Transcript BUILDING A GLOBAL PLAYER FROM A BEE COMPANY

BSC RESOURCES LTD
A BLACK CHIP IN BASE METALS
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South Africa’s Junior Mining
Landscape
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MPRDA came into force in May 2004
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“Use it or lose it” principle unlocked non-strategic assets by majors
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Interest in Exploration by foreign juniors
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First time participation of Black South Africans in the ownership and development of
the mineral resources of South Africa
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The Creation of BSC Resources Ltd
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Incorporated in November 2005
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Granted prospecting rights of 39000ha within 6 months (Currently have over
70000ha)
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Scoping study identified drill positions
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Raised ZAR18.2m (South Africa, Canada, USA)
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Granted prospecting permit for historic Messina Copper Dumps and Oxide caps
(September 2007)
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Completed Scoping study on the Musina Copper Dumps and Oxide Caps (January
2008)
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Strategic Overview
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Hands on Management Team
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Focused on Base and Precious Metals
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Develop current projects to Bankable Feasibility
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Avoid equity participation in non-producing junior miners
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Geographic Diversification (Botswana)
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Capitalise on 2009 MPRDA deadline (“Use it or Lose it”) to partner with majors
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Act as a hub for JV applications with emerging black miners
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Dual list the company in Toronto and Johannesburg
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BSC Value Add
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Identify
– Early cash flows (Musina Copper)
– Potential for bulking up with step-out exploration (Insizwa Nickel)
– Acquisition cost = Application process (Zeranza PGM and Burgesfort)
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Package
– Comprehensive geological work
– Involvement of previous owners and management
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Unlock
– Efficient capital raising
– Tax efficient structures
– Access to global mining majors for blue sky JV’s
– Distribute shares in producing assets to shareholders
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BSC and Mining Charter
Mining Charter
BSC Response
Ownership
- 51% Black Ownership
Employment Equity
- 75% Black Executive Management
- 75% Black Board composition
Local Community and
stakeholders
- Good relationship with all three tribal authorities and local government
- Established a Mining Committee that meets on monthly basis
- Regular donations to locals schools
- All general labour sourced from the community (30 Jobs created)
- Establishment of community trust
- 50% Female staff complement
Procurement
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- Preference given to procurement from local, empowered suppliers
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Corporate Social Investment
– Appointed Greater Good South Africa, to design and develop and Implement our
CSI policy
– Main Focus is education (Maths, Science and Technology ) at high school level
– Our CSI policy is designed to create skills which will benefit the areas where we
operate, to alleviate poverty.
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Corporate Overview
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Share Capital
– 2 000 000 Issued (As at Jan 2008)
– 2 100 000 Fully diluted( As at Jan 2008)
– 10 million Rand in treasury ( As at Jan 2008)
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Strategic Relationships
– Nedbank Corporate – Bankers
– PricewaterHouse Coopers – Accountants and Auditors
– Read Hope Phillips – Corporate Lawyers ( South Africa )
– Macleod Dixon – Corporate Lawyers ( Canada )
– Geo Mechanics – Drilling Contractors
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Management
Bongani Mtshisi – Chief Executive Officer
Bongani is a Mining Engineer who started his career at Anglo Platinum. He subsequently joined De Beers where he rose to Site
Manager of the Oaks Mine and later worked for Af Lease/ SXR. He holds a Diploma in Metalliferous Mining and a Certificate in Project
Management.
Thapelo Mokhathi – Executive Director
Thapelo holds a degree in Cost and Management Accounting and Executive Program in Mining and Minerals (Wits). He started his
career in the mining industry at Impala Platinum as a Shaft Cost Accountant at Implats 10 Shaft and later at Barplats Division. His
responsibilities included Capital Budgets, Forecasts and Management Reports. Thapelo is responsible for the administrative and
financial management of BSC.
Lazarus Nekhondela – Executive Director
Lazarus is a CA (SA) with extensive experience in Treasury and Merchant Banking, having worked and headed finance departments in
Eskom, Gensec Bank as well as at ABSA Corporate and Merchant Bank. Lazarus is responsible for deal structuring and BSC’s overall
financial strategy.
Anton Hugo – Executive Director
Anton has a background in institutional fund management, having managed portfolios at Old Mutual, Coronation Holdings, the NUMlinked Mineworkers Investment Company and Blue Bay Fund Managers. He has actively followed mining investments for 20 years.
Anton is responsible for BSC’s capital raising and investment strategy.
Louis Selekane – Non Executive Chairman
Holds a BSc (Hons) in Geology and a Master in Business Leadership (MBL) from Unisa. Louis has extensive experience in the mining
industry and amongst others worked as an Exploration Geologist for AngloGold for 10 years. He is the CEO of the South african
Diamond Board and while at the DME was closely involved in drafting the new legislation on mining rights. Louis is BSC’s NonExecutive Chairman and oversees the corporate governance and strategic direction of the company.
Darryl Levitt – Company Secretary
Is a Canadian legal practitioner operating in both Canada and South Africa. He has extensive experience in listing South African
exploration assets on the TSE, such as Pelawan (Anooraq) and more recently First Uranium and Homeland Energy. His consultancy
emphasizes on mining and Black Economic Empowerment (BEE) as well as Reserve Bank liaison.
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