Roxgold Inc. Annual Information Form for The
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ROXGOLD INC. ANNUAL INFORMATION FORM FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013 Dated July 2, 2014 TABLE OF CONTENTS GENERAL .................................................................................................................................................................... 1 STATEMENT REGARDING FORWARD LOOKING STATEMENTS .................................................................... 1 CORPORATE STRUCTURE ....................................................................................................................................... 2 GENERAL DEVELOPMENT OF THE BUSINESS .................................................................................................... 3 DESCRIPTION OF BUSINESS ................................................................................................................................... 6 MINERAL PROPERTIES............................................................................................................................................. 8 RISK FACTORS ......................................................................................................................................................... 29 DIVIDENDS ............................................................................................................................................................... 39 DESCRIPTION OF CAPITAL STRUCTURE ........................................................................................................... 39 MARKET FOR SECURITIES .................................................................................................................................... 40 DIRECTORS AND OFFICERS .................................................................................................................................. 40 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ........................................... 48 LEGAL PROCEEDINGS ............................................................................................................................................ 48 TRANSFER AGENT AND REGISTRAR .................................................................................................................. 49 MATERIAL CONTRACTS ........................................................................................................................................ 49 EXPERTS .................................................................................................................................................................... 49 ADDITIONAL INFORMATION................................................................................................................................ 50 ( i ) GENERAL Reference is made in this annual information form (the “Annual Information Form” or “AIF”) to the audited financial statements (the “Financial Statements”) and management’s discussion and analysis for Roxgold Inc. (the “Company” or “Roxgold”) for the fiscal year ended December 31, 2013, together with the auditor’s report thereon. The Financial Statements are available for review on the SEDAR website located at www.sedar.com. All financial information in this Annual Information Form is prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Unless otherwise noted herein, information in this Annual Information Form is presented as at December 31, 2013. In this AIF, references to “$” are to Canadian dollars and references to “US$” are to United States dollars. All references in this AIF to the Company also include references to all subsidiaries of the Company as applicable, unless the context requires otherwise. STATEMENT REGARDING FORWARD LOOKING STATEMENTS Except for statements of historical fact relating to the Company, certain information contained in this Annual Information Form constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the potential of the Company’s current or future property interests; the future price of gold; success of exploration and mining activities; cost and timing of future exploration, production and development; the estimation of mineral resources, the realization of mineral resource estimates; and requirements for additional capital and other statements relating to the financial and business prospects of the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology 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 addition, statements relating to “resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described can be profitably mined in the future. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: unexpected events and delays during permitting; the possibility that future exploration and/or development results will not be consistent with the Company’s expectations; timing and availability of external financing on acceptable terms and in light of the current decline in global liquidity and credit availability; uncertainty of mineral resources; future prices of gold and other minerals; government regulation of mineral exploration and development; failure of equipment or processes to operate as anticipated; risks inherent in mineral exploration, production and - 2 - development including environmental hazards, industrial accidents, and unusual or unexpected geological formations; and uncertain political and economic environments. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. CORPORATE STRUCTURE Roxgold Inc. was incorporated under the Company Act of the Province of British Columbia by Memorandum and Articles on November 22, 1983 under the name "Kilembe Resources Ltd.", with an authorized capital of 10,000,000 common shares without par value. By a series of special resolutions filed with the Registrar of Companies, the Company increased its authorized capital to 100,000,000 common shares without par value. By a Certificate of the Registrar of Companies issued July 15, 1991, the Company changed its name to “Liquid Gold Resources Inc.” By a Certificate of the Registrar of Companies dated April 19, 1999, the Company changed its name to “West African Venture Exchange Corp.” By a Certificate of the Registrar of Companies issued September 17, 2002, the Company changed its name to "Wave Exploration Corp." By a Certificate of the Registrar of Companies issued January 15, 2007, the Company changed its name to “Roxgold Inc.” The common shares of the Company (“Common Shares”) are listed and posted for trading on the TSX Venture Exchange (the “TSXV”) under the symbol "ROG". The head and registered office of the Company is located at 360 Bay Street, Suite 500, Toronto, Ontario M5H 2V6. The following chart illustrates the inter-corporate relationships of the Company and each of its subsidiaries: - 3 - GENERAL DEVELOPMENT OF THE BUSINESS Three Year History The following describes the general development of Roxgold’s business over the last three completed financial years. 2014 Yaramoko Development On June 4, 2014, Roxgold filed its Technical Report (as defined below) in respect of the Yaramoko property. The Feasibility Study was led by SRK Consulting (Canada) Inc. and prepared in partnership with Mintrex Pty Ltd., Knight Piésold Pty Ltd. and Cardno BEC Pty Ltd. Please see “Mineral Properties – Yaramoko Property – Summary of Technical Report” below. On May 8, 2014, the Burkina Faso Ministry of Mines issued a permit expansion enlarging the total Yaramoko permit from 167 km2 to 196 km2. This provides the Company with additional prospective exploration ground along the Hounde belt margin. Equity Financing On March 25, 2014, Roxgold completed a bought deal public offering of Common Shares through a syndicate of agents led