IPO May 2021 Exploring for gold in two emerging camps - Northeast Tasmania & WA's Pilbara region - Flynn Gold
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Exploring for gold in two emerging camps – Northeast Tasmania & WA’s Pilbara region
IPO May 2021
Project Portfolio
Highlights
• Outstanding position in two emerging gold camps
• New gold projects being discovered
• Limited historical exploration
• Projects held 100% by Flynn Gold
Pilbara WA
• 6 tenements and applications
• 448 km2, 100% Flynn Gold (via PTR)
• Emerging gold camp
• Adjacent to Hemi discovery by DEG.ASX
(Hemi results incl. 46m at 6.6g/t Au; DEG
Mallina resource 2.2 Moz excl Hemi)
• Modern gold rush
Northeast Tasmania
• 7 granted tenements
• 1,134 km2, Flynn Gold holds 100%
• Early-mover in re-emerging field
• Interpreted extension of Victorian goldfield
• Fosterville-analogous geology
• Orogenic Au and IRGD deposits
2
Flynn Gold Capital Structure
Capital Structure Shares (million)
Current Shares outstanding 31.75
Shares from conversion of Converting Notes1 13.33
Forecast total shares at IPO (pre-money) 45.1
Lead Manager options2 3.000
Exec Director Performance Rights 1.000
IPO offer share price A$0.20/sh
Pre-Money Market Cap A$9.02m
IPO Raising amount $10m Max
IPO Shares issued – new investors 50m
Total Shares outstanding on IPO 95.1m
Post-Money Market Cap $19m
1 Assuming 25% discount to $0.20/sh IPO price
2 3 year options at a 25% premium to IPO price
3 3 year performance rights upon achievement of share price hurdles 3
Flynn Gold Significant Shareholders
Shareholdings post $10m Raise Shares % • Based on Maximum $10.0m raising
• Includes shares issued on conversion of
Foreign Dimensions Pty Ltd
21.7m 22.8% Converting Notes at a 25% discount to $0.20/sh
(C & I Bourke Family)
IPO price
PJ Davis Pty Ltd 4.1m 4.3% • Includes respective associates’ holdings
Clive Duncan 2.8m 3.0% • Excludes shares that may be acquired by parties
in the IPO Offer:
Taycol Nominees Pty Ltd 2.4m 2.5%
• Colin Bourke and/or his associates have
Metal Ventures Pty Limited applied for up to 7.8 million shares ($1.56
1.7m 1.8%
(Garrett Family) million of Shares at the Equity Offer Issue
Price)
Equity Trustees Limited
1.5m 1.6% • Equity Trustees Limited acf Lowell Resources
(atf Lowell Resources Fund)
Fund has applied for up to 1.5million shares
($300k of Shares at the Equity Offer Issue
1
Price)
4
Board and Management
Board & Management
• 4 decades with market leading big box hardware chain Bunnings Group, including as COO and company director. Clive was a key executive
contributor to the establishment and continued development of the Bunnings group, one of Australia’s most recognisable and successful retail
Clive Duncan organisations. Clive has extensive experience leading Corporate/Business Development, including Merger & Acquisitions, Business Integrations,
Chairman Sales and profit Growth, Corporate Governance, Stakeholder relationships, Strategy Development and Marketing. Clive has completed the
Harvard Program for Management development, Finance program at London Business School and is a Member of the Australian Institute of
Company Directors (AICD).
• Long-term significant shareholder of Flynn Gold and predecessor companies
• Over 30 years of exploration management, project assessment and operational experience for multi-national and junior mining and exploration
companies, including Phelps Dodge and Cyprus Gold, in 10 countries and a broad range of geological environments. Specialist in copper and gold
Sam Garrett exploration with additional strong exposure to iron ore, base metals, and specialist commodities. Co-owner and developer of successful private
Executive Director mine operation for agricultural products. Co-founder of Flynn Gold and predecessor company PTR.
• Mt. Eliott, Havieron and Tujuh Bukit discovery credits
• Director and CIO of Lowell Resources Funds Management (LRFM). Qualified lawyer and geologist. He has over 20 years of resources financing
experience, including:
John Forwood – CIO of the ASX-listed Lowell Resources Trust
Director and Consultant – Director of RMB Resources
– Manager of the Telluride Investment Trust
• Independent geologist with 45 years of international experience. He held senior positions with Anglo American and Amax during the 1970s. In 1995,
Mr. Kirwin accepted a role as VP, Exploration for Indochina Goldfields and subsequently became Executive VP of Ivanhoe Mines Limited until 2012,
after which Ivanhoe was acquired by Rio Tinto.
• As a member of the joint discovery team for the Hugo Dummett deposit at Oyu Tolgoi in Mongolia, Doug was a co-recipient of the PDAC inaugural
Doug Kirwin Thayer Lindsley medal awarded for the most significant international mineral discovery in 2004. Other mineral discoveries made by his exploration
Technical Advisor team include the Jelai-Mewet and Seruyung epithermal deposits in northeast Kalimantan, the Eunsan, Moisan and Gasado gold mines in South
Korea, the Moditaung gold deposits in Myanmar and the Merlin Re-Mo deposit in Australia.
• Past Vice President of the Society of Economic Geologists (SEG), he is a board member of the Economic Geology Research Unit at James Cook
University. He holds a Master of Science degree in mineral exploration from James Cook University, where is his currently an adjunct professor.
5
Northeast Tasmania Gold
Northeast Tasmania: under-explored Mathinna Beds geology and mineralisation - Analogous to Victorian Goldfields
Northeast
Victoria
Tasmania
~$1m2
$81.4m1 Gold Exploration Expenditure 2019/20
(Mathinna)
82 Moz Historic Production 2.7 Moz
200 km Outcropping Zone 100 km
✓ Interpreted Western Lachlan Orogen ✓
✓ Orogenic & IRGS/TAG Style Au ✓
✓ Devonian Granitoids (400-370 Ma) ✓
✓ Ordovician Turbiditic Sediments ✓
1 statewide but dominantly Ordovician turbidite hosted orogenic gold exploration
2 FG1 estimate: Majority portion of spend incurred by Flynn Gold
6
Tasmania – A Tier 1 Mining Jurisdiction
“One of the most mineralised places on the planet”
• Rich in diverse mineral resources and operating mines,
including several world-renowned deposits
• Quality operating and investment jurisdiction - Stable
political and regulatory environment with government and
local community support for mining projects
• Mining Journal’s World Risk Report 2020:
– AA investment risk rating
– ranked 2nd lowest-risk Australian state (Tas 70 pts vs
WA 72 pts)
• Established mining districts, infrastructure and skilled work
force
• Modern rail-to-port networks with access to Asia-Pacific
and European markets
7
Northeast Tasmania Gold – Two Priority Targets
Flynn Gold has a dominant position in the belt and first-mover advantage
Portland Gold Project
Golden Ridge Project
• High-grade “Fosterville-style”
• Multi-million ounce bulk
gold mineralisation confirmed
tonnage gold deposit target
• +20 km strike potential of
• Intrusion Related Gold System
multiple exploration targets
lookalikes:
• Outcropping discovery at Windy
– Fort Knox 5Moz, Alaska
Ridge (10m@5.3g/t Au)
– King of the Hills (Red 5)
• Extensive As-in-soil anomalies
4+Moz, WA
• Govt co-funded maiden diamond
• Flynn has identified extensive
drilling program completed in
gold anomalism over 8km of
2020:
strike within granodiorite-
hornfels contact zone – Windy Ridge
• Limited exploration coverage – Grand Flaneur
• Diamond Drilling planned at • Historic goldfield with limited
Brilliant in May 2021 exploration history
8
Golden Ridge
Bulk tonnage, IRGD/TAG potential and high grade historical intersections – Fort Knox look-alike
Brilliant Prospect DDH (Billiton & MPI, 1980’s-1990’s)
• 34.5m at 1.30g/t Au (trench)
• 73m at 1.76g/t Au from 107m
• 95m at 0.95g/t Au from 126m
• 49m at 1.20 g/t Au from 68m
• 41m at 1.25g/t Au from 295m
• 31m at 1.52g/t Au from 200m
• 11m at 2.66 g/t Au from 22m (RC) Kensington
• Only drill tested over 150m of strike 8km
.
Trafalgar Prospect (Tamar Gold, 2014)
• Single DDH Quartz veining in altered granodiorite
• 0.4m @ 150 g/t Au from 202.7m; plus
• 5.7m @ 1.76 g/t Au from 217m
• One-hole program – never followed-up
9
Golden Ridge Brilliant prospect – IRGD/TAG target
Drill core: Brilliant
Shingle breccia: Kensington
• Broad gold intersections characteristic of IRGD style deposits
• Historical drilling only tests 100-150m of strike. Potentially open in all directions
Visible gold: Brilliant
• No drilling between Brilliant and Trafalgar prospects despite soil, rock stream Geochem and historical workings
• No drilling west of Brilliant prospect
10Golden Ridge Brilliant prospect – IRGD/TAG target
• Historical drilling targeting old
workings and trench results
• Broad intervals of anomalous
gold
• Mineralisation hosted in
hornfels/silicified ridge in
Mathinna Beds at contact of
Open intrusive
• Mineralisation and alteration
consistent with large scale
IRGD/TAG deposit types
• Mineralisation open in all
directions
Open • Drilling only tested 150m of strike
• Extensive (4-5 km) soil
anomalism along strike remains
untested by drilling
• Excellent access, crown land
Open
Strategic Plan:
• Drilling of Brilliant and satellite
anomalies during 2021-22 to
develop potential gold resource Brilliant Drilling Plan View
11Portland Gold Project – Second Priority Target
Portland Gold Project
• High-grade “Fosterville-style”
gold mineralisation confirmed
• +20 km strike potential of
multiple exploration targets
• Outcropping discovery at Windy
Ridge (10m@5.3g/t Au)
• Extensive As-in-soil anomalies
• Govt co-funded maiden diamond
drilling program completed in
2020:
– Windy Ridge
– Grand Flaneur
• Historic goldfield with limited
exploration history
12Portland Project - Victorian ‘Slate Belt style’ Orogenic Gold
• Historic goldfield 1870-1917, mining
grades of 15-45 g/t Au
• +20-30km prospective strike
identified
– Historical workings
– Magnetics
– Rocks, soils surveys completed
• Highlights of previous shallow, wide-
spaced drilling include:
– Grand Flaneur: 1m @ 17.7 g/t
Au from 27m (EOH)
– Blue Bell: 2m @ 7.5 g/t Au from
46m, incl 1m @ 11.3 g/t Au
• Flynn Gold grab sample assays up
to 126 g/t Au (‘Big M’ prospect)
• Flynn Gold Discovery at Windy
Ridge:
– Trench 10m @ 5.3 g/t Au
• 2020 Flynn Gold diamond drilling
program
– Tasmanian Govt grant funding
– Highlights at Grand Flaneur:
• 1.4m at 9.7g/t Au
• 0.5m at 12.75g/t Au
13Portland Gold Project - Grand Flaneur
14Portland Gold System – Comparison to Victorian gold camps
22 Moz 9 Moz 6 Moz
Fosterville
Bendigo Castlemaine
Chewton Portland
Wattle Gully
Camp-Scale Geochem
Dispersion Footprints
• As most mobile in near-surface 10 km
environment
• Sb and Au less so
As enrichment >30 ppm >20 ppm >20 ppm >20 ppm
Sb enrichment >3 ppm >3 ppm >3 ppm >3 ppm
Au enrichment >10 ppb >10 ppb >10 ppb >10 ppb
Modified from Duncan (2020). Compilation of various open file rock lithogeochem data including Gold
Undercover work Report 16 (Arne & House, 2009) 15Pilbara, Western Australia
Pilbara WA
• 6 tenements and applications
• 448 km2, 100% Flynn Gold (via PTR)
• Emerging gold camp
• Adjacent to Hemi discovery by DEG.ASX
(Hemi results incl. 46m at 6.6g/t Au; DEG
Mallina resource 2.2 Moz)
• Modern gold rush
16Pilbara Gold
17Pilbara Gold – Mt Dove
18Timeline and Exploration Budget: A$10.0m IPO
Timeline
IPO
Feb 2018 Nov 2019 Feb 2020 Q2 2021 H2 2021
Aug-Oct 2020 Oct 2020 H1 2021
Soil sampling defines $2.6M private Covid-19 crisis Golden Ridge Portland Follow-up
Increase JV Con Notes Pilbara ground
Windy Ridge prospect capital raise hits Verification and Drilling
ownership % Financing geophysics / soils
Extension Drilling
2018 2019 2020 2021
Aug-Oct 2020 Q3 2020 H1 2021 H2 2021
May 2018 2019 Nov 2019 Stratigraphic drilling Mapping and Regional exploration – Drilling at Golden
Drilling starts at Portland 60% earn-in Tas JV at Portland sampling at Golden NE Tas gold licences Ridge continues
Grieves Zn project Trenching and soil $1.3M spend (WR/GF) Ridge
sampling
Budget
2021 A$m 2022 A$m
Tasman Gold Project 2.3 Tasman Gold Project 3.3 Drill program at Golden
Henty Base Metals 0.2 Henty Base Metals 0.3
Ridge planned to commence
Q2 2021 prior to IPO.
Exploration Pilbara projects 0.2 Exploration Pilbara projects 0.9
Drill program at Portland H2
Project Generation/Acquisition 0.5 Project Generation 0.2
2021
G&A (incl listing costs) 1.6 G&A 0.8
Total 4.8 Total 5.5
Based on $0.7m cash at IPO
19Indicative Timetable: ASX IPO
Stage Indicative Date
Lodgement of Prospectus with ASIC Tuesday, 30 March 2021
Offer period opens for the Equity Offer Wednesday, 7 April 2021
Offer period closes for the Equity Offer Friday, 23 April 2021
Issue of Shares and Broker Options Monday, 3 May 2021
Dispatch of holding statements Tuesday, 4 May 2021
Quotation of Shares on ASX Monday, 10 May 2021
The above dates are indicative only and may change without notice. The Company, in
consultation with the Lead Manager, reserves the right to extend or shorten the offer
period or close the Offers in its absolute discretion and without prior notice. The
Company also reserves the right to not to proceed with all or part of the Offers prior to
issue of Shares. 20Important Notice & Disclaimer
This document is issued by Flynn Gold Limited (“Flynn Gold”) to provide summary information about Flynn Gold and its associated entities and their activities current as at the date of this document. The information contained in this document is of general background and
does not purport to be complete. It is intended only for those persons to whom it is delivered personally by or on behalf of Flynn Gold. By attending this presentation, you represent and warrant that (i) if you are in Australia, you are a person to whom an offer of securities may
be made without a disclosure document (as defined in the Corporations Act 2001 (Cth) (“Corporations Act”)) on the basis that you are exempt from the disclosure requirements of Part 6D.2 in accordance with Section 708(8) or 708(11) of the Corporations Act; (ii) if you are in
the United States, you are a qualified institutional buyer (as defined under Rule 144A under the U.S. Securities Act); (iii) if you are outside Australia and the United States, you are a person to whom an offer and issue of securities can be made outside Australia without
registration, lodgement or approval of a formal disclosure document or other filing in accordance with the laws of that foreign jurisdiction. If you are not such a person, you are not entitled to attend this presentation. Please return this document and any copies and do not
provide this document to any other person.
This document is not, and should not be considered as, an offer or an invitation to acquire securities in Flynn Gold or any other financial products and neither this document nor any of its contents will form the basis of any offer, invitation, contract or commitment. This
document is not a prospectus and does not contain all of the information which would be required to be disclosed in a prospectus.
In particular, this document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Securities may not be offered or sold in the United States unless the securities have been registered under the US Securities Act of 1933 or an
exemption from registration is available.
Neither Flynn Gold nor any of its officers, employees, related bodies corporate, affiliates, agents or advisers guarantees or makes any representations or warranties, express or implied, as to, or takes responsibility for, the accuracy or reliability of the information contained in
this document. Flynn Gold does not represent or warrant that this document is complete or that it contains all material information about Flynn Gold or which a prospective investor or purchaser may require in evaluating a possible investment in Flynn Gold or acquisition of
Flynn Gold shares. Nothing contained in this document nor any information made available to you is, or should be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, present or the future. Neither Flynn Gold nor any of its officers,
employees, related bodies corporate, affiliates, agents or advisers has carried out due diligence investigations in connection with the preparation of this document. You must conduct your own independent investigations and enquiries as you deem fit. The information set out in
this document does not constitute or purport to be a recommendation by Flynn Gold, its officers, employees, agents or advisers and has been prepared without taking into account the objectives, financial situation or needs of its recipients. The information in this document
does not constitute financial product advice (nor investment, taxation or legal advice).
To the maximum extent permitted by law, Flynn Gold and its related bodies corporate and each of their respective directors, employees, officers, affiliates, agents and advisers expressly disclaim any and all liability (including without limitation for negligence) for
representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this document including, without limitation, any historical
financial information, any estimates or projections and any other financial information derived therefrom. In particular, this document does not constitute, and should not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future
performance of Flynn Gold.
This document contains certain forward-looking statements and opinion which are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors, many of
which are outside the control of Flynn Gold. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast.
Information in this document (“Confidential Information”) is confidential and by accepting the invitation and attending this presentation you agree to keep this information confidential and not to disclose it to anyone within your organisation except on a need-to-know basis and
subject to these restrictions, or to anyone outside your organisation. You must not copy, use, publish, record or reproduce any of the Confidential Information or directly or indirectly disclose any Confidential Information to any person without the prior written consent of Flynn
Gold, which may be withheld in its absolute discretion.
All figures in this document are in Australian dollars (AUD) unless stated otherwise.
21Mathew Watkins
Company Secretary
+61 3 9692 7222
mwatkins@leydinfreyer.com.au
www.flynngold.com.au
For a copy of the prospectus,
please go to www.flynngold.com.auAppendix: ASX IPO
Flynn Gold Limited is progressing its IPO – target ASX listing date 10 May 2021
Role Provider
Lead Manager Taylor Collison Limited
CFO and Company Secretaries Melanie Leydin & Mathew Watkins, Leydin Freyer
Legal Counsel Quinert Rodda & Associates Pty Ltd
Project Manager Chris Whiteman
Independent Geologist CSA Global
Independent Accountant & Auditor William Buck
Investor Relations NWR Communications
ASX Ticker ‘FG1’
Timetable is dependent on numerous external factors, including regulatory, and is subject to change 23Appendix: NE Tasmania Gold Project – dominant land position
Mangana Project
24Appendix: Henty Zinc Project
• Historical Zn belt
• Previous exploration provides large data sets. Shallow drilling
• CSA Global report confirms 16 targets with potential for Irish style
and intrusive-related deposits
• Known mineralisation at Grieves, Myrtle, Oceana1, Austral, Silver
King and Mariposa
• Drilling by Flynn at Grieves confirms high grades. Zinc recovery
metallurgical testwork required
• Potential at depth
25Appendix: Koolyanobbing Gold Project, Yilgarn WA
• Yilgarn greenstone belts prolific hosts of gold
• 9 tenement applications within the Marda-Diemals
greenstone belt
• Includes gold and iron ore occurrences
26You can also read
