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).
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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
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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.
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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
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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
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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
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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
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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
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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
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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
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Agrominerals
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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
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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
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Current Licence Areas
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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
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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
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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
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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
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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
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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
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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
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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
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