Virgo Resources Seed Capital Raising – bids close Wednesday 26th

Seed capital raising of up to $600,000 at an issue price of 10 cents per share with a free attaching option on a 1-for-2.5 basis with an exercise price of 25 cents and a term of 3 years

Implied market cap Pre-IPO is $2.34m at 10c issue price for an EV of less than $1.7m.

Plan to list on ASX/RTO at the equivalent of 20c still only giving a fully diluted EV of just $5.7m post IPO on a $4.5m raise.

Key summary points to re-rate valuation prior to ASX IPO :

• Conversion of existing Hope-Gorob-Vendome SAMREC Resource to JORC (2012) in October
• Optimisation of existing SRK underground mining scoping study completed on the Hope-Gorob-Vendome copper project
• Early exploration work on the Botswana copper projects including geophysics, soil geochemistry and mapping
• Diamond drilling the extensions / down-dip of the existing resource at Hope-Gorob-Vendome
• Re-assaying of diamond cores at Hope-Gorob-Vendome for other metals (as only were assayed for Copper)
• Geophysics on the Rhineland copper project
• Mapping of cross-cutting structures and sampling along the Rehderstal Fault which extends for over 9km within the Rhineland copper project, the host / source of numerous copper-gold-cobalt deposits in Namibia

Other Key Points :

• Highly experienced and capable Management team and Board with a wealth of experience in Botswana and greater Africa
• The MD – Dr Hills made Discovery Metals (DML) historical discovery of the Boseto deposit in Botswana and turned DML from a $10m market cap to $200m market cap company
• Huge amount of previous exploration data which de risks the assets and provides walk up drill targets
• Scoping study was completed in 2012 on Hope-Gorob project by SRK showing good economics, which can be further optimised and modelled on other metal credits, in addition to copper
• Existing high grade Copper Resource (SAMREC Code which will be converted to JORC code prior to IPO) puts Virgo ahead of many of its ASX peers and underpins valuation
• Existing Fluorspar resource of more than 5.77Mt of fluorite at an average grade of 24.1% – world market price of US$450/t – underpins valuation – proximal to existing fluorspar producer with potential toll treatment options
• 203 diamond drill holes with available core which is being re-assessed for near term exploration programs which includes further geophysics and drilling
• Extensive land holding of advance greenfield copper projects located in the Kalahari Copper Belt, Botswana, along geological strike of recent large discoveries identified by Cupric Canyon Capital (US), MOD Resources Limited (ASX:MOD) and Kopore Metals Limited (ASX: KMT)
• Over 200km strike zone remains mostly untested with high probability of extensions to existing discoveries and resources.
• Founders have put significant sweat equity and personal funds into the business already
• Highly compelling valuation at an EV of just $1.7m – comparable peers trading at a valuation of over $10m
• MD and Board is highly experienced in equity markets having already made world class copper discoveries and on other ASX listed Boards
• Board has extensive experience in Botswana
• Strong news flow pipeline (significant value adding announcements) prior to IPO and post the IPO.

Investment Highlights :

•  Focused copper company with an attractive portfolio of advanced exploration and brownfield copper project located in the mining friendly jurisdictions of Botswana and Namibia
•  Advanced Hope, Gorob and Vendome Copper Projects located on the Matchless Copper Belt in  Namibia,   covering an area of 34,460Ha and hosting a combined resource of approximately 7Mt @ 2% Cu (0.5% Cu cut-off) in accordance with SAMREC Code (2007)
•  Previous exploration at the Hope, Gorob and Vendome Copper Projects includes 203 diamond drill holes, an exploration shaft and drive and an SRK underground mining scoping study completed in 2012
•  Rhineland  Fluorite  and  Copper  Project  hosts  an  established  fluorite  resource  of  5.77Mt  @  24.1%  and demonstrated Copper mineralisation and showings
•  Historical exploration demonstrates copper mineralisation with grades from 1% Cu to 3.24% Cu
•  Excellent gold and cobalt (>300 ppm Co) potential
•  Extensive landholding in the Kalahari Copper Belt, Botswana, prospective for copper / silver projects, including areas proximate to ground that has yielded valuable discoveries for Cupric Canyon Capital  (US  Private Equity), MOD Resources Limited (ASX: MOD; +A$100m Market cap) and also being  explored  by Kopore Metals (ASX: KMT)

Seed Placement Terms Sheet

VIR Seed Presentation September 2018

Focused Copper Exposure – ASX Listed Peer Comparison

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