Download A conservative approach to the high risk, high return world of early

A conservative approach to the high
risk, high return world of early stage
natural resource investing
TSX-V: VGN
Corporate Presentation
September 2015
Forward Looking Statements
This presentation may contain “forward-looking information”, including, but not limited to, statements regarding
anticipated earnings and earnings per share, anticipated cash flow and cash flow per share, anticipated costs
relating to exploration and development, and other expectations, beliefs, goals and plans of Greencastle Resources
Ltd. (the “Corporation”). Such forward-looking statements may include words such as “plans,” “intends,”
“anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests,” “potential”
“interpretation” and similar expressions. Such forward-looking statements reflect management’s beliefs at the time
such statements are made and are based on information then available to management.
Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual
results to differ materially from the results discussed in the forward-looking statements including, but not limited
to, changes in commodity prices, increases in exploration costs, operational exploration risks, the uncertainty of
reserve estimates and reserve life, fluctuations in foreign currency exchange rates, environmental risks, obtaining
government approvals, labour disputes and changes in general economic and political conditions. Although the
forward-looking statements are based upon what management believes to be reasonable assumptions and
projections, the Corporation cannot assure investors that actual results will be consistent with such forward-looking
statements.
Forward-looking statements are made as of the date of inclusion on this website, and the Corporation assumes no
obligation to update or revise them to reflect new events or circumstances. Please refer to the Corporation’s annual
report, management information circular, annual information form and other filings on SEDAR for further
information on risks and uncertainties that could cause actual results to differ materially from forward-looking
information and statements.
TSX-V: VGN
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Corporate Overview
• Greencastle is a diversified investment, financial advisory and
venture capital firm focused primarily on natural resources.
• Our business objective is to remain cash flow positive while
building value for our shareholders in this highly speculative
sector.
• Project evaluation, initial exploration and acquisition costs are
offset by revenue streams, including: royalties, gains on
marketable securities, joint venture option payments, advisory
fees and dividend income.
• This business model has ensured Greencastle’s financial stability
since 1996 and resulted in minimal dilution for shareholders.
TSX-V: VGN
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Capital Structure
Ticker
TSX-V: VGN
Shares O/S
46,182,671
Fully Diluted Shares
50,227,671
Market Capitalization
$2,770,000
52 Week Hi / Low
Management
$0.09 / $0.05
18%
• Greencastle currently trades at a
discount to book value
• No debt or liabilities
• Conducting a normal course issuer bid
to repurchase up to 3,981,805 shares
over a period of one year
TSX-V: VGN
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Management and Directors
• Anthony Roodenburg – Founder, CEO & Director
o Corporate development and investment industry executive since 1987
o Founder and Director of several public companies
• James Pirie – President & Director
o 40+ years in global mineral exploration as a geologist
o Previous experience includes Breakwater Resources, Granduc Mining, Homestake
and Esso Minerals
• Chris Irwin – Director
o Securities lawyer and Principal at Irwin Lowy LLP
o Recent Past Director of Trelawney Mining and Exploration which was acquired by
IAMGOLD
• Michael Power – Director
o 50+ years of experience in the mining industry, including 22 years with Noranda
and Hemlo
o Currently a Director of San Gold Corp. and SGX Resources Inc.
TSX-V: VGN
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Investment Highlights
• Three Active Gold Exploration Projects in Nevada:
o Battle Mountain Trend – Pipeline/Cortez Hills, Nevada:
o Indian Creek – close to Cortez camp, available for joint venture partner
o Jewel Ridge – optioned to Rainbow Resources Ltd (TSX-V: RBW)
o Lander Country, Nevada (55 km southwest
o Assigned to Deveron Resources Ltd (TSX-V: DVR)
• Cash Flow:
o Oil and gas discoveries in Saskatchewan converted to royalty
o Discovery costs: $1,000,000
o Royalties to date: over $10,000,000
• Business Development:
o Unlock value in gold exploration portfolio through option agreements and
joint ventures
o Gold exploration projects expensed (not capitalized) so value not reflected
on balance sheet despite significant potential
o Exposure to resource project development with minimal risk of ownership
dilution
TSX-V: VGN
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Property Location - Nevada
Battle Mountain Trend
•
Nevada
•
•
•
•
Indian Creek
Cortez Area
Jewel Ridge
•
•
•
Pro-mining jurisdiction
Largest producer of gold in the
United States
Mining infrastructure currently
exists to support future
development
96 unpatented claims & 11
patented claims, covering 1,510
acres
5 km south of Eureka and 150 km
SSW of Elko, a commercial air
centre
Jewel Ridge
Indian Creek
•
•
20 contiguous unpatented
claims, covering 390 acres
10 km north of Cortez gold camp
and 275 km ENE of Reno
TSX-V: VGN
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Battle Mountain Trend
Indian Creek
• 10 km north of Barrick Gold’s Pipeline and
Cortez Hills operation
•
Indian Creek
•
•
Some of the world’s largest and lowest
cost gold mines
2013 production: 1.34 M oz Au at cash
costs of $433/oz
11 M oz Au proven and probable reserves
Jewel Ridge
• 10 km from Barrick’s Ruby Hill Mine
•
Jewel Ridge
2013 production: 91 K oz Au at cash costs
of $887/oz
• Greencastle has completed 39 drill holes
including 39.6 m of 2.1 g/t Au (2004)
• Rainbow Resources completed follow-up
drilling in 2012:
•
9.1 m of 0.66 g/t Au and 213 g/t Ag
including 3 m of 1.1 g/t Au and 601 g/t Ag
TSX-V: VGN
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Oil and Gas Royalties
Primate Oil Wells
o
o
o
o
o
o
Greencastle oil discovery at Primate (2003/4)
Currently multiple wells operated by Edge Resources Inc. (TSX-V: EDE)
Gas discovery on Primate North by Sphere (royalty to Greencastle)
Greencastle holds sliding scale royalty interest
Royalty income commenced in Q2 2005
Royalty income exceeds $10,000,000 to date
Spirit River
o 50% joint venture with Softrock Minerals (TSX-V: SFT)
o Farmed out to Direct Energy with upfront payment of $200,000 and a 2.5%
overriding royalty on future production
o Horizontal well drilled in early 2014 awaits completion
TSX-V: VGN
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Greencastle Investments
• Deveron (TSX-V: DVR) is a diversified mineral exploration company
• Greencastle is the largest shareholder owning 65%
• Diversified Resource Acquisitions:
o
Rockstone Zinc & Graphite Property – Ontario, Canada
•
•
o
Nechako Gold Property – B.C., Canada
•
•
o
Highly prospective exploration target including 25% graphite over 24 metres
Higher grade zinc samples and intersections have been discovered within 5 km
On trend with New Gold’s Blackwater property
Area has had $600M in acquisitions
Boreal Agrominerals – Ontario, Canada
• 14% owner of Spanish River Carbonatite producer
• Environmentally friendly and certified organic fertilizer
TSX-V: VGN
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Investment Summary
• Trading below cash value per share ($0.11), January 1, 2015
• No value given by the market for oil royalty, the net present
value of which was $636,000 at 10% discount rate (Dec. 31,
2012)
• No value given by market for gold exploration portfolio despite
low cost exposure to significant new discovery areas in Nevada,
Ontario and British Columbia
• Corporate development plans to unlock value in gold
exploration assets by JV or option will reduce risk and generate
additional cash flow
TSX-V: VGN
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330 Bay Street, Suite 1208
Toronto, ON
M5H 2S8
Tel: 416-367-4571
Fax: 416-367-5269
[email protected]
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