Corporate Presentation
TSX.V : SIR
Metals Investor Forum: November 12th & 13th, 2016
Corporate Presentation Forward Looking Statement THIS MANAGEMENT - - PowerPoint PPT Presentation
TSX.V : SIR Metals Investor Forum: November 12 th & 13 th , 2016 Corporate Presentation Forward Looking Statement THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF
Metals Investor Forum: November 12th & 13th, 2016
www.serengetiresources.com | TSX.V: SIR 2
THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF SERENGETI RESOURCES INC.(”SERENGETI" OR THE "COMPANY") AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A DECISION TO INVEST IN SERENGETI. SERENGETI DOES NOT MAKE ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION. THE RECIPIENT IS CAUTIONED, THEREFORE, THAT IT IS INAPPROPRIATE TO USE THIS PRESENTATION, OR ANY PORTION THEREOF, TO ASSIST IN MAKING A DECISION TO INVEST IN FORMATION.. CONFIDENTIALITY This Presentation is confidential and the contents are not to be reproduced or distributed to the public or the press. Securities legislation in all provinces and territories prohibits such unauthorized distribution of information. Each recipient of the information contained in this Presentation will treat such information in a confidential manner and will not, directly or indirectly, disclose or permit its affiliates or representatives to disclose such information to any other person or reproduce this Presentation in whole or in part, without the prior written consent of Formation. PRELIMINARY ECONOMIC ASSESSMENT (“PEA) The Company cautions that this PEA is preliminary in nature, and is based on technical and economic assumptions which will be evaluated in further studies. The PEA is based on the (as at March 4th, 2013) estimated resource model on the Kwanika Property, which consists of material in both the indicated and inferred classifications. Inferred mineral resources are considered too speculative geologically to have technical and economic considerations applied to them. The current basis of project information is not sufficient to convert the mineral resources to mineral reserves, and mineral resources that are not mineral reserves do not have demonstrated economic viability. Accordingly, there can be no certainty that the results estimated in the PEA will be realized. FORWARD-LOOKING INFORMATION This presentation contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Statements in this presentation pertaining to projected revenues and cash flows, quantity and grade of mineralized materials, estimated mineral prices are forward-looking statements. These forward-looking statements are based on assumptions and address future events and conditions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Many of the assumptions respecting projected revenue, cash flow and quantity of mineralized materials will be set out in detail in the PEA. Such projections are and will inevitably always be dependent on assumptions about future mineral prices and development costs which will be subject to fluctuation due to global and local economic conditions. Further information regarding risks and uncertainties which may cause results to differ from those contained in forward-looking statements are included in filings by the Company with securities regulatory authorities and are available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Quality Assurance/Quality Control The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc.
www.serengetiresources.com | TSX.V: SIR 3
Management Board of Directors David Moore, P.Geo., President, CEO & Director George Tikkanen, B.Eng. Sheri Rempel, Chief Financial Officer Ian Brown, CA Pam White, Corporate Secretary Lewis Lawrick, B.Comm. Michael Thicke, P. Geo. Shares Outstanding 71.3 M Warrants 14.1 M Options 7.4 M Fully Diluted (As of Oct 28th, 2016) 92.8 M Management, Insiders & Founders ~25% ownership Treasury* ~$1.2M Average Trading Volume (90day) 272,000 Share Price (SIR.V Oct 28th, 2016) $0.18 Market Capitalization $ ~12.8 M
Financial information above is from the Company’s August 31st, 2016 Financial Statements and are expressed in Canadian Dollars. To read the full financial statements, please visit the Company’s website at www.serengetiresources.com
www.serengetiresources.com | TSX.V: SIR 4
Waterton Global Resource Fund
Ø Raises US$725 million for gold & copper deals Financial Post June 14th, 2016
BHPB - Real Spark for Cu Demand = Renewable Energy
Ø Lots of Cu needed for wind & solar power Ø By 2040, electricity from renewable will double to 46% Ø BHPB estimates a 4 million ton deficit by 2023 Bloomberg May 26th, 2016
Copper Price
Ø Sanford C. Berstein & Co. “The conclusion is unequivocal to us: The only way by which future
prices.” Globe & Mail June 29th, 2016
www.serengetiresources.com | TSX.V: SIR 5
www.serengetiresources.com | TSX.V: SIR 6
◆ Resurgence in BC Cu-Au mine
◆ Recent deep drilling identified
(e.g. 32-35% combined rate)
exploration expenditures
with respect to Pacific Rim markets
www.serengetiresources.com | TSX.V: SIR 7
*Disclaimer: Mineral resources that are not mineral reserves do not have demonstrated economic viability
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Ø Year 1: Initial 5%, $1.2M ($400,000 WC, $800,000 project expenditure – PAID) Ø Year 2 & 3: Additional 30%, $7M expenditure PROPERTIES INCLUDED: Kwanika, Smoke-Kwanika East, Germansen, Valleau, Rottacker
Ø SIR - operator plus 10% management fee (until 50% ownership) Ø SIR - 1% NSR if diluted below 50%, plus additional 0.5% NSR if diluted below 33.3%, subject to partial buyback rights; Ø SIR retains METC(30%) credits on qualifying expenditures on first $8.2M Ø SIR maintains rights to enter into streaming transactions on all metals subject to DMC having certain off-take rights Ø DMC has right to fund one additional property nominated by SIR, only if proceed to second option
* see NR16-03, April 6th, 2016 for full details www.serengetiresources.com | TSX.V: SIR
0.5 g/t Au
Shell
NW Deep Target
Kwanika Central Zone
Slice looking East (90°) Slice Azimuth: 257° Plunge: 90°
Pyritic Shell in Cover rocks
Pierce Point*
*Hole drilled perpendicular to section line
www.serengetiresources.com | TSX.V: SIR 9
www.serengetiresources.com | TSX.V: SIR 10
2016 Resource Estimate Focus Area
Source: Seabridge Gold Inc.& New Gold Inc Deep Kerr/KSM Seabridge Gold Inc., Stikine, BC
www.serengetiresources.com | TSX.V: SIR 11 New Afton Mine, New Gold Inc., Kamloops, BC
u A high grade keel beneath past producing Afton open pit u Underground block cave production began in 2012 u Mine expansion underway, feasibility of mining deep extensions > 1200m below surface is being considered u Deep drilling below giant KSM Cu-Au system has outlined a resource > 1B tonnes u 1.0 Bt Grading 0.53% Cu, 0.35 g/t Au to depths > 2200m
12 www.serengetiresources.com | TSX.V: SIR
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Priority sulphide target
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Located 25 km NE of Kwanika Cu-Au deposit
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Airborne survey identified deposit scale cluster of strong, discrete magnetic highs one with single line coincident VTEM anomaly
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Target represents a possible skarn-porphyry system or VMS target
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Results pending from ground geophysical / geochemical program completed fall 2016
Original VTEM / Mag Target Additional Targets Additional Targets Possible Intrusive www.serengetiresources.com | TSX.V: SIR 13