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Company Presentation
July 2019
Strategy to Build and Develop Multi-Commodity
Project Portfolio - Industrial Minerals, Base and
Precious Metals
Disclaimer
Company Presentation July 2019
2
The content of information contained in these slides and the accompanying verbal presentation (together, the “Presentation”) has not been approved by an authorised person
within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may
expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should
seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind.
This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, Tertiary Minerals plc (the “Company”). The directors of the Company
have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief.
This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell or issue, or
any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any
inducement to enter into any contract therefor.
The information in this Presentation is provided as at the date of this presentation and as such is preliminary in nature, has not been fully verified by the Company and is subject to material amendment, updating and
change. The Company undertake no obligation to provide the recipient with access to any additional information or to update this Presentation or any additional information or to correct any inaccuracies in any such
information which may become apparent. This document sets out certain features of the Company and does not purport to provide a complete description of the Company or the shares in the Company.
No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors,
misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it.
By accepting this Presentation you confirm, represent and warrant that you have consented to receive information in respect of securities of the Company and other price-affected securities (as defined in the Criminal
Justice Act 1993 (“CJA”)) which makes you an “insider” for the purposes of Part V of the CJA, and you agree not to deal in any securities of the Company until such time as the inside information (as defined in the CJA)
of which you have been made aware has been made public for the purposes of the CJA.
This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the Company. The contents of this
Presentation are confidential and are subject to updating, completion, revision, further verification and amendment without notice.
The Presentation is being distributed on request only to, and is directed at, authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the
following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5)), members
and creditors of certain bodies corporate (as defined in Article 43 (2)) High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within any of these definitions should not rely on this Presentation
nor take any action upon it but should return it immediately to the Company. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to
engage in investment activity on the grounds that it is made only to certain categories of persons.
Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its
territories or possessions) (together, the “US”), Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, or to any corporation, partnership or other entity created or organised under the laws
thereof, or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. The recipients should inform themselves about and observe any such
requirements or relationship.
The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other
jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US
persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under
the US Securities Act and/or any other applicable securities laws.
Past Performance
This Presentation contains statements regarding the past performance of the Company’s ordinary shares. Past performance cannot be relied upon as a guide to future performance.
Forward-looking Statements
This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the
“Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable
expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may
vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements
speak only as at the date of this Presentation.
No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees or advisers or any other person
as to the accuracy or the completeness of the information or opinions contained herein and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions.
Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently.
January 2019
Board of Directors
Company Presentation July 2019
3
Donald McAlister, Non-Executive Director
• Accountant.
• Previously: Finance Director at Mwana Africa plc, Ridge Mining plc and Reunion
Mining. Currently: Finance Director of ZincOx Resources plc and Moxico Resources
plc.
• 24 years’ experience in all financial aspects of the resource industry, including metal
hedging, tax planning, economic modelling/evaluation, project finance and IPO’s.
• Founding director of the Company.
Patrick Cheetham, Chairman
• Geologist.
• 37 years’ experience in mineral exploration.
• 32 years’ experience in public company management.
• Founder of the Company, Dragon Mining Ltd, Archaean Gold NL and Sunrise
Resources plc.
Richard Clemmey, Managing Director
• Chartered Engineer.
• 25 years’ experience in developing and managing mining/quarrying projects
worldwide for Derwent Mining, Lafarge, Hargreaves (GB) Ltd, Marshalls plc and
CFE.
• Board Director since May 2012.
Project Portfolio
Company Presentation July 2019
4
Pyramid ProjectGold
Paymaster ProjectZinc-Copper-Lead-Silver-Cobalt
MB ProjectFluorspar
USA
Projects
Head OfficeMacclesfield
StorumanFluorspar
LassedalenFluorspar
European
Projects
RosendalTantalum
Kiekerömaa
& KaaresselkäGold
Pyramid Gold Project - Nevada,USA
Company Presentation July 2019
5
• 20 year lease – 9 patented claims
• Additional 25 mining claims staked
• Productive Walker Lane epithermal
gold/porphyry copper belt
• Nevada – 5th largest gold producer in
world
• #1 most desirable mining jurisdiction
in the world – Fraser Institute
Pyramid Gold Project - Nevada,USA
Company Presentation June
2019 6
• Historical drill hole PYR 9:
▪ 1.52m grading 17.8 g/t from 94.5 down
hole
▪ Ended in 1.52m grading 2.6 g/t Au at
115.8m depth
• 43 widespread historical surface
samples assayed up to 7.27 g/t Au,
average 1.3 g/t Au
• Cohesive 750m long open-ended gold-
mercury-arsenic soil geochemical
anomaly
Pyramid Gold Project - Nevada,USA
Company Presentation July 2019
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Planned Exploration 20191
• Soil geochemical sampling programme
• IP/Resistivity geophysical survey
• Drilling programme
Paymaster Polymetallic Project - Nevada,USA
Company Presentation July 2019
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• 19 claims staked
• Grab samples assay
up to 21% Zn, 6.5%
Pb, 3.3% Cu, 253 g/t
Ag and 0.11% Co
• Mineralisation
intermittently
exposed and
sampled over 1.7 km
strike length
• 165 soil samples
taken in March 2019
– significant elevated
levels of Ag, Cu, Zn,
Co and Pb:
▪ Ag: 17.5 ppm
▪ Cu: 896 ppm
▪ Zn: 872 ppm
▪ Co: 33 ppm
▪ Pb: 2251 ppm
Company Presentation June
2019 9
Planned Exploration 20191
• Follow up field work to define
drilling targets
• Potential drilling programme
Paymaster Polymetallic Project - Nevada,USA
MB Fluorspar Project - Nevada,USA
Company Presentation July 2019
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Highlights
• Phase 1, 2 & 3 drilling programmes
▪ 35 holes, 5,736 metres
• Large JORC Compliant Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated (9% CaF2 cut-off) 6.1 10.8
Inferred (9% CaF2 cut-off) 80.3 10.7
Total 86.4 10.7
• Phase 4 drilling programme completed following JORC
MRE
▪ 4 holes, 1,553 metres - significant lateral and depth extension of
fluorspar mineralisation proven in the Western Area
• Winner of a National Award
▪ Bureau of Land Management’s (BLM) 2017 Hardrock Small
Operator Award for its outstanding and innovative reclamation
and sustainable mineral development work on the MB Project
Company Presentation July 2019
11
MB Fluorspar Project - Nevada,USA
Planned Work for 20191
• Key Opportunities and Challenges:
▪ Early metallurgical testwork has indicated that part of
the open-pit ore is metallurgically complex, presenting
certain processing challenges, therefore the Company
has engaged the services of one of the world’s leading
consultant fluorspar metallurgists to assist with the
testwork
▪ The Company along with the consultant metallurgist
have scoped the next phase of testwork with work
commenced at SGS Lakefield in Canada - aim to
produce commercial grade acid-spar and mica
▪ Reasonable possibility that fluorspar grades could
increase to the north-west region of the deposit
following field appraisal by world renowned
geologist Dr Richard Sillitoe – future drilling target
▪ Project sensitive to transport distance/cost to market
• Following successful completion of the
testwork and modelling – Scoping Study
targeted for completion in 2019
Storuman Fluorspar Project - Sweden
Company Presentation July 2019
12
Positive Scoping Study – Scott Wilson
• Low Capex: US$ 46 million
• Average annual T/O: >US$ 34 million
• Pre-Tax NPV (8% coc): US$ 33 million
• IRR (100% Equity): 24%
• Payback: <3 years
Post Scoping Study – Key Developments
• 46 diamond core drill holes resulting in 28% increase in Mineral Resource compared with
Scoping Study – JORC Classified
• New Bulk Rail Terminal constructed – 25km from project site
• Waste:ore strip ratio reduced from 2.2t:1t to 0.8t:1t
• Potential step-change for scale of mineralisation, open laterally in all directions
• 25 Year Mine Permit awarded 2016, has since been revoked due to wider changes in
Swedish case law – Appeal process ongoing with the Swedish Government
JORC Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Indicated 25 10.28
Inferred 2.7 9.57
Total 27.7 10.21
Lassedalen Fluorspar Project - Norway
Company Presentation July 2019
13
Highlights
• Positive Scoping Study (Wardell Armstrong International) – 2012
Base Case Extended Mine CaseTonnage Mined (Underground) 3.6mt @ 22.4% Fluorspar 4.5mt @22.4% Fluorspar
Mining Rate 543,000 tpa 543,000 tpa
Acid Grade Fluorspar production/year 100,000 tpa 100,000 tpa
Mine Life 6.6 years 8.25 years
Initial Capital Cost (Capex) US$ 78 million US$ 78 million
Pre-Tax NPV (10% coc) US$ 31.6 million US$ 52.2 million
IRR (100% Equity) 20.20% 24.10%
• JORC Mineral Resource Estimate (SRK consulting)
• Re-logged and sampled 3.5 km of drill core from 23 of the 28 diamond holes drilled in the 1970’s
JORC Mineral Resource Estimate
Classification Million Tonnes (Mt) Fluorspar (CaF2%)
Inferred 4 24.6
Strategic Relationship - Possehl Erzkontor GmbH& Co. KG
Company Presentation July 2019
14
Memorandum of Understanding (“MOU”) signed with
• Highlights and Key Terms:
▪ Possehl and Tertiary intend to enter into a definitive purchase and sales agreement (“Offtake
Agreement”) under which Tertiary will agree to sell to Possehl and Possehl will commit to purchase a
minimum of 70% of commercial grade acid-spar to be produced at Tertiary’s three fluorspar
projects
▪ As a condition of the Offtake Agreement Possehl will provide part of the pre-financing to
Tertiary, where funds will be advanced by Possehl to Tertiary to assist the Company in meeting its
working capital needs and/or its capital investment needs for the development of its fluorspar projects
▪ The MOU provides for Possehl and Tertiary to enter into an Offtake Agreement, and pre-financing
to be provided by Possehl to Tertiary, for any near-term revenue generating fluorspar acquisition
targets
▪ Possehl will provide invaluable commercial and logistical support and advice to Tertiary during
the development of its fluorspar projects as the Company works towards its production goals and the
ultimate signing of the Offtake Agreement
▪ Possehl, founded in 1915 with headquarters in Lübeck, Germany, is owned by CREMER:
Founded in 1946; headquarters in Hamburg; circa 70 branch offices and holdings worldwide;
circa 1800 employees; annual revenue of >3 billion Euro; sales volume of >10.4 million tonnes
in 2016
▪ Possehl continue to support Tertiary with the development of its fluorspar assets and
evaluation of new projects in the pipeline
Royalty Interest Project
Company Presentation July 2019
15
Kaaresselkä & Kiekerömaa - Gold, Finland
• Sale of two legacy gold assets in Finland to TSX-V listed Aurion Resources Ltd
• Aurion is a Canadian listed (TSX-V: AU) exploration company primarily focusing on the
development of its Finnish gold projects, several of which are under a joint venture with
B2Gold, a main listed (TSX:BTO, NYSE MKT:BTG) gold producer and developer
• Kinross Gold Corporation own more than 8% of the issued and outstanding share capital of
Aurion
• Deal Highlights:
▪ £100,000 initial consideration paid by Aurion: £15,000 in cash and £85,000 in Aurion shares – sold in
Nov 2017 resulting in a profit of £31,264
Tertiary retains royalty interest in the projects:
▪ Pre-Production Royalty on definition of a NI 43-101 (or equivalent) Code compliant Minerals
Resource Estimate on either project:
▪ US$1.00 – US$2.00 – US$3.00 ounce gold: Inferred-Indicated-Measured Mineral Resources
▪ Net Smelter Returns Royalty (NSR) of 2% on all future gold production from either property
▪ Aurion can purchase 50% of the NSR from Tertiary for USD$1,000,000 at any time prior to
commencement of commercial production on either project
Summary
Company Presentation July 2019
16
Note 1: All target work programmes are subject to change, funding and successful completion of each phase of work
• Strategy to build and develop multi-commodity project portfolio - Industrial minerals,
base and precious metals
• Multi-commodity and location - reduce future geographical, technical, permitting and
commodity risk exposure
• Three 100% owned fluorspar assets strategically located in the USA and Europe: 13.1
million tonnes contained fluorspar (CaF2) resources (JORC classified) - advancing
through mine development cycle
• Strategic relationship and MOU signed with leading global commodities trading group,
Possehl Erzkontor GmbH & Co. KG (“Possehl”), a wholly owned subsidiary of CREMER
– MOU provides for intention to enter into Offtake Agreement and associated partial
pre-financing
• Exciting new polymetallic project portfolio - Paymaster and Pyramid
• Potential future revenue: Retained Royalty interest in Finnish gold projects
THANK YOU FOR YOUR
TIME AND SUPPORT
Building a Strategic Position
in the Fluorspar Sector
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