IPO Presentation (December 2009)
This document is dated October 2009
Disclaimer This Document and the information contained herein and any presentation (collectively referred to as “Information”) is proprietary to Scandinavian Resources Limited (“the Company”). This Document is not intended for and should not be distributed to any other person than as permitted herein. By receipt of the Document, the Recipient agrees that it will not transmit, reproduce or make available the Document (or any Information contained herein) to anyone other than its professional advisers without the prior written consent of the Company. At the request of the Company, the Recipient will return, as soon as practicable, this Document together with any reproductions of it and any other Information which the Recipient may have received from the Parties. This Document is being provided exclusively to investors that qualify pursuant to Section 708 of the Corporations Act for the sole purpose of providing background information to enable the recipient to review the potential for the provision of equity funding to the Company. It is not intended as an offer, invitation, solicitation or recommendation with respect to any potential transaction. Potential investors must make their own independent assessment and investigation of the opportunity and should not rely on any statement or the adequacy or accuracy of the information provided. Securities of micro cap exploration companies, typically involve a high degree of risk and as such, any investment in the Company must be considered as speculative. The Information provided does not purport to cover all relevant information about any potential investment in the Company. Accordingly potential investors are advised to seek appropriate independent advice, if necessary, to determine the suitability of this investment. The Document contains reference to certain intentions, expectations and plans of the Company. Those intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company or any of their respective directors, employees, agents, advisers and consultants that any intentions, expectations or plans will be achieved either totally or partially or within a prescribed timeframe or that any particular rate of return will be achieved. The Information disclosed relates to the proposed business of the Company at the date of this Document. Material information may have changed since the date the Document was compiled. No responsibility is accepted to advise any person of any change or update any of the Information. Neither the provision of this Document nor any information contained in this Document or subsequently communicated to any person in connection with this Document is, or should be taken as, constituting the giving of investment advice to any person. By accepting this Document you acknowledge and agree to be bound by each of the foregoing statements.
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Who is Scandinavian Resources? • Perth-based mineral exploration company with projects in Norway and Sweden • Currently unlisted, Scandinavian Resources (“SRL”) will float on the Australian Securities Exchange in December 2009 • SRL is the 12th largest exploration permit holder by area in Sweden • SRL’s exploration commodities currently include: •
precious metals (gold and silver)
•
base metals (copper, lead and zinc)
•
PGE’s (platinum and palladium)
•
iron and manganese 3
Experienced team Olof Forslund Damian Hicks
Future Searching for mining asset
Why Scandinavian Resources Ltd?
Current Developed exploration portfolio
Next phase Upcoming ASX capital raise
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Corporate Structure Scandinavian Resources Ltd ACN 132035842 100%
Hannans Scandinavia AB * Reg No. 556737-6263 100%
Exploration permits and applications in Sweden and Norway
* Audited by KPMG, Sweden
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Board of Directors MR DAMIAN HICKS - Chairman (Founder) • Founding Director of ASX listed company, Hannans Reward Ltd, a minerals exploration company, appointed Managing Director of Hannans Reward on 1 July 2007. • Non-Executive Director of Australian funds manager Growth Equities Pty Ltd (www.growthequities.com.au) • Holds a Bachelor of Commerce (Accounting and Finance) from the University of Western Australia, admitted as a Barrister and Solicitor of the Supreme Court of Western Australia, holds a Graduate Diploma in Applied Finance & Investment from FINSIA (formerly the Securities Institute of Australia), a Graduate Diploma in Company Secretarial Practice from Chartered Secretaries Australia and is a Graduate Member of the Australian Institute of Company Directors. MR IAN GREGORY B.Bus, FCIS, FCPA, F Fin, MAICD, CD - Director & Company Secretary • Bachelor of Business from Curtin University and over 25 years experience in the provision of company secretarial and business administration services in a variety of industries, including exploration, mining, mineral processing, oil and gas, banking, insurance and aquaculture. • Previously Company Secretary of: Iluka Resources Ltd which is the largest zircon producer in the world and the second largest producer of titanium minerals, with operating mines in Australia and the USA (6 years); IBJ Australia Bank Ltd being the Australian operations of The Industrial Bank of Japan (12 years) and the Griffin Group of Companies (4 years). • Previously Chairman of the Western Australian Branch Council of the Institute of Chartered Secretaries and Administrators and served on the National Council of 6 that body.
Mr Olof Forslund : highly credentialed Swedish Technical Director • Regional Manager of the SGU’s Mineral Resources Information Office in Mala, Sweden (2003 – 2007); SGU 1999-2007 & 1966 - 1982 • Geophysicist • Extensive international experience in the minerals exploration industry, particularly in the development and application of geophysical instruments and radar technology • Assignments have covered activities in Sweden, Japan, South Korea, Germany, Belgium, Italy, France, Canada and the USA • Founding shareholder and President of MALÅ GeoScience (www.malags.com) (1994 and 1998) - MALÅ is currently the global leader in the design and manufacture of Ground Penetrating Radar (GPR) systems • Extensive network of contacts through Scandinavia covering geophysicists, geologists, drilling companies, government and industry • Responsible for the SGU’s active participation at the Prospectors and Developer’s Conference (otherwise known as PDAC) in Toronto, Canada. 7
Olof Forslund Technical Director Scandinavian Resources Ltd
Orjan Einarsson, Principal GeoPartner AB
Kjell Stenmark Well known Prospector
Amanda Arrowsmith Consulting Geologist
Experienced team 8
Major EU mining centre
Potential for major discoveries
Low Sovereign Risk
Why Sweden? High quality exploration data
VERY large mines
(SGU, MRIO, Mala)
Active exploration
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Sweden: a Major European Mining Centre
Excellent ore potential
• 1,000 year mining history • Largest producer of iron ore in the EU • Leading producer of base metals, copper, zinc and lead • Leading producer of precious metals, gold and silver
Under-explored by modern standards Political and economic stability
• Ranked 15th in the 2009 World Risk Survey (WA ranked 12th)
Excellent infrastructure
Favourable minerals legislation
Low corporate tax World – class databases Mining know-how and highly trained personnel
• Initial exploration permit 3 years – maximum 15 years • Initial exploitation concessions 25 years, rolling 10 year extensions • Government royalty 0.2% of average value of minerals mined • Corporate tax rate 28% • SGU Mineral resources Information Office in Mala • Global leaders in supply of mining technology
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Sweden: very large mines
Kiruna Iron Mine • • • • • • • • • •
Owned by LKAB (Swedish Government) 2Bt iron mine Automated & Underground Production in 2007 was 24.7Mt (76% pellets) Production for 1st three quarters of 2008 was 18Mt SEK6 billion concentrator and pelletising plant produced first pellets in May 2008 Recent decision to invest SEK12.4 billion into a new main level Town must be moved at cost of SEK12.5 billion Capacity to produce 30Mt/y of pellets Mining in Kiruna secure through to 2035
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Sweden: very large mines
Aitik Copper Mine • • • • • • • •
Owned by Boliden, one of Europe's largest producers of copper and a major producer of gold & silver Aitik has produced almost 430 Mt of ore (to 2007) 389 Mt of proven ore reserves grading 0.2 g/t gold, 2 g/t silver and 0.29% copper (as at January 2008) 221 Mt of probable ore reserves grading 0.1 g/t gold, 2 g/t silver and 0.28% copper Measured and indicated mineral resources amount to an additional 1048 Mt Increasing copper production from 18Mt/y to 36Mt/y Investment in new concentrator and mining plant is SEK6 billion The mine and its concentrator started operating in 1968.
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Sweden: active exploration • Only the Swedish state was permitted to conduct exploration until 1992 • Now more than 100 exploration companies now active in Sweden I including: Anglo American Phelps Dodge Rio Tinto Teck Cominco • Australian-listed companies active in Scandinavia include: Dragon Mining Ltd (ASX:DRA) Avalon Minerals Ltd (ASX:AVI) Aura Energy Ltd (ASX:AEE) Northern Iron Ltd (ASX:NFE) Vulcan Limited (ASX:VCN) Golden Rim Resources Ltd (ASX:GMR) • US$92 million spent on exploration in 2007 (US$49:2006)
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Sweden: high quality exploration data SGU Mineral Resources Information Office (SGU) • A ‘one-stop-shop’ for exploration in Sweden All government and private exploration data has been merged and stored • >8,000 exploration reports • 100,000 maps of various kinds • Drill core and drill hole logs • Field notes etc • 20,000 mineralised boulders • >4,000km of drill core SGU offers explorers: • Aerial geophysical data covering al of Sweden (magnetic radiation and electromagnetic) • Ground geophysical data (magnetic, electromagnetic, gravity and petrophysical) • Geochemical data (soils, stream peat, stream sediment and bedrock) • Bedrock data (rock type distribution, age, chemical and mineralogical composition, tectonics and mineral deposits) 14
SGU Mineral Resources Information Office, Mala, Sweden
Drill core archive, > 4,000km of core
Swedish Minister for Resources & Olof Forslund
15 SGU Data Library
Malå, Sweden
• Malå, Sweden is located in Västerbotten county, approximately 950 km north of Stockholm • Home of the SGU Mineral Information Office • Home of Olof Forslund
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SRL: exploration project locations Kiruna Project • Iron (copper) targets • ~30km SW of the giant LKAB owned Kiruna (2Bt) iron mine Lake Embrace (Famnvatnet) • Gold-copper-lead-zinc targets • Located to the south of the Ørtfjell Fe deposit and the Mofjellet Zn-Cu deposit Swampy Mountain (Våtmyrberget) • Platinum and palladium targets • Iron-copper-gold targets • Located in the Skellefte mining district Exploration Project Pipeline • 13 tenements
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Kiruna Project
Scandinavian Resources Ltd
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100Mt@40% Fe
SKU09002
Fe SiO2 Al2O3 P % % % % SKU09006 68.2 1.58 0.6 0.001
SKU09010
Fe % 54
SiO2 Al2O3 P % % % 19.7 0.51 0.036
Fe SiO2 Al2O3 P % % % % SKU09013 64.1 4 0.23 0.007
Au Ag Cu ppm ppm ppm 0.19 3.2 6300
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Luppovare Prospect Fe SiO2 Al2O3 P % % % % SKU09006 68.2 1.58 0.6 0.001
Kjell Stenmark, August 2009
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Kuosatjvare Prospect Fe SiO2 Al2O3 P % % % % SKU09013 64.1 4 0.23 0.007
Olof Forslund & Amanda Arrowsmith, August 2009
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Skuokimjokk Prospect SKU09002
Fe % 54
SiO2 Al2O3 P % % % 19.7 0.51 0.036
Olof Forslund & Amanda Arrowsmith, August 2009
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Kiruna Project High Grade Samples KIRUNA PROJECT
Fe (XRF) SiO2 (XRF) Al2O3 (XRF) P (XRF) Au (ICP-AES) Ag (ICP-MS) Cu (ICP-MS)
Skuokimjokk Prospect
%
%
%
%
ppm
ppm
ppm
SKU09001
49.5
21.1
0.89
0.045
0.559
0.56
125.5
SKU09002
54
19.65
0.51
0.036
0.012
0.18
40.8
SKU09003
34.1
47.1
0.41
0.023
<0.001
0.12
12.7
SKU09004
41.5
36.8
1.18
0.034
<0.001
0.18
8
SKU09005
51.7
17.7
1.51
0.003
0.005
0.09
5.2
SKU09006
68.2
1.58
0.6
0.001
<0.001
0.11
5.3
SKU09007
49.8
17.8
4.21
0.007
<0.001
0.14
13.4
SKU09008
34.1
36.8
6.56
0.193
0.002
0.1
29.3
SKU09009
33.8
33.2
8.14
0.102
<0.001
0.06
8
SKU09013
64.1
4
0.23
0.007
<0.001
0.1
8.4
9.18
44.8
15.2
0.427
0.188
3.2
6300
4.43
68.4
12.3
0.027
0.011
0.47
3670
Luppovare Prospect
Kuosatjvare Prospect
Riekko Prospect SKU09010 Piedjasjt책kka Prospect SKU09012
Collected by Scandinavian Resources Ltd, August 2009
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Lake Embrace (Famnvatnet) Project
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Lake Embrace (Famnvatnet) Project
Massive, banded pyrite-galena-sphalerite ore at Famnvatnet, Norway. Grid reference 469798E 7300161N at an elevation of 628m; Sample JS011.
Cu 1.87% Pb 3.00% Zn 8.05% Ag 105ppm Au 0.621g/t
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Lake Embrace (Famnvatnet) Project
Famnvatnet Prospect Au (ICP-AES)
Ag (ICP-AES) ppm Ore Grade
Cu (ICP-AES) Pb (ICP-AES) Zn (ICP-AES)
ppm % Ore Grade % Ore Grade % Ore Grade FAM09007 0.023 2.93 29.70 JS010 0.013 1.32* 13.00* FAM09008 0.791 114 2.13 3.63 10.35 JS011^ 0.621 105* 1.87* 3.00* 8.05* *Ore Grade (AAS) ^ Boulder FAM09007 (collected August 2009) & JS010 (collected August 2008) are from similar location FAM09008 (collected August 2009) & JS011 (collected August 2008) are from similar location
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Kilvassaksla Prospect August 2009
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Lake Embrace Project samples Lake Embrace
Au (ICPAES)
Ag (ICPMS)
Jofellet Prospect
ppm
ppm
ppm
ppm
%
ppm
FAM09001
0.001
0.16
68.8
4.3
0.73
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FAM09002 Kilvassaksla Prospect
0.01
0.71
27.5
95.5
0.05
22
FAM09003
<0.001
0.44
279
14.7
2.77
44
FAM09004
0.103
0.34
2650
3.8
6.24
20
FAM09005
0.002
0.21
457
3.9
5.03
36
FAM09006
0.008
0.45
3210
6.9
>10.0
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JS008
0.013
0.3
427
4
1.44
141
JS009^ Famnvatnet Prospect
0.025
0.5
3080
<2
7.69
15
FAM09007
0.023
31.1
71.8
>10000
>10.0
>10000
FAM09008
0.791
>100
>10000
>10000
>10.0
>10000
JS010
0.013
14.6
26
>10000
>10.0
>10000
JS011^ *Ore Grade (AAS)
0.621
>100
>10000
>10000
>10.0
>10000
Cu (ICP- Pb (ICPMS) MS) S (ICP-MS) Zn (ICP-MS)
Ag (ICPAES) ppm Ore Grade
114
105*
Cu (ICP- Pb (ICPAES) AES) % Ore % Ore Grade Grade
2.13
1.87*
Zn (ICPAES) % Ore Grade
2.93
29.70
3.63
10.35
1.32*
13.00*
3.00*
8.05*
^ Boulder FAM09007 (collected August 2009) & JS010 (collected August 2008) are from similar location FAM09008 (collected August 2009) & JS011 (collected August 2008) are from similar location
Collected by Scandinavian Resources Ltd, August 2009
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Geophysical survey (VTEM) over Lake Embrace Project completed September 2009
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Preliminary interpretation of VTEM data generated many targets requiring follow up
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Swampy Mountain (Vatmyrberget) Project
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Swampy Mountain Project prospective for IOCG mineralisation
Ag ppm KS08204 8.7 KS08105 32.5 KS08106 29.8
Cu % 0.9 4.56 2.47
W ppm 2,470 1,540 370
Au ppm 0.1 0.1 0.39
Fe %
32.3
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PROJECT
PROSPECT
COUNTRY
Luppovare 1 Luppovare 2 Luppovare 3 Piedastjokko 1 Piedastjokko 4 Piedastjokko 5
COMMODITY Major Projects Fe-Cu-Au Fe-Cu-Au Fe-Cu-Au Fe-Cu-Au Fe-Cu-Au Fe-Cu-Au
Kiruna Project
Lake Embrace
AUNIT CURAREA
Sweden Sweden Sweden Sweden Sweden Sweden
ha ha ha ha ha ha
Farmvattnet 1 - 95 Farmvattnet 96 - 348 Farmvattnet 349 - 564 Ă&#x2013;vre Elsvatnet
Cu-Pb-Zn Cu-Pb-Zn Cu-Pb-Zn Zn
Norway Norway Norway Norway
ha
874 11,755 10,391 2,168 4,258 1,255 30,701 2,275 6,048 5,160
TSTATUS
APPDATE
Granted Granted Pending Granted Granted Granted
8/07/2008 17/08/2008 17/08/2008 8/07/2008 18/08/2008 18/08/2008
Granted Pending Pending Pending
3/10/2008 9/09/2009 9/09/2009 9/09/2009
13,483 Swampy Mountain
Vatmyrberget 1 Vatmyrberget 2
Au-Ag-Cu-Pb-Zn-Ni Au-Ag-Cu-Pt-Pd
Sweden Sweden
ha ha
2,028 2,158
Granted Granted
29/11/2007 8/04/2008
Vatmyrberget 3
Au-Ag-Cu-Pb-Zn-Ni
Sweden
ha
414 4,600
Granted
8/04/2008
Exploration Pipeline Cu-Au Zn-Pb Cu-Au Au Zn-Pb Zn-Pb Mn-Fe Mn-Fe Mn-Fe Mn-Fe Mn-Fe Fe-Cu-Au Fe-Cu-Au Au Pb-Zn Cu
Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden
ha ha ha ha ha ha ha ha ha ha ha ha ha
229 315 214 470 100 100 321 1,006 281 268 324 1200 1,387 400 400 2,293 9,308
Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Pending Pending Pending
7/04/2008 26/10/2007 26/10/2007 28/11/2007 28/11/2007 28/11/2007 9/07/2008 8/07/2008 8/07/2008 8/07/2008 8/07/2008 11/01/2008 8/07/2008 24/09/2009 24/09/2009 24/09/2009
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SRLâ&#x20AC;&#x2122;s strategy includes acquisition of a development/mining asset in 2010
AUD$6.5 million IPO December 2009 (ASX) 20 cents per share (ASX listed) PLUS 1:1 free attaching option (ASX listed) exercisable at 25 cents on or before 31/10/11 Capital Structure Minimum Raising (AUD$6.5m) - Shares Round
Shares
Price
Funds Raised
Vendor
20,000,000
Seed
8,666,667
0.075
650,000
IPO
32,500,000
0.2
6,500,000
61,166,667
Minimum Raising ($6.5m) - Options Round
Options
Ex Price
Expiry
Vendor
20,000,000
0.2
31/10/2012
Seed
8,666,667
0.2
31/10/2012
Directors
2,250,000
0.2
31/08/2011
IPO
32,500,000
0.25
31/10/2011
63,416,667
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Planned expenditure Year 1
Year 2
$
$
Kiruna Project
1,250,000
1,250,000
Lake Embrace
650,000
650,000
Swampy Mountain
250,000
250,000
2,150,000
2,150,000
$ Seed raise
650,000
Total funds raised in IPO
6,500,000
Total funds available
7,150,000
Exploration expenditure
4,435,000
Total Exploration Expenses of the Offers
715,000
Financial repayments
500,000
General working capital
1,500,000
Total funds applied
7,150,000
* Indicative only and subject to change ** Exploration expenditure from 1 July 2009
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Future exploration activities In progress • Review potential development/mining assets • Review potential exploration projects • Work up current gold projects in exploration pipeline to ‘Major Project’ status Nov / Dec 2009 • Complete final VTEM interpretation from Famnvatnet Project March 2010 (next field season) • Complete detailed gravity survey over Kiruna Project • Drill test Kiruna Project to identify source and strike length of high grade iron identified at surface • Drill Test Famnvatnet Project to establish source of VTEM anomalies 37
Acknowledgements Scandinavian Resources Ltd acknowledges the excellent assistance provided to it by the staff at:
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Swedish Brands â&#x20AC;&#x201C; Entrepreneurial, Global & Successful
Global
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Contact Details Mr Damian Hicks Scandinavian Resources Chairman Ground Floor 28 Ord Street West Perth Western Australia 6005 Telephone: Facsimile: Mobile: Email: Website:
+61 8 9324 1153 +61 8 9324 3366 +61 419930087 damianh@scandinavianresources.com www.scandinavianresources.com
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