A conservative approach to the high risk, high return world of early stage natural resource investing

Transcription

1 A cnservative apprach t the high risk, high return wrld f early stage natural resurce investing TSX-V: VGN Crprate Presentatin September 2015

2 Frward Lking Statements This presentatin may cntain frward-lking infrmatin, including, but nt limited t, statements regarding anticipated earnings and earnings per share, anticipated cash flw and cash flw per share, anticipated csts relating t explratin and develpment, and ther expectatins, beliefs, gals and plans f Greencastle Resurces Ltd. (the Crpratin ). Such frward-lking statements may include wrds such as plans, intends, anticipates, shuld, estimates, expects, believes, indicates, targeting, suggests, ptential interpretatin and similar expressins. Such frward-lking statements reflect management s beliefs at the time such statements are made and are based n infrmatin then available t management. Frward-lking statements invlve significant risks and uncertainties. A number f factrs culd cause actual results t differ materially frm the results discussed in the frward-lking statements including, but nt limited t, changes in cmmdity prices, increases in explratin csts, peratinal explratin risks, the uncertainty f reserve estimates and reserve life, fluctuatins in freign currency exchange rates, envirnmental risks, btaining gvernment apprvals, labur disputes and changes in general ecnmic and plitical cnditins. Althugh the frward-lking statements are based upn what management believes t be reasnable assumptins and prjectins, the Crpratin cannt assure investrs that actual results will be cnsistent with such frward-lking statements. Frward-lking statements are made as f the date f inclusin n this website, and the Crpratin assumes n bligatin t update r revise them t reflect new events r circumstances. Please refer t the Crpratin s annual reprt, management infrmatin circular, annual infrmatin frm and ther filings n SEDAR fr further infrmatin n risks and uncertainties that culd cause actual results t differ materially frm frward-lking infrmatin and statements. TSX-V: VGN 2

3 Crprate Overview Greencastle is a diversified investment, financial advisry and venture capital firm fcused primarily n natural resurces. Our business bjective is t remain cash flw psitive while building value fr ur sharehlders in this highly speculative sectr. Prject evaluatin, initial explratin and acquisitin csts are ffset by revenue streams, including: ryalties, gains n marketable securities, jint venture ptin payments, advisry fees and dividend incme. This business mdel has ensured Greencastle s financial stability since 1996 and resulted in minimal dilutin fr sharehlders. TSX-V: VGN 3

4 Capital Structure Ticker TSX-V: VGN Shares O/S 46,182,671 Fully Diluted Shares 50,227,671 Market Capitalizatin $2,770, Week Hi / Lw $0.09 / $0.05 Management 18% Greencastle currently trades at a discunt t bk value N debt r liabilities Cnducting a nrmal curse issuer bid t repurchase up t 3,981,805 shares ver a perid f ne year TSX-V: VGN 4

5 Management and Directrs Anthny Rdenburg Funder, CEO & Directr Crprate develpment and investment industry executive since 1987 Funder and Directr f several public cmpanies James Pirie President & Directr 40+ years in glbal mineral explratin as a gelgist Previus experience includes Breakwater Resurces, Granduc Mining, Hmestake and Ess Minerals Chris Irwin Directr Securities lawyer and Principal at Irwin Lwy LLP Recent Past Directr f Trelawney Mining and Explratin which was acquired by IAMGOLD Michael Pwer Directr 50+ years f experience in the mining industry, including 22 years with Nranda and Heml Currently a Directr f San Gld Crp. and SGX Resurces Inc. TSX-V: VGN 5

6 Investment Highlights Three Active Gld Explratin Prjects in Nevada: Battle Muntain Trend Pipeline/Crtez Hills, Nevada: Indian Creek clse t Crtez camp, available fr jint venture partner Jewel Ridge ptined t Rainbw Resurces Ltd (TSX-V: RBW) Lander Cuntry, Nevada (55 km suthwest Assigned t Devern Resurces Ltd (TSX-V: DVR) Cash Flw: Oil and gas discveries in Saskatchewan cnverted t ryalty Discvery csts: $1,000,000 Ryalties t date: ver $10,000,000 Business Develpment: Unlck value in gld explratin prtfli thrugh ptin agreements and jint ventures Gld explratin prjects expensed (nt capitalized) s value nt reflected n balance sheet despite significant ptential Expsure t resurce prject develpment with minimal risk f wnership dilutin TSX-V: VGN 6

7 Prperty Lcatin - Nevada Battle Muntain Trend Nevada Pr-mining jurisdictin Largest prducer f gld in the United States Mining infrastructure currently exists t supprt future develpment Indian Creek Crtez Area Jewel Ridge 96 unpatented claims & 11 patented claims, cvering 1,510 acres 5 km suth f Eureka and 150 km SSW f Elk, a cmmercial air centre Jewel Ridge Indian Creek 20 cntiguus unpatented claims, cvering 390 acres 10 km nrth f Crtez gld camp and 275 km ENE f Ren TSX-V: VGN 7

8 Battle Muntain Trend Indian Creek Indian Creek 10 km nrth f Barrick Gld s Pipeline and Crtez Hills peratin Sme f the wrld s largest and lwest cst gld mines 2013 prductin: 1.34 M z Au at cash csts f $433/z 11 M z Au prven and prbable reserves Jewel Ridge Jewel Ridge 10 km frm Barrick s Ruby Hill Mine 2013 prductin: 91 K z Au at cash csts f $887/z Greencastle has cmpleted 39 drill hles including 39.6 m f 2.1 g/t Au (2004) Rainbw Resurces cmpleted fllw-up drilling in 2012: 9.1 m f 0.66 g/t Au and 213 g/t Ag including 3 m f 1.1 g/t Au and 601 g/t Ag TSX-V: VGN 8

9 Oil and Gas Ryalties Primate Oil Wells Greencastle il discvery at Primate (2003/4) Currently multiple wells perated by Edge Resurces Inc. (TSX-V: EDE) Gas discvery n Primate Nrth by Sphere (ryalty t Greencastle) Greencastle hlds sliding scale ryalty interest Ryalty incme cmmenced in Q Ryalty incme exceeds $10,000,000 t date Spirit River 50% jint venture with Sftrck Minerals (TSX-V: SFT) Farmed ut t Direct Energy with upfrnt payment f $200,000 and a 2.5% verriding ryalty n future prductin Hrizntal well drilled in early 2014 awaits cmpletin TSX-V: VGN 9

10 Greencastle Investments Devern (TSX-V: DVR) is a diversified mineral explratin cmpany Greencastle is the largest sharehlder wning 65% Diversified Resurce Acquisitins: Rckstne Zinc & Graphite Prperty Ontari, Canada Highly prspective explratin target including 25% graphite ver 24 metres Higher grade zinc samples and intersectins have been discvered within 5 km Nechak Gld Prperty B.C., Canada On trend with New Gld s Blackwater prperty Area has had $600M in acquisitins Breal Agrminerals Ontari, Canada 14% wner f Spanish River Carbnatite prducer Envirnmentally friendly and certified rganic fertilizer TSX-V: VGN 10

11 Investment Summary Trading belw cash value per share ($0.11), January 1, 2015 N value given by the market fr il ryalty, the net present value f which was $636,000 at 10% discunt rate (Dec. 31, 2012) N value given by market fr gld explratin prtfli despite lw cst expsure t significant new discvery areas in Nevada, Ontari and British Clumbia Crprate develpment plans t unlck value in gld explratin assets by JV r ptin will reduce risk and generate additinal cash flw TSX-V: VGN 11

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