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Sponsoring Broker
Pre –IPO Capital Investment Opportunity
Duke Exploration Pty Ltd
DISCLAIMER AND IMPORTANT INFORMATION
This document is not a prospectus and does not satisfy the disclosure requirements for a prospectus required under the Corporations Act 2001 (Cth) (“the Act”). The information contained in this document relates solely to the private offer to invest in Duke Exploration Limited ABN 28119421868 (“Duke”, “DE” or “the Company”) as set out herein. Novus Capital Limited (AFSL No 238168) (ABN 32 006 711 995) is assisting the Company with the capital raising detailed in this document. This document is being made available to a limited number of sophisticated (s 708) prospective investors (“Prospective Investors”) solely for information purposes of assisting them in making an initial evaluation of whether to invest in the Company and as such is an Excluded Offer. It is not intended for use by any person who is not a sophisticated investor or professional investor, as defined in the Act. Additionally, the shares to be offered under the offer have not been, and will not be, registered under the U.S. Securities Act and may not be offered or sold in the United States. No disclosure document will be issued in relation to an offer of the Company’s securities.
This document does not purport to contain all information that Prospective Investors may require to make an informed assessment of the Company or its securities. Prospective Investors should rely on their own investigations, including of the risks associated with an investment in the Company. Before making an investment, Prospective Investors should consider (with the assistance of professional advice) whether an investment in the Company is appropriate in light of their particular investment objectives and financial circumstances.
Each of the Company, its shareholders and its affiliates, and any of their officers, employees, agents, advisors, or representatives (Representatives), makes no promise, representation or warranty of any kind as to the accuracy or completeness of this document. They assume no duty of care to any Prospective Investors. No information contained in this document or any other written or oral communication transmitted by the Company or made available to a recipient is a promise, representation or warranty of any kind. A Prospective Investor, by accepting and reading this document, agrees that it will not rely upon any such information or communication. In addition, the Prospective Investor agrees that any projections and estimates or other forward-looking statements contained in this document involve assumptions and are subject to risks and uncertainties (many of which are outside the control of the Company) which are likely to cause actual results to differ. Such assumptions, risks and uncertainties include Company specific matters, industry market conditions, general business, economic, and market conditions, as well as national and international political, military, and social conditions. Accordingly, the Company gives no assurance as to the accuracy or attainability of any forward-looking statements.
This document is confidential. Neither this document nor any other material relating to the proposal described herein may be copied, reproduced, shown, distributed or issued to any other person at any time without the prior written consent of the Company nor may the information contained herein be discussed with any other person without the prior written consent of the Company. By receiving this document, a Prospective Investor agrees to be bound by the restrictions in this disclaimer.
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DUKE’S INVESTMENT OPPORTUNITY
• 100% interests in 6 tenements focused on potential “company
maker” gold, copper and cobalt opportunities within Qld &
NSW.
• Drill ready targets associated with historical exploitation that
lacked the understanding of modern mineralisation concepts
and data to properly evaluate deposits.
• Well credentialled, experienced public company board and
management team with long history of successful exploration
target identification.
• Duke seeking $420,000 in pre-IPO seed capital at 10 cps
(representing a 100% uplift on the proposed issue price) to top
up funding requirements for Q 3 2018 IPO on the ASX.
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Sponsoring Broker
DUKE’S PORTFOLIO – BUNDARRA EPM 26499
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BUNDARRA PROJECT, EPM 26499
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▪ EPM 26499 encompasses a large felsic intrusive complex flanked by conspicuous topographic ridges formed by erosion resistant metamorphosed sediments.
▪ Project hosts numerous historical gold, silver and copper workings within the intrusive complex and surrounding contact metamorphic aureole.
▪ Extensive geophysical data base acquired in the 2010’s never utilised due to corporate strategy of the acquirer and failure to lodge data with Govt.
▪ Duke recently gained access to this valuable (>$500k) VTEM data base.
▪ Geophysics implies far more continuous and extensive contact metamorphic aureole as well as the presence of several potential buried porphyritic bodies, greatly enhancing overall prospectivity.
▪ Historical drilling results reveal this contact metamorphic aureole is associated with significant copper mineralisation - intersections at Flora and Quorn (separated by 5 km) intersecting 18 m of 1.27% Cu and 48 m of 0.58% Cu, respectively.
Flight line distribution of geophysical VTEM data.
BUNDARRA PROJECT, EPM 26499
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Historical drill results include 7.34 m @ 0.96% Cu, 18.29 m @ 1.27% Cu, 2.56 m @ 2.83% Cu, 5.4 m @ 0.69%Cu , & 6.24 m @ 0.50% Cu. Associated with EM anomaly, Cu-Au surface geochemical anomalies.
Historical drill results includeMFP1 48 m @ .58% Cu, MFP2 44 m @ 0.46%Cu.
Associated with EM anomaly, high Cu geochemistry.
BUNDARRA PROJECT, EPM 26499
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Geophysics reveals much more extensive and continuous contact metamorphic aureole extending up to 2km into the abutting Back Creek sediments ringing the granitic complex. 44 and 52 m thickness of copper mineralisation intersected in this zone by drillholes at Quorn/Monarch.
Several discrete resistive zones, possibly
reflecting localised intrusive, buried
porphyritic bodies beneath flanking Back
Creek Group sediments. These have
never been drill tested.
BUNDARRA PROJECT, EPM 26499
Post IPO, Duke’s exploration to focus on :
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Delineation of mineralised brecciated
slates at Quorn/Monarch area. Drill
intersections include 48 m @ 0.58% Cu &
44 m @ 0.46% Cu).
Delineation of mineralisation at Mt Flora –
> 3 Mt of potential tonnage @2.6% Cu &
40g/t Ag based on surface mapping
(Elliott, 1987). Drill intersections include 6
m @ 1.4% Cu and 38 g/t Ag;
19 m @ 1% Cu and 4.9 g/t Ag;
10 m @ 0.7% Cu.
Isen – mineralised brecciated surface
associated with ~4.5% Cu & 2 g/t Au.
Mapping. Pursue brecciation along NW
trending fault zone.
PRAIRIE CRK EPM 26582 (APPLICATION).
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Tarramba Crk
Prairie Crk
Mountain View
Torsdale
Prospect
EPM 26582Application
EPM 26581Competing Application
PRAIRIE CRK EPM 26582 (APPLICATION).
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Tarramba Crk
Prairie Crk
Mountain View
Torsdale
▪ Duke has applied for 100% of EPM 26582.
▪ Tenement encompasses numerous historical occurrences of gold mineralisation associated with Grandore granitic complex and Camboon Volcanics of the Auburn Arch.
▪ Located in established mineral province, between Theodore/Carcow (2 Moz) and Mt Morgan (9 Moz).
▪ Encompasses prospective area now recognised for both low and high sulphidation styles of porphyry mineralisation.
▪ Only one competing application (EPM 26581) which has no impact on four identified prospects; Tarramba Creek, Prairie Creek, Mountain View and Torsdale.
PRAIRIE CRK PROSPECT
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Prairie Crk
▪ Prospects identified from historical mining and/or soil and rock chip geochemical anomalies.
▪ Prairie Creek Prospect (identified by CRA in the 1990s) associated with a NE trending en-echelon elevated gold geochem anomaly, extending over 1.2 km and 200 m wide,
▪ Only the southernmost, localised, geochemical high was drilled, despite drilling returns highlighting significant gold intersections.
▪ Two subsequent drill locations by ActivEx also failed to test the other CRA geochemanomalies.
CRA Geochem survey results
PRAIRIE CRK PROSPECT
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Southernmost geochem anomaly tested; drilling intersecting from surface 52 m @ 2.1 g/t including 10 m @ 3.2 g/t & 6m @ 6.5 g/t Au..
PRAIRIE CRK PROSPECT
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.ActivEx follow-up drilling in 2008 didn’t test the localised Au anomaly highs. These remain untested.
• EPM 26582 provides significant drill ready, shallow gold targets within the Prairie Creek Prospect.
• Similarity of geochemical anomalies suggest that additional shallow gold mineralisation occurs along trend, and slightly offset by NW trending faults.
• Potential remains for additional fault partitioned mineralisation.
• Competing EPM 26581 application is does not impact on Prairie Creek Prospect.
COOMERANG PROJECT EL 8539
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COOMERANG PROJECT EL 8539
• EL 8539 lies on the Gilmore Suture Zone, 5-15 km south of the
Adelong Gold Field.
• Gilmore Suture Zone is a major geological fault trend traversing
the Lachlan Fold Belt and associated with significant gold
endowment.
• Specifically associated with
• Mineral Hill (1 Moz)
• Cowal (6 Moz)
• Gidginbung/Temora (4 Moz)
• Adelong/Mt Adrah (1 Moz)
• EL 8539 contains untested drill targets, associated with historical
gold workings, identified along 12 km+ strike length within the
tenement.
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Coomerang
COOMERANG PROJECT
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Gold in rock chips (up to 3.17g/t ), historic workings on N-S shear zone. Conceptual target (combined) of 350,000 oz Au. 7 km along strike from Adelong deposit
Gold in rock chips (up to 53 g/t), historic workings on N-S shear zone. Conceptual target (combined) of 350,000 oz Au.
Gold in rock chips (up to 28 g/t), soils
(2300 ppb), drilling 2 m @ 7.6 g/t Au, 5
m @ 2.6 g/t Au. Conceptual target of
13,000 oz Au.
COOMERANG PROJECT
• Gold mineralisation appears associated with dilationary zones
formed by intersecting NNW trending faulting relating to the
Gilmore Suture, and NNE trending cross-faults.
• This structural association, as seen at Adelong, also appears
within EL 8539, with several prospects known to host historical gold
workings near structural intersections.
• Duke’s exploration focus will be on identifying and prioritizing
potential dilationary zones for drill evaluation.
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CLONCURRY PROJECTS
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CLONCURRY PROJECTS
• 2 Tenements, 100% held by Duke - EPM19253 &
25764.
• Target type – Ernest Henry, IOCG mineralisation
style, copper-gold-cobalt.
• 3D geology modelled and 2 drill ready targets
generated.
• Archer – Identified Cu-Au-Co mineralised zones to be drilled.
• Jasper – gold zones to be extended.
• Close to Cloncurry and infrastructure.
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EPM 19253
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Highly ranked IOCG target. Rock and soil Cu anomaly, magnetic and IP chargeability highs. Historical drilling: 10 m @ 1.65% Cu, 0.16 g/t Au; 10 m @ 1.26% Cu, 0.19 g/t Au; 5.1 m @ 2.15% Cu, 0.2 g/t Au; 10 m @ 0.15% Co
Highly ranked IOCG target. Magnetic and IP chargeability highs. Historical drilling: 10 m @ 1.44% Cu, 0.59 g/t Au.
EPM 19253
Archer and Jasper could host significant IOCG
mineralisation.
Archer
• Includes 5 m @ 2.2% copper and 10 m @ 0.15% Co.
• >500 ppm copper soil anomaly.
• Untested extents.
• Existing model targets 73kt Cu, 7kt Co and 30k oz Au (30
m x 200 m x 300 m).
Jasper
• Drill results include 4 m @ 2.97 % copper and 1.25 g/t
gold
• Untested extensions.
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ARCHER PROSPECT
• 3D modelling shows multiple ore grade zones that could
represent a significant steeply dipping orebody.
• Represent immediate drill targets with associated
encouraging cobalt intersections.
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HoleID From (m) To (m) Interval (m) Co ppm
CA002RC 0 2 2 1060
CA008D 146 147 1 1440
CA008D 149 150 1 1040
CA008D 156 157 1 1050
CA009D 304 305 1 1070
CA009D 306 307 1 1160
CA009D 316 326 10 1546
CA009D 354 355 1 2160
RED HILL PROJECT EL 8568
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RED HILL PROJECT EL 8568
• EL 8568 is 100% held by Duke and associated with porphyry style copper-gold mineralisation, within the Lachlan Fold Belt.
• Targeting “Cadia look-alikes” ( 37 M oz Au, 7.5 Mt Cu).
• Surface results support base metal and gold mineralisation including 0.17% Cu, 11.5 g/t Au.
• Historical workings highlight potentially multiple mineralisation styles including skarn, epithermal and VMS which may be related to buried porphyry intrusive sources.
• Magnetic images show a number of circular and sub-circular magnetic anomalies indicative of buried intrusions, (porphyries?) and associated potential epithermal and
skarn targets.
• These will be the focus for further evaluation prior to drilling.
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RED HILL PORPHYRY POTENTIAL
Magnetic image analysis reveals a number of circular and sub-circular magnetic anomalies indicative of buried intrusions.
RTP
Clustering of potential intrusions consistent with base metal endowment along major NNW trending geological boundary in EL 8568
• Duke has a 10% free carried interest (to BFS) in five NSW Cu-Au
porphyry tenements currently operated by ERM which were recently
subject to a $2 mil raising.
• Drilling targets to test concepts are potentially eligible for state and
federal exploration incentive funding contributions.
• Kenex’s geotechnical alliance with Duke will ensure access to on-
going pipeline of prospect opportunities.
• Kenex prospect identification provided the basis of initial success of
ARM and AZX for their respective ASX listings.
ADDITIONAL INVESTOR HIGHLIGHTS
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0.5
1
1.5
2
2.5
4/10/2005 4/10/2006
AZX Price
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
ARM Price
BOARD
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Toko Kapea, B.A.,LL.B.
Non-Executive
Chairman
Mr Toko Kapea is a Wellington (New Zealand) based director, commercial lawyer and consultant.Toko is a director of Tuia
Group Limited and a partner in Tuia Legal. He is Chairman of Bathurst Resources Ltd (NZ’s largest mining company) and is
a director of Television New Zealand (the state owned broadcaster). He has held legal roles in-house at Meridian Energy,
Bank of New Zealand, St. George Bank NZ and ANZ and sits on the board of Ngāti Apa Developments Limited. Mr Kapea is
also an independent committee member of the Banjima Direct Benefits Trust in Perth, Western Australia.
Eugene Iliescu
Grad Dip. Soc Sci.
Eng Surveying Cert.
Managing Director
Eugene is an Engineer Surveyor holding a degree in Social Science with over 35 yrs experience in the resources sector. He
has extensive experience across a broad industry spectrum including exploration, mine development and operations in
Australia, USA, the Middle East, North Africa, Eastern Europe and the Pacific Region, iincluding Wiarrlie, Yandan and Mt
Coolon gold mines in North Queensland. He was Country Manager for the feasibility and development of Ross Minings the
million-ounce Gold Ridge gold mine development. He was Managing Director for Gentor Resources in Oman, for Auzex
Resources in Australia, and Ronphos (Nauru Government), as well as a number of non-executive directorships.
Dr Gregor Partington
Ph.D. MAusIMM, MAIG.
Non-Executive Director
Dr Gregor Partington is Managing Director of Kenex, and was a founding director of the Auzex Group of companies 2005 –
2012. He is currently the General Manager of Operations for ASX listed Explaurum Limited. Greg has over 35 years'
experience in the exploration industry in Australia, Pacific Islands and Melanesia where he worked as the exploration
manager for Northern Gold, General Manager, Exploration, for Ross Mining NL and Operations Director for Auzex
Resources Limited - where he has been responsible for the discovery and feasibility studies for the development of more
than 10 million ounces of gold for the three companies
Paul Frederiks B.Bus.,
FCPA,FGIA, FCIS, FAICD
Non-Executive Director &
Company Secretary
Paul Frederiks has extensive experience in public company financial and secretarial management following more than 30
years’ involvement as a finance and corporate governance executive in the Australian resources sector. Paul has strong
current knowledge base in listed public company reporting and compliance
MANAGEMENT & ADVISORY TEAM
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Dr Bertus de Graaf, B.Sc.
(Hon), Ph.D. (Univ Bristol,
UK), FAusIMM, MGSA
Advisor
Dr de Graaf gained extensive international experience as exploration manager in various countries whilst working for the
Metals Division of royal Dutch Shell (later Billiton) for 14 years. He was founding director of a number of successful ASX
listed companies, including Managing Director and CEO of Ross Mining NL, from its incorporation until 2000. During his
tenure the Company developed four new gold mines and became an ASX 200 company.
Michelle Stokes, B.Sc.
(Geology)
Technical Advisor
Michelle Stokes has over 30 years work experience across mining, exploration, consulting, and the public sector. She was
responsible for the development of successful mining projects in Western Australia as well as the Northern Gold portfolio in
the Northern Territory. A consultant to the New Zealand Government, she managed its National Mining Index system and
assisted in the implementation of the digital permit system. Michelle is a director and founding partner of Kenex.
Mr. Campbell McKenzie, (B.Sc
(Hons) Geology)
Operations Manager
Campbell McKenzie is a Wellington based consultant and director with over 20 years’ experience in the minerals sector in
both technical and management roles in private and public companies and government.
His most recent role was a seven-year period as Chief Executive Officer for Kenex, with a key element of his role being the
uptake of GIS modelling and spatial analysis for business management by a range of clients in the minerals, renewable
energy, infrastructure and environment sectors. He has worked closely with Dr Greg Partington to identify and secure the
portfolio of projects for Duke.
Campbell is currently a director of Kenex, a senior adviser to TSX listed Chatham Rock Phosphate (TSX-V: NZP) And is
business development manager of RSC Mining and Exploration Limited with business development and is a director of
services company Marine Minerals Group.
The Kenex Team
Strategic Alliance
Kenex Limited is a geological consulting & business development services company based in New Zealand, that utilises their
specialised intellectual property to identify opportunities for business development. Duke has a strategic alliance agreement
with Kenex. The projects within its portfolio were identified and acquired on the basis of Kenex’s prospectivity analysis and
targeting work-flows, and Duke will continue to have access to these tools and expertise on a priority basis.
Kenex is a world leader in this type of work and the strategic alliance will take advantage of this expertise, experience and
credibility to ensure the exploration effort is targeted, focussed and collects new data which will add value to the projects and
ensure that exploration funds are spent in the most efficient and effective manner.
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Existing
Share
Holdings
% Existing
Share
Holdings
No of Share
Holdings
Post this
Raising
% Share
Holding
post this
Raising
Vendors 6,400,000 36.4% 6,400,000 26.2%
Seed/Placement 10,100,000 63.6% 18,039,000 73.8%
Total 16,500,000 100% 24,439,000 100%
Key Cornerstone Investors
• Westrade - Perth based investor (7%)
• Tuia Group - commercial consulting, law firm (4%)
• Wellington, NZ investors (Wellypreneurs) (28%)
• M. Stokes – Dr G. Partington (Kenex founders) (42%)
• Board Members (6%)
POST PLACEMENT RAISING & PRE IPO
Placement Offer :▪ $420,000 through issue of 4.2
mil shares @10cps;
▪ Shares rank equally;
▪ Intention is to undertakeIPO @ 20cps Q3, 2018;
▪ Placement Offer closes 11 May 2018.
▪ Applications via Information Memorandum.
▪ Funds to be applied to pre IPO expenses including on-going exploration expenditure.
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INDICATIVE CAPITAL STRUCTURE: POST IPO
Existing Share
Holdings
% Existing Share
Holdings
Vendors 6,400,000 13.63%
Seed/Placement Investors 18,039,000 38.43%
Public (assuming $4.5 mil @ 20 cps) 22,500,000 47.94%
Total 46,939,000 100%
Enterprise Value at IPO $4.89 M
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FURTHER INFORMATION
FOR FURTHER INFORMATION REFER TO OUR INFORMATION MEMORANDUM AND/OR CONTACT
Eugene Iliescu, Managing Director
Aust (+61) 0418757364
OR
Toko Kapea, Chairman
NZ (+64 4 9798270)
OR
Dr Ray Shaw
Consultant, Novus Capital Limited
Aust (+61) 0419403533
OR
visit Duke’s website
www.duke-exploration.com.au
