013. Current daily production of about 50 tonnes daily.

• Shipment of 1,100 tonnes occurred in February 2014.

– Analysis of the ore shows 6.3% Cu, 23.1% Pb and 25.2% Zn.

• Tax exemption status granted until 2021

• Extensive geological work done since 2007

– Over A$40 million has been expended on the project

• Historically proven area with copper deposit

– The French has been extracting copper from this area since colonial time

• Positive outlook on long term copper, lead and zinc price

• Good & sustainable relations with locals, low-cost labour recruited locally. Government owns 10% of the projects

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Page 5: For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

Transaction

Shenglong International

Investment Ltd (BVI)

Societe Lulu De Mine

(Republic of Congo)

5

100% control

AIW 77.5% of Shenglong

International Investment Ltd (BVI)

• Incorporated under the laws of British Virgin Islands (BVI) in 2012

• Registered office located in Sydney, Australia

• The founder is the Company’s 100% shareholder

• The sole owner of the Company is also the 100% shareholder of Societe Lulu De Mine

• Operating entity

• Founded in 2004 and incorporated under the laws of the Republic of Congo in 2007

• Poly-metal exploration license granted in 2007

• Two exploitation licenses granted in 2011 following successful discovery of sizable copper deposits

• US$103 million consideration; US$1 million deposit paid• US$49 million to be paid 31 Oct 2014 for 54% (70% of Income)• US$54 million to be paid by 31 Oct 2016 for remaining 23.5%• Project ownership at conclusion; AIW 70%, Vendor 20%, ROC

government 10%

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Project Snapshot

Item Description

LocationRepublic of Congo , AKA Congo Brazzaville(not to be mistaken with Democratic Republic of Congo, AKA Congo Kinshasa)

Flagship mining areas Mindouli and M’passa Moubiri

Total area742km2 granted for Exploration in 2007372 km2 granted for Mining, valid from 2011 to 2036

Percentage ownership 90% (10% participation by the Congolese government)

Mineral type Copper, lead, zinc and silver

Grade Cu 5%-6%, Pb 10% – 25%, Zn 20% – 30%, Ag up to 2000 ppm

Distance to nearest port Pointe Noire Port, Less than 500 km from Mindouli and M’passa Moubiri

Income tax 10-year tax exemption by the Congolese government starting from 2011

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The Republic of Congo (Congo – Brazzaville)

Republic of Congo (Congo

Brazzaville)

MindouliMining Area

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Overview – The Republic of Congo (Congo –

Brazzaville)• The Republic of Congo (Congo – Brazzaville), NOT TO BE confused with Democratic

Republic of Congo (Congo – Kinshasa)– Population of 4.4 million with low density (13 people/km2)

• Politically stable since end of civil war in 1999– President Denis Sassou-Nguesso re-elected in 2009 for 7 years

• Long-established international investments in the country (primarily oil)– Total (listed on MIL and NYSE), Eni (listed on NYX and NYSE) and Chevron (listed on NYSE) have

active operations in Congo for more than 30 years

• Strongly supportive government seeking to diversify from dependence on oil exports

• “Candidate Country” under the World Bank’s Extractive Industries Transparency Initiative (EITI) since 2007

• Member of UN, WTO, UNESCO, IMF, African Development Bank, African Union

• Clear Mining Legislation– Government proactively encourages foreign investments

– Minimum 10% government participation

• Low labour costs– Minimum salary for a local worker is 52,500 Congolese

Francs (about AUD56) / month

• Steadily increasing GDP (Purchasing Power Parity)– Data are in 2011 US dollars, sourced from www.cia.gov

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Page 9: For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

Exploration & Mining Activities in M‘Passa-

Mindouli Area

Year Exploration and Mining Activities

Late 19th century • Mapping studies conducted by French geologists

1903 to 1927 • Deposit prospect discovered at Mindouli, Moubiri and other areas by Congo Mining Company

1928 • Exploration work conducted by Duparc and Lagotala in M’Passa

1937 • Exploration work conducted in the tenement by mining delegation from Congo, France and UK

1939 to 1945 • World War II, all exploration and mining activities discontinued

1947• Recommencement of exploration and mining activities

• Prospecting for uranium deposit by the French Atomic Energy Commission

1956 to 1959• Congo Mining Societe Lulund BUMIFOM (the French Overseas Mining Office) completed

extensive exploratory drilling in M’Passa, Mindouli and Moubiri regions.

1966• Mining began in M’Fouati, Hapilo, Yanga Koubanza with an annual production of 170,000

tonnes of ore.

1990s to 2000s • Outbreak of civil war, all exploration and mining activities discontinued

2007• Societe Lulu was granted a poly-metal exploration permit (No. 2007-358) for the M’Passa-

Mindouli tenements covering an area of 742 km2

2011• Following successful discovery of sizable deposits, Lulu applied for and was granted

Exploitation permits for M’Passa-Moubiri and Mindouli which are valid for 25 years

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Main Project Areas (Continued)

Project Area Description

Mindouli • Situated at the eastern end of the initial exploration tenement, on the southern flank of the main anticline

• Exploration work done includes surface mapping, grab and soil sampling, 11 drill holes, and 4 exploration adits.

Moubiri • Located on the northern side of the main anticline• Exploration work done includes surface mapping, structural interpretation,

radiometric survey, 20 drill holes, 8 exploration adits and 5 trenches

M’Passa • Largest and most significant of all historical mining site.• Located over and between two wedge-forming fault zones. Field observations

indicate that ore-bearing formations are substantially thicker within the wedge, which are rich in Pb-Zn. The ore is Fe-Cu rich within the fault zones.

• Exploration work done includes surface mapping, grab and soil sampling, geophysical and geochemical survey and 8 drill holes.

Tchicoomba • Located along the fault zone on the northern arm of the anticline• Exploration work done includes mapping, stream sediment sampling, grab

sampling and geophysical survey

Makaka • Exploration work of geochemical and geophysical studies, geological mapping, cross-fault channel sampling, soil and grab sampling, geophysical ground surveys and 2 drill holes

Mimbodi • Historical mining site• Exploration work done includes geophysical survey, geochemical prospecting,

trenches, and 38 drill holes

Diangala • Located on the southern edge of the anticline• Exploration work includes geological mapping, 18 drillholes and adits

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High grade chalcocite and native silver

at Mindouli

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Moubiri Adit

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Moubiri DSO Cu/Pb/Zn ore

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Moubiri stockpile

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Mindouli Geology and Drill Plan

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Page 16: For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

Key Management

Board

Mr. Peter Landau Executive Chairman

Extensive company experience. Involved in a number of company that have started and operated producing mines in Africa including South Africa, Mozambique, Zambia, Angola and the DRC.

Mr. Malenga Machel Non Executive Director

African based with extensive African experience in mining, mining services, financing, off-take agreements negotiations. Son of the late president of Mozambique and step son of Nelson Mandela.

Mr. Vinod Sharma Non Executive Director

Extensive financial and logistical experience.

Management

Mr. Jim Malone CFO/Company Secretary

25 years commercial experience including 15 years in resources sector.

Mr. Richard Holmes Technical Consultant/Chief Geologist

20 Years experience in mining and exploration geology. 6 years in Business development/Project review for mid sized and major copper and gold listed companies

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P: +61 (8) 9488 5220

F: +61 (8) 9324 2400

E: [email protected]

www.ausamerican.com

AusAmerican Mining Limited

(ASX- AIW, AIWO)

Contact

Mr. Peter Landau Executive Chairman

Mr. Jim Malone CFO/Company Secretary

Ground Floor, 1 Havelock Street

West Perth  WA  6005

Australia

PO Box 1788

West Perth WA  6872

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Page 18: For personal use only - ASX2014/09/05  · For personal use only 218,706,920 Unlisted Options $0.01 31 May 2017 Executive Summary • One of the biggest copper mine prospects in Africa

Thank you!

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