Regency Mines One2One Investor Forum 30th January 2013 (PDF)

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Regency Mines One2One Investor Forum 30th January 2013 (PDF)

January 2013


Disclaimer

These presentation slides (the “Slides”) do not constitute an offer to the public or an offer for sale or solicitation to

purchase or subscribe for any securities of the Company and they should not be relied on in connection with a decision

to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not

constitute a recommendation regarding any decision to sell or buy securities in the Company. If any person is in doubt

as to the contents of this presentation, or wishes to obtain advice as to the investment merits of the Company’s

securities, he should seek independent advice from a person who is an authorised financial services provider.

No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the

accompanying verbal presentation or the completeness or accuracy of such information. The information contained in

these Slides and the accompanying verbal presentation is in the public domain, however no representation or warranty,

express or implied, is given by or on behalf of the Company, its shareholders, directors, officers or employees or any

other person as to the accuracy or completeness of the information or opinions contained in the Slides and the

accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the

case of negligence, but excluding any liability for fraud).

The Slides are not for distribution in, nor do they constitute an offer of securities for sale in, any jurisdiction where such

distribution or offer is unlawful. The distribution of the Slides in some jurisdictions may be restricted by law and persons

into whose possession this document comes should inform themselves about and observe any such restrictions.

Statements made in the Slides and accompanying verbal presentation may include forward-looking statements that

necessarily involve risks and uncertainties. Forward-looking statements may generally be identified by the use of

terminology such as “may”, “will”, ”expect”, ”intend”, “plan”, “estimate”, “anticipate”, “believe”, or similar phrases. Other

than statements of historical facts, all statements, including, among others, statements regarding the future financial

position of the Company, business strategy, projected levels of growth in its market, projected costs, estimates of

capital expenditures and plans and objectives of management for future operation, are forward-looking statements.

The actual future performance of the company could differ materially from these forward-looking statements.

Important factors that could cause actual results to differ materially from these expectations including known and

unknown risks. Undue reliance should not be placed on these forward-looking statements.

2


Corporate Profile

Base Metals, Agrominerals and Mining Technology

London AIM Listing:

RGM

Share Price: 0.9p

Market Capitalisation:

£8.5m

Shares in Issue: 941,752,669

Directors:

Andrew Bell

Chairman and CEO

Edmund Bugnosen Executive Director

Scott Kaintz

Executive Director

John Watkins Non-Executive Director

Julian Lee

Non-Executive Director

Strategic Focus

Mineral Diversification

Scale/Major Resource Development

Value Identification & Realization

Corporate Advisers:

Nominated Adviser

AIM Broker

Broker

Solicitors

Auditors

Grant Thornton UK LLP

Simple Investments Ltd.

VSA Capital

Ronaldsons LLP

Chapman Davis LLP

Company Secretary: Stephen Ronaldson

3


Divisional Summary

Base Metals

Ni and Co - Mambare PNG

Au and Ni - Fraser West

Graphite - Munglinup

Ag and Ti – Pyramid Lake

Cu and Au - Bundarra

Agrominerals

P₂O₅ and K- Sudan

New Tenements - TBD

Mining Technology

Ni-Laterite processing –

Aus/DNi

Apply DNi Technology

Elsewhere

Second JV Project

4


Transaction Pipeline 2013 – a scenario

Sudan

• Earn into IMRAS – Explore to develop JORC Resources

• Sell interest to substantial foreign investors (Cost recovery/JV/Disposal)

RAM

• Develop Fraser West Project via Ram Resources (ASX:RMR)

• Acquire significant and liquid stake in RMR (Cost recovery/Disposal)

Graphite

• Explore potential graphite transactions (JVs/Disposals)

• Seek synergies to create viable graphite vehicle

Agro

• Apply developing agromineral expertise to other projects

• Africa, etc (JVs/Earn-Ins)

Mambare

• Seek strong partner to take project forward (Cost sharing/Part-disposal)

• Lay off risk and transition from project development to investment

5


Base Metal Exploration and Development


Mambare Nickel Exploration Project

o

JORC compliant Mineral Resource Estimate (MRE)

announced 2012

o

162.5 million tonnes grading 0.94% nickel and

0.09% cobalt (combined Indicated & Inferred)

o

Lateritic nickel-cobalt exploration

o Tropical, lateritic Nickel

o Mambare Plateau, Oro Province

o

Exploration license areas

o

584km², 20km long / 5-7km wide

Plateau

o

Exploration history

o 2008 - 3,800 meters drilled

o 2011 - 3,600 meters drilled

EL1390

Significant resource expansion potential with

only 3% of key plateau area explored

Kokoda Township

7


RGM - DNi Joint Venture Structure

7.5%

50% 50%

100%

EL1390

• 20 Year License from DNI for lateritic treatment technology

• Capped at 40k tons per annum

• Options to increase to 90k tons per annum

• Right to a license for any agreed additional project

• RGM 1% GSR on sales revenue from Mambare

8


Mambare Project In Context

Wood Mackenzie/RGM - 2012

9


Mambare Project Update

2012

o

o

o

Maiden resource exceeded expectations with

162,5 million tonnes JORC Resource

DNi completed reverse takeover on the ASX

Bulk sample from Indonesia for Pilot Plant

2013

o

o

Commissioning of DNi Pilot Plant

Pilot plant progress updates

o Examination of MgO by-product credit

opportunities and potential value

Progress

DNi

Testwork

(2013)

Value

Engineering

Results

(2013)

Seek

External

Partner

(2013)

Take

Mambare

to BFS

(2014+)

o

o

Joint Venture to seek major external investors

o Partner with resources and interest in

progressing Mambare

Value Engineering Study (RMDSTEM)

o Identify options for the JV to continue to add

value to the project at low cost

10


Regency Mines Australasia Pty Limited

Tenement Overview

o

Fraser West (Au/Ni)

o Highly prospective Au/Ni targets

o Earn-in agreement in place with RAM Resources

o

o

o

o

o

Pyramid Lake (Ag/Ti)

o Ti anomalies from 2012 drill programme

o Ag anomalies from 2012 MMI sampling

programme – Proximal to Silverlake Resources

Greatlakes Project

Munglinup (Graphite)

o Situated adjacent to known graphite deposit

o Drill programme designed and permits granted

Bundarra (Cu/Au)

o 2013 field season in planning

o Possible JV under consideration

Kambalda (Au/Ni) (Junction South)

o

2013 diamond drill programme under

consideration

Halls Creek (VMS/base metals)

o

Assay results awaited from 2012 field sampling

programme

11


Fraser West (Au/Ni)

Project Update

o

o

o

o

3 tenements granted 18km West of “Nova” discovery

recently announced by Sirius Resources Ltd

o

New Ni-Cu-Co province

RGM tenements straddle two geological

environments

o

o

Tropicana-style gold mineralization

Nova-style base metal mineralization

Oct 2012 deal signed with RAM Resources to acquire

a controlling interest in Fraser West

Sirius announces drilling of its EM anomaly

o

Adjacent to RGM tenement boundary

o Commencing March/April 2013

o

Similar in size to Nova

New EM anomaly adjacent and along strike to RGMA’s

Fraser West tenements

2013 Exploration Programme with

RMR in Planning Phase

12


Fraser West – RAM Resources (ASX: RMR)

Deal Summary

o

RMR can acquire 80% of the Fraser West Project

o Issuance of 1,205,000,000 RMR shares at a deemed issue price of $.0015)

Tranche A: Completed

o RMR issues 40,000,000 new shares to RGM (~3.5% shareholding)

Tranche B: In Progress

o RMR to issue 115,000,000 new shares to RGM (~12.4% shareholding) - Completed

o RGM to appoint Director to RMR Board - Imminent

o RMR to sole-fund AUD $250,000 for exploration activities

o RMR receives 10% of tenements

Tranche C:

o

o

o

Subject to shareholder approval and rights issue of AUD $1,500,000, RMR issues

1,050,000,000 new RMR shares to RGM (~52% shareholding)

RGM to appoint additional Director to RMR Board

RMR receives 70% of tenements

o RGM’s remaining 20% interest free carried until 30 Nov 13

o RMR retains right to remaining 20% for AUD$440k until 30 Nov 13

o RGM retains 1% GRR on the tenements

13


Munglinup Graphite Project

Project Overview

o

Situated adjacent to the high-grade Flake

Graphite deposit known as Halberts Main Zone

o

Initial Field visit completed

o

Drill programme designed & permits granted

o

Plans to drill 3-5 reconnaissance Reverse

Circulation drill lines to delineate graphite

mineralization under consideration

Partnership Discussions On-going

14


Pyramid Lake Project

MMI Soil Sampling Programme Completed

o

o

Significant Ag anomalies highlighted

across tenement

Proximal to the Silver Lake Resources

‘Great Southern Project’

o Future exploration programmes are

currently under review

15


Agrominerals

16


Agrominerals Project Sudan

Overview

o

July 2012 RGM enters into agromineral option with International

Mineral Resources Agrominerals Sudan (IMRAS)

o

o

Nov 2012 Agromineral Option Exercised

Field visits to the licence areas conducted between

July 2012 and January 2013

Current Concession to IMRAS Include:

Abu Hashem

o 80,000km 2 , NW of Khartoum, Northern State

o Primary target- Phosphates

Bayuda

o 40,000km 2 , North of Khartoum, Northern State

o Primary target- Potassium oxide

o Secondary target – Igneous Phosphate

Red Sea

o 70km 2 , North of Port Sudan, Red Sea State

o Primary target- Gypsum

17


IMRAS Earn-in Agreement

100%

Sudan Agromineral Exploration

Licence

• Abu Hashem

• Bayuda

• Red Sea

• Others?

IMRAS

100% STAGE 1 (Completed)

International Mineral Resources

(Agrominerals Sudan) Ltd

• Earn-in agreement after successful Due

Diligence and payment of $100,000

26%

STAGE 2 (In Progress)

• Agreement of terms by which the licenses would progress to mining license and

payment of $250,000

• Upon grant of additional license rights and payment of $150,000

51%

STAGE 3 (2013)

• Completion of a JORC or similar Resource on two of the licences

• Payment/spend of $2,500,000

Potential Exit Opportunities Coming into Focus

18


Current Licence Areas

19


Why Sudan/Why Agrominerals?

o

Why Sudan?

o

Little explored area with great resource potential

o

Major strategic opportunity for investment in Agrominerals

o Prospective geology

o Logistical connections to China and India

o Increasing improvements to power and transport

infrastructure

o

Financial incentives from Sudanese government

o

Why Agrominerals?

o

High demand - increase in the future amid global concerns

over food security

Port Sudan: Container Terminal (Image © Claus Bunk)

o

Strategic importance of agricultural fertilisers and their

components

o

Africa represents key location

o

Agricultural development

o

Source of Agrominerals to India/China/Europe

o

Agromineral Opportunities

o

Strong interest expected in JORC Agromineral resources

o

o

RGM developing geological expertise in Agrominerals

May be applied elsewhere; potential JVs

Image © Biosciences for Farming in Africa

20


World Phosphate Supply and Demand

Europe

FSU

North

America

Demand for Agrominerals

Middle

East

Asia

Latin

America

Africa

Oceania

Africa and ME to Supply High Demand Asian, European and Americas Markets

21


Activities and Planning

Project Activities

o

Dec 2012: Field visit by RGM geologists to Abu Hashem

Licence

o

Dec 2012: Sudanese Ministry of Mines and Minerals visit

RGM offices in London

o

o

o

Cement relationship with key Sudanese officials and

departments

Productive technical meetings assisted identification of

targets at Bayuda

Future license options considered

o

Jan 2013: Field visit by RGM geologists to Bayuda Licence

o

Jan 2013: Technical Report presented to ministry

o

Plan and execute a greenfield exploration programme

during 2013

o

o

o

o

Sampling

Geological mapping

Remote Sensing

Geophysics

Drill Target

Identification

22


Abu Hashem and Bayuda Field Visits

Multiple field visits to Abu Hashem and

Bayuda licence areas (Dec’12-Jan’13)

o

Recent Activities and Results

o

o

o

o

Primary Phosphate target identified

Key exposures examined

Historic mine-workings visited

Field training begun with Sudanese

geologists

o

Current Work

o

o

Results under analysis

2013 exploration programme under

review

23


MINING

TECHNOLOGY

24


An elegant and robust flowsheet

Investment in Direct Nickel (DNi)

Overview

o RGM supported and invested in DNi since 2009

o

o

o

o

o

o

RGM holds 7.5% stake in now ASX listed firm

Jointly operates the Mambare Nickel project

Developing revolutionary nickel processing technology

Multiple blue chip investment partners

Secure IP through extensive patents

R&D completed, commercial scale test work commencing at

test plant facility in Perth

Development Status

o

Stage 1 of test plant completed

o 200T bulk sample arrived in Perth from Indonesia late 2012

o Pilot Plant commissioned January 2013 and operating 24/7

on initial bulk samples until Q3 2013

Holding RGM Remains Sole Liquid Route for Exposure to this

Exciting Mineral Processing Technology

25


An elegant and robust flowsheet

DNi Process Overview

Differentiators

o Atmospheric pressure processing

o

o

o

o

o

Basic stainless steel utilized

Uses nitric instead of sulphuric acid

Acid consumption of 20-30kg per

tonne of ore vs. 500-1,000 kg per

tonne using sulphuric

Scalable plant size – low

CAPEX/OPEX

Valuable by-product credits

o Treats all laterites – limonites +

saprolite

Potentially ‘disruptive technology’

26


DNi Funding and Listing Status

o

o

Teck Resources Funding

o Investment confirmed Oct 2012

o

Commits the balance of Stage 1 costs for $2.7m,

with an option to fund Stage 2, a further $5.02m

Windward Prospects (London Investor)

o

o

Subscription agreement signed paying two

tranches (A$1.85m and A$3.15m)

Second tranche tied to Teck Resources funding

Stage 2

o

Listing Status

o

o

ASX listed and currently suspended from trading

at its own request

Plans to resume trading

27


CORPORATE INVESTMENTS

28


Spin-offs and Strategic Holdings

Red Rock Resources (AIM: RRR)

o RGM floated Red Rock Resources on AIM

o Gold production and exploration, iron exploration activities

o Market Cap of £10.86m

o RGM retains 13.29% stake worth £1.55m

RAM Resources (ASX: RMR)

o Buying up to 80% of Fraser West Project from RGM

o Option on remaining 20% for $440k

o RGM currently holds 155m shares (11.5% of RMR)

o Market Cap of ~£2.2m before fundraise

o Ultimate RGM stake in enlarged RMR could approach 50%

Total Holdings of £4.89M or 58% of RGM Market Cap

29


Spin-offs and Strategic Holdings

Oracle Coalfields (AIM: ORCP)

o Listed on AIM 2011

o Market Cap of £4.28m

o 8.48% RGM Shareholding

o Value of £472k

Direct Nickel Limited (ASX: DNI)

o Listed on ASX; currently suspended

o 7.5% RGM Shareholding; JV partner

o Estimated value of £2.6m+

Alba Mineral Resources (AIM: ALBA)

o Listed on AIM

o Market Cap of £429k

o 20.68% RGM Shareholding

o Value of £94k

30


Contact Details

Investment or Project Enquiries:

Andrew Bell

Chairman and CEO

Email: Andrew.Bell@regency-mines.com

General Enquiries:

Scott Kaintz

Director

Email: Scott.Kaintz@regency-mines.com

Marketing or CSR Enquiries:

Natasha Walton

Head of Marketing and Community Affairs

Email: Natasha.Walton@regency-mines.com

Press Enquiries:

Sandra Spencer

Press and Public Relations Consultant

Email: Sandra.Spencer@regency-mines.com

Registered Office:

55 Gower Street

London

WC1E 6HQ UK

Incorporated in England and Wales Co. No. 5227458

Business and Postal Address:

115 Eastbourne Mews

London

W2 6LQ UK

Phone: +44 (0)207 4024 580

Fax: +44 (0)207 4028 738

31

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