Lexam Vg Gold Inc. Annual Information Form As at December 31, 2016
Total Page:16
File Type:pdf, Size:1020Kb
LEXAM VG GOLD INC. ANNUAL INFORMATION FORM AS AT DECEMBER 31, 2016 March 22, 2017 TABLE OF CONTENTS PRELIMINARY NOTES .............................................................................................................................................. 3 DEVELOPMENT AND DESCRIPTION OF THE BUSINESS .................................................................................... 4 THE BUFFALO ANKERITE PROPERTY ................................................................................................................. 22 THE FULLER PROPERTY ........................................................................................................................................ 27 THE PAYMASTER PROPERTY ............................................................................................................................... 33 THE DAVIDSON TISDALE PROPERTY ................................................................................................................. 39 OTHER PROPERTIES ................................................................................................................................................ 46 DIVIDEND POLICY .................................................................................................................................................. 46 DESCRIPTION OF CAPITAL STRUCTURE ............................................................................................................ 46 MARKET FOR SECURITIES .................................................................................................................................... 46 DIRECTORS AND OFFICERS .................................................................................................................................. 47 LEGAL PROCEEDINGS AND REGULATORY ACTIONS ..................................................................................... 49 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ............................................ 49 TRANSFER AGENT AND REGISTRAR .................................................................................................................. 49 INTERESTS OF EXPERTS ........................................................................................................................................ 50 TECHNICAL INFORMATION .................................................................................................................................. 50 AUDIT COMMITTEE AND RELATIONSHIP WITH AUDITORS .......................................................................... 50 ADDITIONAL INFORMATION ................................................................................................................................ 51 RISK FACTORS ......................................................................................................................................................... 51 SCHEDULE A ............................................................................................................................................................. 57 APPENDIX A ............................................................................................................................................................. 61 APPENDIX B .............................................................................................................................................................. 73 APPENDIX C .............................................................................................................................................................. 77 APPENDIX D ............................................................................................................................................................. 86 PRELIMINARY NOTES Basis of Presentation Unless the context otherwise requires, references to “Lexam VG”, the “Company”, the “Corporation”, “us”, “we” or “our” include Lexam VG Gold Inc. and each of its subsidiaries. The Company prepares and files its annual information form (“AIF”), consolidated financial statements and management discussion & analysis in Canadian dollars (“C$” or “$”) and in accordance with International Financial Reporting Standard (“IFRS”). The following abbreviations for measurements are used in this document: ft – foot, gpt – grams per tonne, km – kilometres, koz – thousand ounces, m – metres, M – million, Mt – million tonnes, Mtpa – million tonnes per year, µm – micrometre, opt – ounces per ton, oz – ounce, ppm – parts per million, t – tonne, tpd – tonnes per day. Date of Information Unless otherwise specified all information in this AIF is as at December 31, 2016. Exchange Rate Information This AIF contains reference to Canadian dollars and United States dollars. All dollar amounts referenced, unless otherwise indicated, are expressed in Canadian dollars. United States dollars are referred to as “US Dollars” or “US$”. Forward-Looking Statements and Information Certain statements and information in this AIF, including all statements that are not historical facts, contain forward- looking statements and forward-looking information within the meaning of applicable Canadian and US securities laws. Such forward-looking statements or information include, but are not limited to the estimated future price of gold, estimation of mineral resources and reserves, exploration and development capital requirements, changes to regulatory requirements, our goals and strategies. Often, these statements include words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In making the forward-looking statements and providing the forward-looking information included in this AIF, we have made numerous assumptions. These assumptions include among other things, assumptions about the price of gold, anticipated exploration costs and expenditures, future production and recovery, that there is no further material deterioration in general economic conditions and that we are able to obtain the financing required for continued operations. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statements will prove to be accurate. By their nature, forward-looking statements and information are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from future results, performance or achievements expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include among other things the following: actions by, and our relationship with partners, and to finance our day-to-day operations and planned growth and development, any decline in the price of gold, changes in general economic and business conditions, interest rate and exchange rate fluctuations, litigation risk, discrepancies between actual and estimated production, mineral reserves and resources estimation; operational and development risk; the speculative nature of mineral exploration and regulatory and environmental risks. See this AIF for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although we have attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of the factors are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update forward-looking statements - 3 - or information as a result of new information or events after the date of this AIF except as may be required by law. All forward-looking statements and information made in this document are qualified by this cautionary statement. Cautionary Note to U.S. Investors – Information Concerning Preparation of Resource and Reserve Estimates The AIF has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. National Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101”) is a rule of the Canadian Securities Administrators, which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the requirements of the SEC, and reserve and resource information incorporated by reference herein may not be comparable to similar information disclosed by U.S. companies. One consequence of these differences is that “reserves” calculated in accordance with Canadian standards may not be “reserves” under the SEC standards. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms defined in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum