Investment Highlights


  1. Aquila owns a portfolio of high grade, gold-rich projects in the Upper Midwest, USA
    1. Three projects in a Tier 1 jurisdiction underpinned by gold with exposure to key metals including copper
    2. Aquila offers investors exposure to new district exploration potential in a safe jurisdiction with access to infrastructure
    3. Projects are located on the underexplored Penokean VMS Belt – over 24 known deposits and only 1 past-producer
    4. Developers have been overlooked for years – solid, advanced stage and de-risked projects in Tier 1 jurisdictions are scarce and are becoming targets of investor and M&A interest


  1. Aquila’s flagship 100%-owned Back Forty Project in Michigan is approaching shovel-ready status
    1. Well-advanced through permitting; focused on pre-construction activities; a true “company builder
    2. Key permits have been issued:
      1. EGLE, the Michigan regulator, previously issued Back Forty a Mining Permit, Air Permit, Water Discharge Permit, and Wetlands Permit
      2. In January 2021, an administrative law judge overturned the issuance of the Wetlands Permit
      3. The amended Mining Permit has been challenged in administrative court
      4. Dam Safety Permit application submitted November 2020


  1. Back Forty is well-defined with leverage to gold – Advanced stage developer
    1. Open Pit Feasibility Study published in 2018
    2. PEA incorporating known underground Mineral Resources announced August 5, 2020
      • Long-term consensus prices including $1485 gold:
        • After-tax NPV $176M, After-tax IRR 26.1%, payback 2.4 years
      • $2000 gold:
        • After-tax NPV $316M, After-tax IRR 37.9%, payback 1.6 years
      • At $2,000 gold, over 52% of revenue is generated by gold
      • 1.1 million oz Au in the M&I Mineral Resource classification
      • On a gold equivalent basis, 2.5M oz AuEq M&I at a grade of 4.3 g/t AuEq
      • ~130,000 meters drilled at Back Forty alone and ~US$90 million has been invested in the Project by Aquila and past JV partner Hudbay


  1. Back Forty has tremendous exploration potential
    1. The deposit is open at depth with additional satellite targets nearby
    2. VMS deposits occur in clusters


  1. Aquila owns two additional exploration assets on the belt
    • Bend: Copper-gold deposit only 130 miles from Back Forty in Wisconsin
      • Plans to drill are in progress, subject to receipt of Prospecting Permits and financing
      • “Hub and spoke” model: Potential to use Back Forty as a central processing hub for Bend and other deposits on the belt
      • The market is currently assigning zero value to Bend
    • Reef: High grade gold deposit only 80 miles from Back Forty in Wisconsin
      • Plans to surface value for AQA shareholders in progress
      • The market is currently assigning zero value to Reef


  1. Aquila has a strong stakeholder base
    1. Orion Mine Finance (29%), Ruffer LLP (13%), and Hudbay (11%) together own over 50% of Aquila’s shares
    2. Access to additional capital through Osisko Gold Royalties
      1. Osisko committed US$60 million to advance Back Forty
        • US$10 million equity plus US$50 million stream


  1. Strong management team and board
    1. Premier permitting team in Michigan
    2. Consulting geologists have worked the Belt since the 1970s
    3. Strong Board with mix of mine building and capital markets expertise


  1. Extremely attractive valuation, especially given location and stage of development
    1. Trading at US$11/oz AuEq versus a peer median of US$42/oz AuEq
    2. Trading at a Price/NAV of 0.3x versus a peer median of 0.4x (March 2021)
    3. Zero value for upside potential at Back Forty or the district-scale potential along the Penokean Belt



Shares Outstanding




Fully Diluted


*As at December 31, 2020

Leave a Reply