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April 2020
DisclaimerThe value of the investment may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount they have invested in the fund.
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ATTENTION! THIS INVESTMENT FALLS OUTSIDE AFM SUPERVISION. NO LICENSE AND NO PROSPECTUS REQUIRED FOR THIS ACTIVITY.
Te a m P l e t h o r a P r i v a t e E q u i t y
Douwe van Hees Fund Manager
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• 2008-2013: Private investor in junior exploration companies
• 2010: Working for a junior explorationcompany in Canada
• 2013-2014: Advisor PPM Fund
• 2014-now: Manager PPM Fund
• 2018-now: Manager PPE Fund
Peter Vermeulen Advisor
• 2007: Master of Economics – Finance & Investments (University of Groningen, The Netherlands)
• 2012-2014: Founder & manager PPM Fund
• 2014-now: Advisor PPM Fund
• 2018-now: Advisor PPE Fund
Thomas KwantCorporate Secretary
• 2012-2013: Consultant KP&T
• 2013-2014: Consultant A&P Support
• 2014-2017: Accountmanager MVGM
• 2018-now: Corporate Secretary PPE Investments
P l e t h o r a P r i v a t e E q u i t y
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Launched in January 2018 with C$ 1.7M of capital by the founders
Building on the success of Plethora Precious Metals Fund (CAGR: +14.0% vs. -8.2% for the GDXJ*)
Focus on early stage mineral exploration
Return since launch: +34.0% as of end of 2019
Current assets under management: C$ 12.5M
Return of capital to investors: 50% of net realized profits
*GDXJ – Junior Gold Miners ETF. CAGR = Compound Annualized Growth Rate. Figures as of April 10, 2020
F o c u s o n e a r l y s t a g e m i n e r a l e x p l o r a t i o n
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W h y m i n e r a l e x p l o r a t i o n ?
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Lack of capital for grassroots mineral exploration- First mover advantage
Lack of new discoveries and decreasing mine reserves- Perpetual demand for new discoveries by miners
Vast majority of public exploration companies is highly inefficient with limited available capital
- Decreasing odds of success
Large revaluations with IPOs of prospective exploration projects- Liquidity and visibility premium
Observations
Incorporate private exploration companies → monetize after exploration successOpportunity
L a c k o f c a p i t a l f o r m i n e r a l e x p l o r a t i o n
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L a c k o f n e w d i s c o v e r i e s
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D e c r e a s i n g m i n e r e s e r v e sE x a m p l e : g o l d
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D e m a n d f o r n e w d i s c o v e r i e s ( b y m i n e r s )E x a m p l e : n i c k e l
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Both nickel discoveries are comparable to a nickel discovery by Sirius Resources in 2012
Sirius Resources was acquired in 2015 by Independence Group for A$ 1.8 Bn
C o m p e t i t i v e e d g e P l e t h o r a P r i v a t e E q u i t y
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C$ 20,000C$ 0
C$ 20,000
Public listing costs
C$ 12,000Legal and accountancy
Office C$ 0
C$ 50,000
C$ 0
C$ 20,000
C$ 300,000
C$ 100,000
Management
Marketing
PPE company (16% G&A)Average public listed company (±50% G&A)
R e v a l u a t i o n o f p u b l i c c o m p a n i e s
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Dataset of 849 publicly traded junior exploration companies*
Average market capitalization: C$ 18.9M
Median valuation: C$ 5.6M
Average book value PPE companies: C$ 1.2M
*Listed on the Toronto Venture Exchange or the Canadian Securities Exchange as of 10th of April 2020
O u r p r o c e s s
Opportunistic: no specific focus on a single natural resource as we are commodity price agnostic
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Choose strong and stable mining jurisdictions
Conduct fieldwork as soon as possible, focus on collecting hard data
Incentivize the leading geologists (“Rock Stars”) with a significant share position
Risk management: kill projects as soon as possible
Hire world renowned field specific experts whenever needed. Upfront costs outweigh possible future misallocation of capital
R i s k M a n a g e m e n t : P h a s e d I n v e s t m e n t A p p r o a c h
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Phase 3 : Systematic field work relying heavily on geochemistry – Estimated costs C$100,000
Phase 4 : Anomalies identified, follow-up fieldwork to zoom in on target – Estimated costs C$400,000
Phase 2 : Incorporation and field “fatal flaw” testing concept – Estimated costs C$50,000
Phase 1 : Concept generation – Estimated costs C$10,000
Phase 5 : Possible geophysics and further fieldwork to refine target – Estimated costs C$400,000
R o c k S t a r s
Daniel JamesChief Operating Officer
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Exploration Geologist
• 2011-2018: President of Medgold Resources leading an exciting new gold-silver discovery in Serbia (May 2018)
• 15+ years of experience in gold exploration in Africa, Asia andEurope
Quinton HennighTechnical Advisor
Exploration Geologist (Ph.D)
• Currently chairman of Novo Resources: Instrumental in thegrowth of the company to a market capitalization of >C$ 1 Billion
• 25 years of experience in worldwide gold exploration for companies suchas; Homestake Mining, NewcrestMining & Newmont Mining
David ClarkTechnical Advisor
Exploration Geologist
• Currently president of BonavistaResources
• 20 years of experience in mineralexploration. He has explored for Ni-Cu-PGE magmatic sulphide, intrusion-hosted PGE, and orogenicand epithermal precious metals on projects in Canada, Mexico & Central America, USA, and Europe.
G l o b a l E x p l o r a t i o n
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Sweden• Magmatic Ni (Co-Cu) sulphides• Multiple occurrences staked and 3
projects optioned from third-parties• SkyTEM survey identified > 25 possible
conductors
Newfoundland, Canada• Epithermal Au in the Burin Peninsula• Au-Cu discovery at Hickey’s Pond• Attracted investment mid-tier mining
company
Ireland• Irish- and SedEx-type Pb-Zn• Two lead projects; Tallow & Castleblaney• Drill-readyNevada US (Ubica)
• Optioned Au-Ag project• Very high-grade mineralization• CSAMT survey pending
Nevada, US (Da Venda)• Epithermal Au-Ag• Large-scale target generation
with 2 lead projects emerging • Two project drill ready
Arizona, US• Epithermal Au-Ag• Multiple targets generated• On-going early-stage fieldwork
Nova Scotia / New Brunswick, Canada• Epithermal Au in the Avalon Belt• Project killed after phased
exploration in 2019• New project generation ongoing
Montenegro / Romania • Epithermal Au, porphyry Cu & Pb-Zn skarn• Early-stage targets generated• Prime polymetallic exploration target
discovered after first pass exploration
I n s u m m a r y
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Generateconcepts
Incubate
Explore
MonetizeReturn of capitalto investors: 50% of net realizedprofits
Write off
Currently raising up to € 1M
Closing date: May 1st, 2020
Subscription Price: -5/+5% vs. Year End 2019
F u n d S t r u c t u r e
Stichting Legal Owner Plethora Private Equity
€ 100,000
2 years
1 year
50% of net realized profits*
1% annually
20% of realized profits
0%
0%
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Custodian
Minimum investment
Initial lock-up
Redemption notice
Distribution policy
Management fee
Performance fee
Entry fee
Exit fee
* After deduction of performance fees. Please refer to the Information Memorandum for further information.
Douwe van HeesFund Manager
+31 (30) 20 777 20+31 (6) 14 514 692