a gold-silver offtake, royalty, streaming company ... · vale/silver wheaton stream ($2.0b),...

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A Gold-Silver Offtake, Royalty, Streaming Company Commencing December, 2017

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Page 1: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

A Gold-Silver Offtake, Royalty, Streaming CompanyCommencing December, 2017

Page 2: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Disclaimer

This presentation is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Nueva

Granada Gold Corp. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold

in the United States absent registration or an applicable exemption from registration.

Information set forth in this presentation may contain forward-looking statements. Forward-looking statements are statements that relate to

future, not past events. In this context, forward-looking statements often address a company's expected future business and financial

performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or

event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements

involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other

future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking

statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks

associated with mining and mineral processing; fluctuations in gold and other commodity prices; title matters; environmental liability claims and

insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and

tax consequences to U.S. Shareholders.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the

Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should

change. Investors are cautioned against attributing undue certainty to forward-looking statements.

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Page 3: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

0

10

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60

70

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

VanEck's Gold Mining Index

SMA 100

SMA 200

Gold Producers Mining Index 10yrs

Why NGG – The timing is Right

Historical Inflection Points

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Page 4: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Why NGG – The timing is Right

❖ The precious metal markets may be on the verge of a historical resurgence to more sustainable operating

price levels as a safe haven due to physical shortage, debt levels and market turmoil

❖ Significant deal flow and outsized returns are available and further expected in the junior and mid-tier

producer sector

❖ Considerable junior producer network established by existing SVI refining relationships and addition of

David Morgan, Director, of The Morgan Report and Silver-Investor.com

❖ NGG focus is on advanced developers, junior and mid-tier producers which are variably de-risked from

permitting, construction and financing risk factors

Strong emphasis on precious metals exposure

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Page 5: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Refining, hedging and logistics solutions Financing

Upfront investment

Payment to miner

3.25% Discount tomarket rate

Highlights• Non dilutive, bullion-backed financing that is balance sheet

neutral• Well perceived by the market vs streams and royalties• Attractive financing rate based on the project risk profile• Customized service-oriented refining solutions• Commercial terms secured for the contract term: operational

advantages for the miner• No cap on metal price upside unlike streams

US$ 50 M Investment

c c c c c c

Offtakes / Refining Contracts Explained

As an example:

Stream vs Offtake cost of 200K oz against Au price

5

4

6

8

10

12

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1250 1300 1400 1500 1600 1700 1800U

SD M

illio

n Stream Cost

Offtake Cost

1285

With a price of US$ 1,800/oz a stream is

US$ 3.1M more expensive

Page 6: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Sun Valley Industries – Track Record

❖ Sun Valley Industries (“SVI”) is a subsidiary of Sun Valley Investments, a private equity fund

headquartered in Houston, TX

❖ SVI has completed over US$2 billion in historical gold and silver transactions in the Americas and

Asia

❖ The Company has strategic gold refining partnerships with a total installed capacity of 1.5 million

oz/y, currently processing approximately 1 million oz/y

❖ SVI structures unique financial products in order to secure long-term relationships with precious

metals producers

❖ SVI works with LBMA partner refineries or processes physical metal at its own facilities (CIIGSA –

Medellin)

Proven qualified refining expertise

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Page 7: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Royalty/Streaming Market

-100%

-50%

0%

50%

100%

150%

200%

250%

5-year 3-year 2-year 1-year YTD 6-Month

Sr. Royalty

Jr. Royalty

Gold

Silver

Royalty companies historical returns

1,08

1,31

1,43

2,01

2,3

0 0,5 1 1,5 2 2,5

Sandstorm

Wheaton

Osisko

Royal Gold

Franco-Nevada

Avg 1,63

Royalty majors relative valuation (Price/NAV)

1,43

1,23

1,12

0,57

0 0,2 0,4 0,6 0,8 1 1,2 1,4 1,6

Altius

Maverix

Anglo Pacific

AuRico

Royalty Juniors relative valuation (Price/NAV)

Avg 1,09

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Page 8: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Initial Nueva Granada Assets

Project Operator Deal Type Signed Terms Oz / year Status

Segovia (SVI)

Refining Contract

20152% average Au and 14%

Ag offtake discounts Over 11 years

Au ~ 130KAg~130K

Production

Caylloma(Lemuria)

Royalty 2016 2% Ag NSR for LOM Ag ~ 1,2M Production

Marmato (SVI)Refining Contract

2014

2% average Au and 14% Ag

offtake discounts Over 11 years

Au ~ 30KAg ~ 35K

Production

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Page 9: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Segovia – Gran Colombia Gold

Country Colombia

Operator Gran Colombia Gold

Commodities Gold, Silver

Total Au M, I & I Resources 1.73 MM Oz @ 11.7 g/tonne

Expected Ag Pdn 2.15 Oz MM @ 16.46 g/tonne

2016 Au Production 126,237 Oz

NGG Asset – 100% production Offtake

Contract Term 11 years

Au discount From 2.5% to 1.4%

Ag discount 15%

Mine Overview

Highlights

• Segovia operation has produced over 5 million ounces in the last 150 years

• 2017 production outlook 130k Au Oz

• Recent mine extension plan up to 2026, upside potential remains

• Recent Cash Cost of USD 620/Oz

Recent Drill ResultsHigh gold grades generated from 74 drill holes (9,472 meters) were intersectedon projected vein systems with maximum grades:❖Providencia Vein: 134.6 g/t Au and 95.4 g/t Ag over 0.73 meters,❖ Sandra K vein: 43.2 g/t Au with 37.5 g/t Ag over 2.05 meters

Colombia, AntioquiaSegovia Mining District

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Page 10: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Marmato – Gran Colombia Gold

Country Colombia

Operator Gran Colombia Gold

Commodities Gold, Silver

Total Au Resources 14.18 MM Oz @ 0.9 g/tonne

2016 Au Production 23,450 Oz

NGG Asset – 100% production Offtake Mine Overview

Colombia, CaldasMarmato mining district

Contract Term 11 years

Au discount From 2.5% to 1.4%

Ag discount 15%

Recent Drill Results

March 2017, MND-11-16, intersected 8.98 m at 20.99 g/t Au and 7.11 g/t Ag from112.32 m to 121.30 m depth followed by 50.40 m at 2.20 g/t Au and 3.32 g/tfrom 121.30 m to the end of the hole at 171.70 m.

Project Highlights

• Modernization project and exploration 100% covered by the off-take

• New NI 43-101 in 4Q2017 will increase underground resources

• 2017 production guideline: 25,000 Oz

• Cash Cost USD 1,062/Oz

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Page 11: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Caylloma – Fortuna Silver Mines

Country Peru

Operator Fortuna Silver Mines Inc.

Commodities Silver,Gold,Zinc,Lead

Total Ag Resources 23.5 MM Oz @ 111 g/tonne

2016 Ag Production 1.3 M Oz

NGG Asset – 2% Ag NSR Mine Overview

Contract Term LOM

NSR % 2%

Royalty threshold* 21M Ag Oz

Life-of-mine of ~10 years✓ Historical average production of 2 million ounces of silver per year,

currently mining at 1.2Moz/yr✓ Increase in mine production from ~1,300tpd in 2015 to ~1,430tpd

operation in mid 2016

Project Highlights

• The mine has been in production since 1995

• 1,430tpd u/g operation with ore resources of 27 mm oz Ag

• Potential for further exploration in the region with over 35,000ha of

land package, ~US$4M in brownfield exploration and US$10M in

sustaining capex for 2017

Perú, Arequipa*Threshold is expected to hit by 2019

based on current mine plan

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Page 12: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Bios

VIKRAM SODHIExecutive Chairman

Private equity professional with over 20 years ofinvestment experience. Founded and co-foundedseveral private equity funds in the US, Latin America,and India which have raised over US$1 billion ofinstitutional capital from sovereign governments,pension funds, foundations, endowments, andinsurance companies.

Formerly an investment banker at Morgan Stanley andNuveen Investments, Mr. Sodhi is a graduate of YaleUniversity where he had a full scholarship.

Fluent in English, Spanish, Portuguese, Hindi andPunjabi.

ABRAHAM DROST M.Sc., P.Geo. President & CEO

Mr. Drost was most recently CEO and Director of CarlisleGoldfields Ltd. (CGJ:TSX) at the sale to Alamos Gold Inc.(AGI:TSX). He is a former Chairman of Premier Gold MinesUSA, Inc. and Premier Royalty Corporation, former CEO andfounding Director of Premier Royalty Inc. (NSR:TSX), prior tothe sale to Sandstorm Gold.

Mr. Drost is a former President and Director of Sabina Goldand Silver Corporation (SBB:TSX), former President andDirector of Sandspring Resources Inc. (SSP:TSXV). He was aformer Director of Mega Precious Metals Inc. (MGP:TSXV)at the recent sale to Yamana. Earlier, Mr. Drost was withthe Mines and Minerals Division of the OntarioGovernment.

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Page 13: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

BiosDAVID MORGAN Director

Mr. Morgan is a widely recognized analyst in the preciousmetals industry and consults for hedge funds, high networth investors, mining companies, depositories and bulliondealers. He is the publisher of The Morgan Report and thenew book “The Silver Manifesto”. Mr. Morgan is a featuredspeaker at investment conferences in North America,Europe and Asia.

MIKE DOYLEVP Technical Services

Mr. Doyle has over 35 years experience in mining andexploration, with Rio Tinto, Inmet and Wardell- Armstrong.Mr. Doyle has experience across exploration, feasibilitystudies and construction of major mining projects. He is aqualified Engineer and Geologist with a MSc inEnvironmental Management (Imperial College, London).

CARLOS VICENSStrategic Advisor

Mr. Vicens is CFO of Neo Lithium Corp. FormerlyScotiabank’s Investment Banking Mining VP. Participated inover $10B of M&A transactions and $5B in equity, debtissuances, stream & royalty transactions such as:Vale/Silver Wheaton stream ($2.0B), HudBay/SilverWheaton stream ($885M) and Royal Gold’s acquisition ofInternational Royalty Corporation ($750M).

DANIEL HENAOVP Business Development

With over 10 years in the mining industry, Mr. Henao is anexperienced leader focused on generating project valuethrough high-impact exploration, production, acquisition,sales and joint-venture strategies. Former VP Finance ofmultiple publicly traded Canadian mining companies.

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Page 14: A Gold-Silver Offtake, Royalty, Streaming Company ... · Vale/Silver Wheaton stream ($2.0B), HudBay/Silver Wheaton stream ($885M) and Royal Gold’sacquisition of International Royalty

Highlights

Headquarters:

1st Floor, Limegrove Centre

Holetown, Barbados

(+1) 2817518975

www.ngg.gold

Abraham Drost [email protected] Daniel Henao [email protected]

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