MINOTAUR MINOTAUR EXPLORATION LIMITED ACN 108 483 601 ASX: MEP
26 November 2015
MINOTAUR
EXPLORATION
Release
asx
We attach the presentation to be delivered at today's Annual General Meeting of Minotaur Exploration Limited's shareholders.
Yours sincerely,
Donald Stephens
Company Secretary
LEVEL 1, 8 BEULAH ROAD, NORWOOD, SOUTH AUSTRALIA 5067 T +61 8 8132 3400 F +61 8 8132 3499 E admin@minaturexploration.com.au
www.minotaurexploration.com.au
Minotaur Exploration Limited | ASX: MEPAGM presentation
Andrew Woskett, Managing Director
26 November 2015
1
Overview - Minotaur's points of difference
Enviable record of exploration success
Focus and quality of core assets underpins exploration potential in QLD & SA
Geoscience concepts endorsed by multiple state government agencies (QLD, SA, WA)
In the top 10% of most active 'junior miners' for exploration activity through FY2015
History of responsible capital management with a strong balance sheet
High profile share register
New major shareholder in Sprott
Demonstrated ability to attract and maintain supportive JV partners
Business model based on JV funding, optimises cash reserves and maximises returns on exploration investment
Pursuing divestment of non-core assets to realise value not reflected in share price
Corporate snapshot
Strong register, bolstered by Sprott's recent investments, plus quality JVpAbaoruttnMienortsaur Exploration (ASX: MEP)
Primary focus on copper and gold exploration in QLD and S.A.
Core geology team responsible for Prominent Hill discovery
still in place at Minotaur
Supportive and high quality JV partners
Divesting non-core assets (nickel and industrial minerals)
Share price performance over last 2 years
Share price (Ac per share) Volume (m)
Major shareholders
Sprott Inc (TSX: SII) a global resources invested fund & investor client 12.3%
Yarraandoo Private Australian mining investor 6.0%
OZ Minerals Copper-gold miner with a market capitalisation > A$1bn 4.0% Newmont One of the world's largest gold producers with operations across 5 continents 2.6% FMR Investments Owner/operator of the Eloise copper-gold mine, Qld 1.4%
Top 10 31%
JOGMEC Japan Oil, Gas and Metals National Corporation; Japanese Government entity
Sumitomo Metals Mining Oceania Major global metals producer
Sandfire Resources Australian copper-gold producer
OZ Minerals Australian copper-gold producer
Red Metal Australian minerals exploration company
Deep Exploration Technologies CRC, Geological Survey of SA, Boart Longyear
Collaborators on 'Mineral Systems Drilling Program 2015'
JV partners & collaborators
30 24
25 20
20 16
15 12
Financial information
10 8
Number of shares 202.6m
Market capitalisation A$13.4m
5 4 Share price (25 November 2015) A$0.066
! !
Nov!13 Feb!14 May!14 Aug!14 Nov!14 Feb!15 May!15 Aug!15 Nov!15 MEP daily volume ASX Small Resources (rebased) MEP share price at close
Source: IRESS
Net cash (25 November 2015, unaudited) A$4.7m
Listed investments (25 November 2015) A$0.8m
Enterprise value A$9.9m
Capital raising structures
Arrangements attractive to both current shareholders and our new investorsPlacement
(completed)
Entitlement offer
Placement on 13 November 2015 raised A$1.58m
Placement price of A$0.070
Slight premium (4.5%) to Minotaur's share price (A$0.067) as at market close on 10 November 2015
Modest discount (1.3%) to the 15 day VWAP in Minotaur's shares as at close on 10 November 2015
1 free option ("Option") for every 1 share issued
Exercise price of A$0.095, expiring on 30 November 2017
Significant value to investors from options, particularly in smaller resource companies where exploration results can markedly impact share price
Including A$1m cornerstone investment from a fund affiliated with Sprott Inc. ("Sprott", TSX: SII), a leading North American-based asset management firm
Sprott & a high net worth client also acquired all of the Minotaur shares held by Norilsk Nickel Aust P/L
Sprott's & client's investments establishes it as Minotaur's largest shareholder with 12.3%
Pro rata non-renounceable entitlement offer to raise up to A$1.4m
Shareholders entitled to 1 share for every 10 shares held at the Record date (est. 4 December 2015)
Entitlement offer on substantially the same terms as the placement (including with respect to the options)
Shareholders expected to have the ability to apply for oversubscriptions
Further details and timetable to be announced shortly
Forward work program
The capital raisings support Minotaur's work program through 2016OSBORNE
JOGMEC JV
surveys
ELOISE
IP surveys and drilling
3 geophysical surveys underway to generate multiple targets for drill testing
Targeting IOCG and ISCG styles of copper-gold mineralisation and Cannington-style silver-lead-zinc mineralisation in the Mt Isa block
Resumption of field work around the Artemis/Sandy Creek area
IP surveys now underway are extending the zones of anomalism and infilling recent IP lines to help sharpen drill orientation at several sites
Develop discussions with potential JV partners to conclusion & resume drilling
PROMINENT HILL
collaboration
Data interrogation
Assimilation of OZ Minerals' database for the area around Prominent Hill mine has commenced; target identification phase to launch in January
Then move prospects to the 50/50 'on-ground proofing' phase with OZ Minerals
GAWLER RANGES
Deep drilling
Deep drilling at the Gawler Ranges MSDP project is underway. First hole completed
Drilling is funded by SA Geological Survey through Dept. State Development
Total program of 10 diamond drill holes for 5,000m over 4Q15/1Q16
LEINSTER
WA Nickel drilling
Diamond drilling underway at the Valdez massive sulphide EM prospect which lies 8km north from the old Waterloo nickel mine
Drilling is co-funded by a WA DMP grant
Minotaur's exploration focus
Minotaur's strength is the discovery and conversion of exploration assets into mineable depositsMinotaur has 20 years of experience as an ASX-listed exploration entity
Our strategy for continued growth is underpinned by our focus on copper and gold, and our ambition to develop exploration success into viable mining operations
South Australia focus
Prominent Hill brownfields
Exploration JV with OZ Minerals
Gawler Craton
Collaboration Agreement (SA Government through DSD, Deep Exploration Technologies CRC)
Other assets
Seeking to monetise non-core assets:
Western Australia nickel/gold
South Australia industrial minerals
Border JV (Sumitomo)
Queensland focus
Eloise project
Artemis polymetallic discovery
Altia JV (Sandfire)
Osborne project
JV with JOGMEC
Cloncurry North project
Corkwood (JV with Red Metal)
JOGMEC Cloncurry JV
Ernest Henry area
Queensland focus - Projects overview
Extensive land position strategically acquired around known Cu-Au mining centresQueensland projects
North Cloncurry projects (refer slide 9)
North Cloncurry project areas cover three separate projects including two joint venture arrangements
Projects prospective for copper-gold
Includes area of 600km2 under Cloncurry JOGMEC JV
Eloise project (refer slide 10)
Exploration tenements located close to the operating Eloise mine
Two main assets near Eloise:
Artemis polymetallic discovery (100% MEP)
Sandfire JV over the Altia Pb/Zn deposit
Osborne project (refer slide 11)
JOGMEC to spend A$3.5m over 4 years to earn 51% interest in the project
7
Queensland - North Cloncurry projects
North Cloncurry projects cover three separate areas: the JOGMEC JV, the Corkwood JV and the Ernest Henry areaJOGMEC CLONCURRY JV (Minotaur 44.3%)
JOGMEC Cloncurry JV north of Ernest Henry Mine area has operated since 2010
Drilling program at JOGMEC Cloncurry completed in 2Q15 with copper mineralisation establishing regional fertility
Attention now focused on generating similar targets within the JV area
Corkwood Project (farm in to earn 51%)
Farm in agreement with Red Metal Limited (ASX: RDM)
New exploration agreement at the Corkwood Project, located 60km north of Little Eva deposit (59Mt @ 0.6% copper, 0.1g/t gold)
Minotaur has the right to earn 51% of the project by spending A$3m on exploration over 3 years
Ernest Henry Area Project (Minotaur 100%)
Located in close proximity to Glencore's Ernest Henry Cu-Au mine
Queensland - Eloise project
Cclose proximity to the operating Eloise Mine, contains the Artemis discovery, numerous similar targets and the Sandfire Resources Altia JVArtemis and nearby EM-IP anomalies Artemis cross section
Located 20km west of the operating Eloise Mine, target defined through application of classic IOCG exploration techniques
Drilling at Artemis yet to test down-plunge repetitions of the discovery lode
IP results suggest anomalism extends N-S along strike, beyond current drilling; to be RC drill tested
Several similar geophysical targets defined through ground EM and new IP surveys;
IP models Artemis, Bullwinkle & Olympus as compelling drill targets
Altia JV
Sandfire completed first earn-in to hold 60% at the Altia Project, a project covering 2 areas totalling 43.7km2
Sandfire elected to continue to sole fund additional A$4m on exploration at the project to earn a further 20% project interest
Queensland - Eloise project
Artemis and nearby EM-IP anomalies
10
Queensland - Osborne project
New JV agreement implemented with JOGMEC, extending the strong working relationship built over many yearsJOGMEC JV Osborne tenements
New joint venture to explore ~1,800km2 area around Osborne mine
and Cannington mine, initiated October 2015:
Seeking copper-gold mineralisation proximal to the Osborne mine and silver-lead-zinc mineralisation south of the Cannington mine
JOGMEC to expend A$3.5m to earn 51% interest in the project
Minotaur operates the work program in consultation with JOGMEC's geoscientists:
Assessing the potential for base metal mineralisation using ground gravity, ground EM and IP surveys, before embarking on specific drill programs
Airborne electromagnetic (AEM) survey was completed in early 2015 (funded by QLD Geoscience agency) over the northeast part of the Osborne project area
AirMag, IP and EM surveys presently underway across a variety of target zones
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