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Strong financial position with ~C$66 million in cash and no cash debt ~C$66 M
Strengthened balance sheet improves Aurizona project finance flexibility CASH (~US$50 M) 2
Strategic shareholder base and enhanced share liquidity
Broad and supportive shareholder base
Greg Smith, President and Executive Director Christian Milau, CEO and Director
JDL Gold, Esperanza Resources, Minefinders, Goldcorp, KPMG Luna Gold, True Gold, Endeavour Mining, New Gold
3
Transaction Overview
All Share 23% Premium
1.105 JDL Share per Luna Gold Share C$2.20 per Luna Gold Share to Spot
Consideration
(16% to 20-day VWAP)
Pacific Road
Concurrent C$27 million (~$20 million) Private Placement at C$2.00 per unit
Backstopped
Financing (unit: 1 share + 1 listed warrant at C$3.00 1)
Financing
Lock-ups:
Supportive All Management, Directors and Strategic Shareholders
68% Luna Gold
Shareholder Base (Pacific Road, Sandstorm, Zebra & Lorito (Lundin), KCR/KCO, Ross Beaty, David Lowell)
30% JDL
Shares - Basic M 148.9 Cash - Basic C$ M 66.0
Warrants (W. Avg. Ex. C$2.38) M 87.0 Cash - FD C$ M 282.0 ~C$300 M
Pro-Forma Capital Options/RSUs M 6.0 Cash Debt C$ M - Market Cap 5
Structure 2,3,4
Shares - FD M 241.9 Conv. Debt C$ M 43.0
~C$66 M in Cash
Market Cap. C$ M 300.0
1. Financing warrants will have the same terms as JDL Gold currently listed warrants which trade on the TSX Venture Exchange under the ticker symbol JDL.WT and expire on October 6, 2021. 2. Includes securities issued as part of C$27 M (~$20 M) Concurrent
Financing. Concurrent Financing cash net against existing non-convertible debt. 3. Includes an adjustment for estimated transaction costs of $2 million. Includes marketable securities where applicable. 4. Cash FD includes warrants as part of units in
4
Sandstorm Debt Facility settlement. 5. Based on the assumption of ~149 M common shares outstanding and JDL's trading price of C$1.99 on January 31, 2017
Growth Platform with Pipeline of Projects
Cash
SSL C$12 M
Convertible
C$43 M
SSL
Convertible
Cash Debt
C$43 M
C$61 M
Cash
C$66 M
Cash
C$56 M
~C$66 M CASH 2 ~C$95 M CASH 2
Basic Fully Diluted In-the-Money
(~$50 M) (~$72 M)
6
1. Number includes marketable securities. 2. Trek balance sheet numbers include marketable securities and C$27 M (~$20 M) Concurrent Financing.
Supportive Shareholder Base
Pre Transaction Ownership (Luna + JDL) 1 Post
Pre Transaction
Transaction Ownership
Balance Sheet(Trek
(LunaMining)
+ JDL) 1
Float
26%
Management
9%
Management
Float
8%
42%
Pacific Road
Institutional &
49%
HNWI
Sandstorm 14%
17%
Low capital
3,000 intensity
Capital intensity ($Capex / oz Annual Production)
Midas
Eldorado
2,500
Orezone
LOWER CAPITAL INTENSITY
500
43% margin at
0
5 10 15 20 25 30 35 40 45 50
$1,250 Au/oz 1
After Tax IRR (%)
HIGHER IRR
8
1. As per the "Pre-feasibility Study on Aurizona Mine Project, Maranho, Brazil, NI 43-101 Technical Report" with an effective date of Sept 12, 2016. 2. 2016 Wood Mackenzie AISC data provided by BMO Capital Markets.
Scarcity of Single-asset Near-term Producers
Est. Time to Production
3+ Years 2 Years 1 Year Producers
400 378 16
370
350 14
300 12
253
Annual Production (koz)
250 10
Grade (g/t)
205
200
200 8
160
150
150 6
116
100
100 4
50 2
0 0
Annual Production
Grade
9
Near-term Production, Exploration Upside
Production targeted for year-end 2018
Past producing mine in northern Brazil with the Aurizona processing
majority of infrastructure still in place plant, January 2017
Exploration potential
Over 100,000 metres of drilling to date
Significant potential to extend initial 6.5-year mine life
with near-mine exploration success
JV with AngloGold Ashanti to explore 2,000 km2
greenfields property
1.Based on the "Pre-feasibility Study on Aurizona Mine Project, Maranho, Brazil, NI 43-101 Technical Report" prepared by
Lycopodium Minerals Canada Ltd. with an effective date of September 12, 2016, a copy of which is available on Luna Gold's
website and on SEDAR at www.sedar.com. 10
Past-producing Mine with Existing Infrastructure
Open-pit mine, produced from 2010-2015
North Waste
Storage Facility
Most major mine elements in place
Ven Tailings Permitting in place, being updated for
Storage Facility
8,000 tpd processing plant
Piaba Pit Improved water management plan
Combined contract and owner mining
Excellent infrastructure:
- Plant replacing front end
Primary crusher/related facilities
ROM Pad Surge bin with temporary stockpile
SAG mill, ball mill, pebble crusher
- Mining fleet to be replaced
Plant Site
- Grid power to site upgrade substation
- Road accessible
- Experienced local workforce
- Offices and camp
- Water
- Communications
Aurizona Mine, January 2017
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Exceptional Exploration Upside
~2,500 km2 Land Package
Near-mine exploration
Luna Gold planning 2017 exploration program
to test near-mine drill ready targets on strike
with existing reserves
Open to depth
High-grade "root" to the mineralized system
tested up to 500m below surface; current PFS
mine plan contemplates mining to only 220 m
Strategic Location
Excellent location and infrastructure, located less
than 10 minutes from Pan American Hwy
Strong government and community support
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Project Pipeline
Warintza Project
Copper-Molybdenum deposit in southeast Ecuador
22,676 hectares, ~6,500 metres of drilling to date
40km north of Mirador Cu-Au development project and near contiguous to San Carlos Panantza
exploration-stage deposit
2013 resource estimate: Inf 1.808 Blbs Cu @ 0.42% and 132.3 Mlbs Mo @ 0.031% (0.61% CuEq) 1
Rhylin Bailie
VP Investor Relations
Tel: 604-260-0516
Email: ir@lunagold.com
www.lunagold.com
17
Appendix
Transaction Overview
Form of Transaction Plan of Arrangement whereby JDL acquires all of the outstanding securities of Luna Gold
Consideration Share Exchange Ratio of 1.105 JDL shares for each Luna Gold share held
Implied premium of 16% on 20-day VWAP and 23% as of Jan 31, 2017
Each Luna Gold warrant, option and restricted share unit to be converted at the Exchange Ratio
No Shop Non-solicitation of other acquisition proposals. Exclusion for responding to a bona fide unsolicited acquisition
proposal that is or could reasonably lead to a Superior Proposal
Termination Fee C$6.5M (~4% of transaction value basic equity + SSL convertible debenture)
Voting Support Agreements All Officers, Directors and certain other shareholders
Board Recommendation Unanimous
Conditions Precedent Standard
Luna Debt Pacific Road's debt repaid in cash following closing
Sandstorm Debt Facility converted into equity
Concurrent Equity Financing C$27M (~US$20M) (effectively offsetting Pacific Road's debt repayment) of subscription receipts ("SR") @ C$2.00 per
SR (each SR ultimately converts into 1 JDL share and 1 JDL warrant)
Concurrent Financing fully backstopped by Pacific Road
Size may be increased, depending on demand
Approvals Luna Gold shareholder approval of the Transaction: 66 2/3% of votes cast by securityholders, 66 2/3% of votes cast by
shareholders, 66 2/3% of votes cast by restricted share unit holders, and a majority of votes cast by shareholders
Luna Gold shareholder approval of the debt exchange and debt settlement: majority of the minority of votes cast
JDL shareholder approval: majority vote
Customary regulatory and court approvals
Indicative Timeline Joint Information Circular sent to shareholders in February 2017
Special Shareholder meetings to take place in March 2017, with Completion expected by end of March 2017 19
Trek Mining Capital Structure
P&P Reserve 969 koz/ 18.6 Mt @ 1.62 g/t MARGIN AT Refining &
Transport $13
$1,250/OZ AU
Mine Life 6.5 years Mining
47%
G&A $60 $301
Annual Production Avg. 150,000 oz (Years 1-5)
Strip Ratio / Recovery 6.2:1 / 91% MARGIN AT Processing
$1,350/OZ AU $232
Construction Period 18 months *Mining - $2/t mined
Initial Capex $146M (includes new mine fleet) Aurizona in the lower third of the industry AISC average
1. Based on the "Pre-feasibility Study on Aurizona Mine Project, Maranho, Brazil, NI 43-101 Technical Report" prepared by Lycopodium Minerals Canada Ltd. with an effective date of September 12, 2016, a copy of which is available on Luna Gold's website and 21
on SEDAR at www.sedar.com. 2. Mineral resources are inclusive of mineral reserves.
Leading the Developers: Operating & Financial Metrics 1
Open-pit Developers: Reserve Grade Capex ($M)
$500
1.80
1.60
Reserve Grade (g/t gold)
$400
1.40
150,000 25%
20%
100,000 15%
10%
50,000
5%
- 0%
1. Data sourced from company websites, presentations and technical reports. * PFS IRR of 34% increases to 40% when care and maintenance costs are excluded and a 22
mining fleet lease is included.
W. Africa / S. America: World-class Deposits
South American deposits analogous
to the prolific gold belts of
West Africa
23
Aurizona: Good Site Access, Mining-friendly Brazil
24
Aurizona: New Front End of the Processing Plant
Mine will deliver all ore types to the mill: saprolite
(14%), hard saprolite + transition (29%), fresh rock (57%)
Increase processing capacity to 8,000 tpd for all rock
types
Dedicated 69 kV powerline to site, upgrading substation
to handle 15 MW
Installation of primary crusher
Significantly increased grinding power from 1.4MW to
9.1MW SAG and ball mills to be installed
Use large run-of-mine pad to improve early grade feed
Improved gold recovery system increased capacity
with three additional leach tanks
Better carbon recovery and treatment process
intensive leach reactor, pressure elution vessel, carbon
regeneration kiln, improved electrical system and
automation
91% recovery
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Aurizona: Underground Potential
SW Viewing Az 340 NE
OPEN OPEN
OPEN ~160m
OPEN
~175m
OPEN
~1,500m
~140m
Material Cutoff Tonnes Au g/t Au Oz 2 g/t shell outside Reserve Pit and within
Au g/t US$1400 Resource Pit
Measured1 2.0 477,000 5.02 77,000 2 g/t shell outside US$1400 Resource Pit
Below Reserve Pit and
within US$1400 Indicated1 2.0 1,516,000 5.01 244,900
Resource Pit 1 Included in US$1400 open pit Mineral Resources.
Inferred1 2.0 14,000 3.58 1,600 2 Included in Inferred Mineral Resources outside US$1400 open pit. Underground
resources were evaluated using a 2 g/t Au shell and edited to account for reasonable
Below US$1400 Inferred2 2.0 3,721,000 3.47 415,300
mineable geometries. Tonnages rounded to the nearest 1,000 and ounces rounded to
nearest 100. Differences may be present due to rounding.
Resource Pit 26
Aurizona: AngloGold Joint Venture
AngloGold Ashanti to spend $14M over
4 years to earn 70% interest on
greenfields properties (~2,000 km2) 1,2,3
commenced August 2016, on track to
exceed $2M commitment in year one
AngloGold planning greenfields drill
program, and undertaking airborne
geophysical surveys over the entire land
package Trek will get all data
Should AngloGold earn and decide to
sell its interest in the JV, Trek can
purchase AngloGold's interest in any NI
43-101 compliant resources for $10/oz
- If AngloGold's exploration is successful,
Trek could hold 30% of a major deposit
or 100% of an interesting discovery
1. Aurizona Mine area including Piaba West and Tatajuba, and brownfields project areas
such as Touro, are excluded from the AngloGold JV (~450 km2).
2. Greenfields properties also subject to a 2% NSR royalty to Sandstorm, subject to
Trek's right to reduce the NSR to 1% for US$10M prior to commercial production. Mine
permit and brownfields properties are subject to a gold price dependent sliding scale 3-
5% NSR royalty to Sandstorm.
3. Once AngloGold earns in, Trek would fund future activities on a pro-rata basis. 27
27
Aurizona: Feasibility Study & Drilling Underway
Lycopodium Canada engaged to lead Feasibility Study
completion around end of Q1-2017
- Condemnation and geotechnical drilling
- Enhancing geo-metallurgical model
- Resource model update to include recent drilling and
geologic modelling
- Mine design and production schedule update
- Review and update of existing plant repair and
refurbishment program
- Capital and operating cost inputs update
Feasibility Study drilling and geology
- Two RC drills completed 8,610 m program results
pending
2,420 m Boa Esperana Infill
2,920 m Piaba Infill
3,270 m Condemnation
- Detailed logging and database update complete
- Geologic modelling nearing completion
- Additional ICP analyses underway
1,370 samples from Boa Esperana
3,502 samples from Piaba
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Aurizona: Reserve & Resource Estimates
Proven Probable Total
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
Ore Type (kt) (g/t) (oz) (kt) (g/t) (oz) (kt) (g/t) (oz)
Laterite/Saprolite 721 1.59 37,000 1,852 1.04 62,000 2,573 1.19 99,000
Hard Saprolite/Transition 2,320 1.60 119,000 3,049 1.22 119,000 5,369 1.38 238,000
Fresh Rock 3,328 1.98 212,000 7,372 1.77 420,000 10,700 1.84 632,000
Total 6,369 1.80 368,000 12,273 1.52 601,000 18,642 1.62 969,000
Tonnes Gold Grade Gold The Mineral Reserve estimate has an effective date of June 21, 2016 and is based on
Area Type Class (kt) (g/t) (oz) the Mineral Resource estimate effective on April 30, 2016. The Mineral Reserve
calculation was completed under the supervision of Gordon Zurowski, P.Eng of AGP
Mining Consultants Inc., who is a Qualified Person as defined under NI 43-101.
Measured 8,910 1.77 508,000 Mineral Reserves are stated within the final design pit based on a $1,104 per ounce
gold price pit shell with a $1,200 per ounce gold price for revenue. The cutoff grade
Indicated 20,264 1.64 1,071,700 was 0.38 g/t Au for all pit areas. The mining cost averaged $2.32 per tonne mined,
Pit Constrained
processing averages $11.30 per tonne milled and G&A was $2.84 per tonne milled.
Piaba M&I 29,174 1.68 1,579,700 The process recovery averaged 90.5%. The exchange rate assumption applied was
R$3.50 equal to $1.00. The PFS scope only considers the Piaba and Boa Esperana
Inferred 2,584 0.72 60,000 open pit mineralized zones. The Mineral Resource and Mineral Reserve estimates
contained herein may be subject to legal, political, environmental or other risks that
Outside Pit Inferred 3,721 3.47 415,300 could materially affect the potential development of such Mineral Resources. See
the Company's press release dated September 12, 2016 and the Company's latest
Boa Esperana Pit Constrained Indicated 682 0.90 19,700 technical report relating to the Aurizona Gold Project for additional information with
respect to the key assumptions, parameters and risks relating to the mineral
Inferred 66 0.75 1,600 resource and reserves estimates and other technical and scientific information
presented herein. The Mineral Resource estimate has an effective date of April 30,
Measured 8,910 1.77 508,000 2016 and was prepared by Mr. Brett R. Marsh, C.P.G. of Phoenix Geoscience, LLC,
who is a qualified person under NI 43-101. Mineral Resources are inclusive of
Mineral Reserves. Mineral Resources that are not included within the Mineral
Indicated 20,946 1.41 1,091,400 Reserves do not have demonstrated economic viability. Mineral Resources are
Pit Constrained
stated at the following cutoff grades for open pit: Piaba: Laterite and Saprolite at
Total M&I 29,856 1.67 1,599,400 0.30 g/t Au; Hard Saprolite/Transition/Fresh Rock at 0.40 g/t Au. Piaba: Outside open
pit at 2.0 g/t Au. Boa Esperana cutoff grade: 0.44 g/t Au. Piaba topography is
Inferred 2,650 0.72 61,600 current as of February 28, 2015. Tonnes are rounded to the nearest 1,000; ounces
are rounded to the nearest 100. Small tonnage and grade differences may be found
Outside Pit Inferred 3,721 3.47 415,300 due to rounding.
29
JDL: Resource Estimates
Warintza March 2013 Resource Estimate 1
1. The Mineral Resource estimate has an effective date of December 21, 2012 as reported in the "Technical Report, Warintza Project, Ecuador" completed by Peter Ronning, P.Eng. and
Steven Ristorcelli, C.P.G. with an effective date of December 21, 2012 and a completion date of March 27, 2013. The Mineral Resource calculation was completed under the supervision
of Peter Ronning, P.Eng. and Steven Ristorcelli , C.P.G., who are Qualified Persons as defined under NI 43-101. The reported resource is at a cut-off of 0.3 CuEq. Copper equivalent
calculations were made for reporting purposes. The copper equivalent grade for copper plus molybdenum was calculated as CuEq(%) = Cu(%) = (6*Mo(ppm)/10000). Copper-equivalent
calculations reflect gross metal content and have not been adjusted for metallurgical recoveries or relative processing and smelting costs. The copper equivalent grades were used only
for establishing cut-off grades for reporting.
2. The Mineral Resource estimate has an effective date of August 22, 2016 as reported in the "Technical Report on Resources of the Elk Gold Project" completed by Robert Wilson, P.Geo.,
Gary Giroux, P.Eng. and Antonio Loschiavo, P.Eng. with an effective date of August 22, 2016. The Mineral Resource calculation was completed under the supervision of Gary Giroux,
P.Eng., who is a Qualified Person as defined under NI 43-101. The potential open pit resources were evaluated using the Maptek Vulcan v9.1.1 Lerchs-Grossman algorithm software. The
constrained resource was calculated using a gold price of US$1232/oz. Any blocks within the constrained shell were reported using a 1.0 g/t cut-off and any blocks below the LG shell
surface were reported using a 5.0 g/t cut-off. The grade reported is the average grade of the resource both in and below the pit.
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Contact Info
604-558-0560 604-628-1164
ir@lunagold.com info@jdlgold.com
www.lunagold.com www.jdlgold.com
TSX: LGC TSX-V: JDL