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30 Ma 2012
Proposed acquisition of gold and copper-gold
assets in Philippines
30 May 2012
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Transaction highlights
Proposed acquisition of significant gold and copper-gold assets in the Philippines containing an Indicated Resource of 10,150,000 tonnes @ 1.2g/t for 393,000 contained ounces of gold and an Inferred Resource of 3,800,000 tonnes @ 0.88g/t for 108,000 contained ounces of gold, with significant further exploration potential
High grade intercepts below resources include 61m @ 5.1g/t gold, 64m@ 3.5 g/t gold, and 26m @ 4.03g/t gold
Assets situated within one of most endowed regional provinces for major gold and copper gold porphyry discoveries
Established social and environmental “license to operate”.
Red Mountain Mining acquiring a proven and experienced exploration team in the Philippines
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Transaction highlights (cont’d)
Strengthening of Red Mountain Mining’s management team by securing senior executive and Board members from Mindoro
Transaction strongly in line with Red Mountain Mining’s strategy and provides a unique opportunity to apply modern Australian mining techniques to acquired projects
Acquisition to be fully funded by issue of Red Mountain Mining shares
Unanimously recommended by both Red Mountain Mining and Mindoro Boards
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Transaction overview
• Acquisition of Mindoro Resources’ Philippine based gold and copper-gold tenements and projects in exchange for Red Mountain Mining shares
• Following interests are to be acquired by Red Mountain Mining:
– 100% interest in Batangas Project with JORC Indicated Resources of 393,000 ounces and Inferred Resources of 108,000 ounces (total 500,000 ounces), including Archangel – Kay Tanda resource and Lobo - South West Breccia resource and other gold and copper-gold projects within the extensive exploration tenements located on Luzon Island
– 75% interest in copper-gold exploration tenements at Tapian San Francisco located near Surigao on Mindanao Island.
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Transaction structure
• Mindoro assets to be acquired:
– 100% of MRL Gold (Australia) Pty Ltd – 100% owner of Mindoro's Philippines subsidiaries, the beneficial owner of the Assets
• Placement – consideration will be:
– *100,000,000 non-voting shares in Red Mountain Mining; and
– *50,000,000 performance shares in Red Mountain Mining that convert into Non-Voting Shares upon increasing the indicated resource to 600,000 ounces and delivering an “economically viable” scoping study
– Non-voting shares convert to voting shares once distributed to Mindoro shareholders
• Commercial loan:
– Upon execution of sale agreement, Red Mountain Mining will enter into a secured loan agreement up to A$1 million on usual commercial terms to Mindoro to commence focussed drilling of Archangel higher grade gold resource targets
* Shares issued based on a no-consolidation basis 5
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Conditions precedent
• Completion of satisfactory due diligence by both parties
• Board and required shareholder approval of both Red Mountain Mining and Mindoro
• Completion of restructuring of Mindoro subsidiary MRL Gold Phils Inc whereby assets and beneficial rights to assets are transferred to another Mindoro subsidiary
• Toronto Stock Exchange approval of sale of Mindoro assets for shares
• Red Mountain Mining to retain working capital of no less than A$4.2m (less amount of loan drawn down) at time of completion of transaction (provided completion occurs on or prior to 31 August 2012)
• Entity which house projects, being MRL Gold (Australia) Pty Ltd (on a consolidated basis inclusive of their Philippines subsidiaries) having net working capital of no less than US$0 at time of completion of transaction
• If required by ASX, Red Mountain Mining preparing a full form prospectus, lodging prospectus with ASIC and raising minimum amount under that prospectus
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Corporate structure post acquisition
RMX MDO
MRL Gold (Australia) 100%
Philippines Subsidiary 100%
Tapian SF (75%) Batangas Gold Projects (100%)
75%
100%
100%
75% 100%
Current RMX shareholders
35-44% 56-65% Current MDO shareholders
75% Options for
100%
MDO Nickel Assets
100%
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Pan de Azucar (75%)
Minimax, Philippines
Partner
25%
25% 25%
MRL Phils. Inc. 100%
100%
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Red Mountain Mining Board
Pre acquisition Post acquisition
Neil Warburton (Exec Chairman and Acting CEO)
Neil Warburton (Exec-Chairman) and then Non-Exec Chairman within 9 mths of completing sale
Keith Rowe (Executive Director)
Jon Dugdale Exec Director and then CEO within 9 mths of completing sale
Michael Wolley (Non-Executive Director)
Howard Walker (Non-Executive Director)
Keith Rowe (Non-Executive Director)
Michael Wolley (Non-Executive Director)
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Batangas Gold Projects (100% beneficial interest) • Archangel (Gold) • Lobo (Gold) • El Paso, Calo, Talahib (Cu-Au)
MAP KEY
Gold and Cu-Au project Major Deposit Recent major discovery Major Gold project
Tapian San Francisco Project (75% beneficial interest)
• TSF and Canaga (Cu-Au)
Sianna Gold 85,000oz pa (Red 5)
Masbate Gold 200,000oz pa (CGA Mining)
Co-O Gold 100,000oz pa (Medusa Mining)
Tampakan, Cu-Au, BFS (Xtrata/Indophil)
Didipio Cu-Au (Oceana)
Portfolio of projects in key mining districts
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Sea
LOBO
LOBO PROJECT - SW BRECCIA, High grade epithermal gold veins; 5km to test
NI 43-101/JORC Resource Estimate Indicated: 270,000 t @ 6.49 g/t (56,380 oz)
Inferred: 61,000 t @ 5.35 g/t (10,540 oz)
Tenements / applications
Porphyry copper-gold prospects
Resource area
Epithermal vein trends
Copper showing
Historical mine / workings
Other prospects
MAP KEY
4km 0 N
Manila
Luzon
Mindanao
ARCHANGEL PROJECT - KAY TANDA, NI 43-101/JORC Resource Estimate
Indicated: 9,879,000 t @ 1.1 g/t (337,500 oz) Inferred: 3,741,000 t @ 0.8 g/t (97,200 oz)
High-grade Intercepts at depth: eg 61m @ 5.1 g/t Au
Talahib
Calo
El Paso
Marita
BATANGAS GOLD PROJECT & COPPER-GOLD TARGETS, 100%
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Sea
Biga
Marita
Bootin
N 1 Km 0
Archangel MPSA boundary
Younger cover rocks
Extensively altered volcanics intruded by diorite and dacite
Advanced argillic zones
Resource area
Epithermal gold-silver zones
Porphyry-related stockworks
Vein breccia
Boulder field of mineralized massive silicified rocks
Old mine working
Copper showing
Porphyry related IP anomalies
BATANGAS, ARCHANGEL PROJECT
MAP KEY
Kay Tanda NI 43-101/JORC Resource Estimate Indicated: 9,879,000 t @ 1.1 g/t (337,500 oz) Inferred: 3,741,000 t @ 0.8 g/t (97,200 oz)
High-grade Intercepts at depth: eg
61m @ 5.1 g/t Au, 64m @ 3.5 g/t Au, 26m @ 4.03 g/t Au
XS 9350N
• 6km gold zone with porphyry at depth • Drilling high-grade “feeders” to build resource • Resources low-strip and excellent metallurgy EL PASO PROJECT
TALAHIB PROJECT
BATANGAS PROJECTS
Crazy Horse Taysan Project
KAY TANDA GOLD RESOURCE
ARCHANGEL PROJECT
LOBO GOLD PROJECT
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BATANGAS, KAY TANDA PROJECT
Drill hole KT-07
Mineralized intercept (high grade)
Interpreted mineralization boundaries
End of hole 75m
Mineralized intercept
60m
PLDH-01 PL-30
105.2m
82m
28m @ 1.47 g/t Au
PL-22
9600
E
9800
E
9700
E
9500
E
9400
E
PL-16
PL-17
50m
51m 70m 70m
60m 75m
PL-23 PL-31 PL-24
PL-37
20m @ 1.09 g/t Au
26m @ 4.03 g/t Au, 179.16 g/t Ag
2m @ 12.24 g/t Au
60m @ 1.46 g/t Au, 25.10 g/t Ag
10m @ 6.84 g/t Au
KAY TANDA CROSS SECTION 9350N: Shallow Resource and “Feeder” Target
Batangas Projects
MAP KEY
50m
Quartz - gold breccia veining
58m @ 1.53 g/t Au
Porphyry Target at Depth
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BATANGAS, LOBO GOLD PROJECT
?
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?
?
?
?
Balisong
Nagtoctoc
Camo
Pica
Old Lobo Copper Mine
?
N 500m 0
Alluvium Limestone Mineralized and altered volcanics Mineralization shoot Epithermal vein breccia trend Silica cap Old Mine High-Grade shoot target
EL PASO PROJECT
TALAHIB PROJECT
BATANGAS PROJECTS
Crazy Horse Taysan Project
KAY TANDA GOLD RESOURCE
ARCHANGEL PROJECT
MAP KEY
SW Breccia Mineral Resource: High Grade Shoot • Indicated - 270,000 t @ 6.49 g/t Au; 56,380 oz Au • Inferred - 61,000 t @ 5.35 g/t Au; 10,540 oz Au • open to SW and depth
Lobo shoot? 12m @ 7.42 g/t Au
Camo, at surface, • 4.5m @ 488 g/t Ag, 1.8% Cu • 3.5m @ 114 g/t Ag, 0.36% Cu
Southwest Breccia Recent results eg LB-62: • 8.0m @ 8.8 g/t Au and • 7.45m @ 12.4 g/t Au
Line 10170N
Line 10155N
• High-grade gold shoots targeted • 5km mapped epithermal lode structures • Drilling planned to build resource LOBO GOLD
PROJECT
Pica: Epithermal veins: • 13.65m @ 2.49 g/t Au in • 213m @ 0.18% Cu, 0.30 g/t Au
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Trench
Outcrop
Drill hole number
Gold grade g/t x true vein width in meter > 50
20 – 49
10 – 19
TR OC LB-20 79.5
10,1
55N
10,1
72N
10,1
85N
10,2
00N
10,2
15N
10,1
25N
10,1
00N
10,1
40N
20m
TR-1 358.2
OC channel 159.2
100
50
170m ASL
150
B B’
TR-2 210.1
LB59-11 13.8 LB58-11
59.4
LB60-11 19.3
LB61-11 Drill hole (2011)
BATANGAS, LOBO PROJECT SOUTHWEST BRECCIA LONGITUDINAL PROJECTION, G/T x Thickness Contour
Batangas Projects
MAP KEY
?
?
LB61-11 67.5
LB62-11 92.23
LB63-11 27.89
LB65-11 36.2
LB64-11 54.59
Open at Depth
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10,000E
LB63-11,
Batangas Projects
MAP KEY
SOUTHWEST BRECCIA CROSS SECTION 10155N
20m
Drill hole Mineralized intercept
LB-25
End of hole 75m
160 ASL
140
120
100
80
60
40
Quaternary colluvium Quaternary agglomerate Quartz - barite - pyrite vein breccia Quartz - pyrite ± clay alteration Clay - pyrite - quartz ± chlorite ± magnetite alteration Quartz - clay - pyrite alteration Propylitized andesite wallrock (chlorite - clay - pyrite ± quartz ± calcite ± magnetite) Fault gouge
9,950E
LB60-11,
LB58-11,
LB64-11,
25.20m
20.75m
40.50m
43.9m
109.10m
138m
56.2m @ 4.24 g/t Au Inc. 7.71m @ 28.4 g/t Au
4.90m @ 11.1 g/t Au inc. 2.0m @ 21.1 g/t Au
18.35m @ 1.52 g/t Au inc. 1.0m @ 5.72 g/t Au Inc. 1.0m @ 5.25 g/t Au
9.0m @ 2.14 g/t Au inc. 2.0m @ 6.06 g/t Au
9.05m @ 6.56 g/t Au inc. 5.0m @ 11.27 g/t Au
16.13m @ 7.75 g/t Au
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BATANGAS, LOBO PROJECT F
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10,000E
85.00m
104.50m
129.10m
57.30m
Trench: 11m @ 19.1 g/t Au
52.25m 69.40m
LB61-11
Batangas Projects
MAP KEY
SOUTHWEST BRECCIA CROSS SECTION 10172N
20m
Drill hole Mineralized intercept
LB-07
End of hole 75m
17.4m @ 9.60 g/t Au
8.3m @ 6.30 g/t Au
32.2m @ 9.50 g/t Au
14.0m @ 1.67 g/t Au
13.3m @8.30 g/t Au
180m ASL
160
140
120
100
80
60
40
LB62-11
6.7m @ 10.7 g/t Au inc. 3.7m @ 18.0 g/t Au
LB65-11
Quaternary agglomerate Quartz - barite - pyrite vein breccia Quartz - pyrite ± clay alteration Clay - pyrite - quartz ± chlorite ± magnetite alteration Quartz - clay - pyrite alteration Propylitized andesite wallrock (chlorite - clay - pyrite ± quartz ± calcite ± magnetite) Fault gouge
11.90m
7.45m @ 12.4 g/t Au inc. 5.30m @ 15.6 g/t Au
9,950E
30.25m
57.60m
7.75m @ 4.67 g/t Au inc. 1.95m @ 11.8 g/t Au
8.0m @ 8.82 g/t Au inc. 3.0m @ 15.4 g/t Au
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BATANGAS, LOBO PROJECT F
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PHILIPPINE FAULT ZONE
Mindanao Sea
Lake Mainit
SURIGAO CITY
Tenements
TSF alteration (hi-temp propylitic, argillic, phyllic, potassic) Major porphyry copper-gold discovery Porphyry copper-gold prospects Copper-gold / gold mine or significant prospect Other copper-gold or gold prospect Fault
MAP KEY
10 km 0 N
Manila
Luzon
Mindanao
PAN DE AZUCAR
BATANGAS
SURIGAO PROJECTS
SILANGAN (Boyongan-Bayugo) Philex Mining, in feasibility Resource contains 5b lbs Cu, 9moz Au
TAPIAN SAN FRANCISCO (TSF) PROJECT Extensive Porphyry-related alteration, copper-gold showings, IP geophysics
Epithermal gold and porphyry copper-gold mines of MMC
SIANA PROJECT – Red 5 (ASX)
In production for 85k oz pa
Masapelid
PORPHYRY COPPER-GOLD: TAPIAN-SAN FRANCISCO
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Key value-driving milestones for 2012/13
Milestone Objective Timing
Archangel gold resource drilling Drill test “feeder” structures and upgrade and define resources
Q3/4 2012
Batangas gold resource upgrade Significant gold resource increase Q1 2013
Drill Porphyry Copper-Gold Targets Breakthrough Cu-Au discovery Q2 2013
Batangas gold scoping study Viable gold project for Feasibility Q2 2013
Next Steps, subject to delivery of above: • Batangas Gold: Increase resource, commence FS and permitting • Porphyry Targets: Drill definition of key discovery
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Indicative transaction timetable
Timetable Date
Completion of due diligence by Mindoro and Red Mountain Mining 12 June
Execute Agreements (binding) 14 June
Mindoro AGM 28 June
Red Mountain Mining Meeting Documents dispatched 29 June
Red Mountain Mining Shareholder Meeting 31 July
Completion of Sale under Agreements (Satisfaction of Conditions Precedent and issue of Consideration Securities, etc) 8 August
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In summary...
• Company transforming transaction
– assets in mineral rich districts of Philippines
• Highly prospective gold exploration resource projects
– with further exploration potential
• Established mining and exploration licences in place
• Existing cash reserves to enhance acquired resources
• Strong board and highly skilled exploration team
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Contact details
Neil Warburton, Executive Chairman & Acting CEO E: [email protected] M: +61-408 935 014 Investor relations – Ronn Bechler E: [email protected] M: +61-400 009 774 Red Mountain Mining head office Suite 1, 2 Richardson Street West Perth WA 6005 P: +61-8 9226 5668 F: +61-8 9486 8616 E: [email protected] W: www.redmm.com.au
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Qualified Person statement
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Mindoro’s Resource Statements are NI 43-101 and JORC Compliant. Jon Dugdale, the CEO and a director of Mindoro Resources and a member of the AusIMM, is a Competent Person as defined by the JORC Code, has more than five years of experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken, and has reviewed and verified the Mineral Resource statements contained in this news release. Mindoro’s exploration programs are prepared and/or designed and carried out under the supervision of Tony Climie, P.Geo., who is a Qualified Person as defined by National Instrument 43-101 and is a Competent Person as defined by the JORC Code, and who has reviewed and verified the pertinent disclosure of exploration related technical information contained in this news release. Mr Climie is an executive and a director of Mindoro and is a member of the Alberta Professional Engineers, Geologists and Geophysicists Association. Mr Climie has more than five years of experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken. Mr Climie has consented to the release of the pertinent exploration related technical information in the form and context in which it appears.
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Disclaimer
The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. This presentation is not an offer of securities for sale in the United States, nor does this presentation constitute a prospectus or other offering document in the United States or any other jurisdiction in which it is being used. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption from registration there from. In providing this presentation, Red Mountain Mining has not considered the financial position or needs of the recipient. Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial and legal advisors. These statements are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Red Mountain Mining’s current expectations, estimates and projections about the industry in which Red Mountain Mining operates, and beliefs and assumptions regarding Red Mountain Mining’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Red Mountain Mining, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Red Mountain Mining caution shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Red Mountain Mining only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Red Mountain Mining will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.
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Suite 1, 2 Richardson Street. West Perth, Western Australia, 6005 T +61 (08) 9226 5668 F +61 (08) 9486 8616 www.redmm.com.au
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Slide Number 1Transaction highlightsTransaction highlights (cont’d)Transaction overviewTransaction structureConditions precedentCorporate structure post acquisitionRed Mountain Mining BoardPortfolio of projects in key mining districtsSlide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Key value-driving milestones for 2012/13Indicative transaction timetableIn summary...Contact detailsQualified Person statementDisclaimerSlide Number 24