corporate presentation january 2017 - squarespace presentation january 2017 cse: ttx fse: ......
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Corporate PresentationJanuary 2017
CSE: TTX FSE: 1T0
Safe HarborStatement
Certain statements in this presentation constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995 and
Canadian securities legislation. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company, or other future events, including
forecast production, earnings and cash flows, to be materially different from any
future results, performances or achievements or other events expressly or implicitly
predicted by such forward-looking statements. Such risks, uncertainties and other
factors include, but are not limited to, factors associated with fluctuations in the
market price of precious metals, mining industry risks, recent operating losses,
uncertainty of title to properties, risk associated with foreign operations,
environmental risks and hazards, proposed legislation affecting the mining industry,
litigation, governmental regulation of the mining industry, properties without known
mineable reserves, uncertainty as to calculations of reserves, mineral deposits and
grades, requirement of additional financing, uninsured risks, competition,
dependence on key management personnel, potential volatility of market price of the
Company’s common shares, dilution and certain anti-takeover effects. Such
information contained herein represents management’s best judgment as of the date
hereof based on information currently available. The Company does not intend to
update this information and disclaims any legal liability to the contrary.
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Table Of Contents
Why Invest in Tantalex 4
Lithium Market Fundamentals 5
Manono-Kitotolo Region 13
Buckell Lithium Project 16
Tantalum Joint-Ventures 17
Tantalum Market Fundamentals 18
Leadership 19
Share Structure 21
Contact 22 CS
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Why Invest In Tantalex Resources
• Buckell Lithium project adjacent to and along strike south of world-class
LCT-Pegmatite Manono-Kitotolo mine.
• Fast-track 3-phase work program planned, outlining construction of Spodumene
Plant in late 2018.
• De-risked investment through: joint ventures with the State-owned company and
reputable sub-contractors.
• All properties located in the province of Tanganyika (formerly Katanga),
a mining-friendly and politically stable region.
• Accessibility to infrastructure such as electricity, roads, dams and aircraft runways.
• Hands-on management team; Operations office situated in Lubumbashi/Windhoek;
Corporate Development office in Nanjing China .
• Management and Board members with long-time expertise in mine development and
production of industrial metals, high-tech minerals, renewable energies and
electronics.
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Why Lithium and other high-tech minerals?
ELECTRONICS
Micro-capacitors in small
electronic devices such as
cell phones, Ipods/pads,
laptops &tablets,
computers, digital
cameras, automotive
electronics, game
consoles, etc.
ALLOYS
Carbide tools for
metalworking equipment;
superalloys for jet engine
components; chemical
process equipment;
nuclear reactors; missile
parts.
ENERGY + CHEMICALS
Lithium metal powders to
improve battery performance;
cost reduction and safety
enhancement through use of
new anode and cathode
materials; used in pipes, tanks,
and vessels; used in chemical
production.
MEDICAL
Surgical and medical
instruments such as dental
implants, pacemakers,
stents and replacements.
BROAD AND EVOLVING TARGET MARKETS
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LITHIUM: No end in sight to global demand
• Asian and European governments setting carbon emissions targets for automotive industry and
subsidizing Electric Vehicle (EV) technology.
• Marginal cost of conventional internal combustion continues to rise while cost of electrification
continues to decline; Electrified Vehicles should reach cost parity with Internal Combustion
vehicles by the early 2020’s.
• As costs of lithium-ion batteries continue to fall, penetration of the E-bike market in China on the
rise and expected to reach 100% by the end of 2020.
• Traditional market demand (non-EV, non-Energy Storage lithium-ion battery demand) continues
to grow fueled by emergence of lithium-ion batteries in computers, mobile phones and other
consumer electronics with an expected growth of 3.6% per annum over the next 10 years.
KEY DEMAND DRIVERS
Source: Deutsche Bank; Company data 2016.
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LITHIUM: The Lithium-Ion megafactories are coming!
Benchmark Mineral Intelligence 2015.
“Global production capacity
of lithium-ion batteries is
anticipated to more than
triple by 2020.”
TTX’s corporate development team in Nanjing is well positioned to foster negotiations with major players in the area.
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“Global lithium demand was 184k tonnes in 2015, with
battery demand increasing 45% YoY and accounting
for 40% of global lithium demand. Based on our
analysis, global lithium demand will increase to 534k
tonnes by 2025, with batteries accounting for 70% of
global demand.”
Deutsche Bank, United States Geological Society (USGS), 2016. Review of over 70
companies and 125 lithium projects to forecast how the supply market will respond.
LITHIUM: Global lithium supply needs to triple in 10 years
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Source: USGS, HSBC estimates 2016.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e
Lithiu
m c
arb
onate
price (
US
D p
er
ton)
LITHIUM: Strong price outlook for Lithium Carbonate
The global lithium market is measured in terms of lithium carbonate equivalent (LCE), given that lithium carbonate
is the most commonly traded product in the market. CS
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WHY PEGMATITES?
• Chinese hard-rock lithium plants (45% of global lithium supply) searching for lithium
feedstocks, operating at only 65% capacity in 2015.
• Quicker response time from mine development to production.
• Pegmatite deposits have low Mg/Li ratios allowing for a less costly transformation process.
• LCT-Pegmatites also contain Caesium and Tantalum, creating additional opportunity for
revenue stream.
LITHIUM: Market looks to pegmatite (hard rock) for supply response
Source: Deutsche Bank; Company data; USGS, 2016;
S&P Global (SNL), 2016. CS
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LITHIUM: Market looks to pegmatite deposits for supply response
Kesler,S.E., Gruber,P.W., Medina,P.A., Keoleian,G.A.,
Everson,M.P. and Wallington,T.J.(2012).
Buckell Lithium Project location close to major seaways,
facilitating export of minerals to major foreign ports
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MANONO-KITOTOLO REGIONBackground
• MK mine currently held by State 90%, and State Pension Fund 10% with
whom TTX is already JV partner on the Buckell Lithium Project.
• MK mine is a rare element LCT Pegmatite deposit defined as largest
pegmatitic deposit of spodumene, tin and tantalite ever worked (Bassot et
Mario 1989).
• MK previously owned by Geomines SA (Belgium mining company); operated
6 open pit mines from 1915-1988 on the MK pegmatites, producing 140,000-
185,000 t of tin & 4,500 t of coltan concentrate (Zairetain 1981).
• Remaining pegmatite deposit could exceed 500Mt to a depth of
125m.
• Metallurgical test work carried out by Belgium government (1956, 1976 and
1981) demonstrated that a 6% lithium concentrate was produced at average
tailings grade of 1.25% Li2O using combination of heavy media separation,
tables and spirals.
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• MK is classified as a LCT rare-element pegmatite, characterized by low
pressure and temperature, shallow level of emplacement,
mineral/alteration zonation and a geochemical signature of Li, Rb, Cs,
Be, Ga, Ta, Sn, Hf, B, F.
• Primarily lithium mineral is low-iron spodumene & minor lepidolite.
Spodumene crystals are extremely large allowing efficient recovery
using gravity-type processing.
MANONO-KITOTOLO REGIONGeology
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• MK largest known lithium-tin-tantalum deposit worldwide.
• Comprised of two large pegmatite swarms; Manono is traced for 5.2km
ranging up to 480m in width; Kitotolo extends 4.8km with similar
widths. Current deposits are open to depth: -40m at Kitotolo and -80m in
Manono.
• Further resource extensions exist along strike and laterally from the MK
pits.
• Several lithium resource estimates for the Manono-Kitotolo pegmatite
vary between 0.3 and 3.1 Mt of Li (Mohr, 2010); Highest estimate given
by Kessler (1978) : 3.3 Mt at 1.29 %Li2O.
• Using a 25% spodumene composition of the deposit at a 0.577% Li grade
reported by Iloko (1982), and volumes calculated by Matubila (2010),
TTX estimates confirm values given by Kessler (1978) and Mohr (2010).
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MANONO-KITOTOLO REGIONHistorical resource data
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BUCKELL LITHIUM PROJECTProximity to MK & infrastructure
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BUCKELL LITHIUM PROJECTProximity to MK & infrastructure
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• Phase 1: (Jan.2017 – Dec 2017)
•Scoping Study and Resource Definition
•Regional aerial geophysics
•Field reconnaissance and geological mapping
•Drilling of 3,000-5,000m
• Phase 2: (July 2017 – April 2018)
•Resource expansion drilling
•43-101 Compliant Reserve Report
•Definitive Feasibility Study
•Basic engineering for construction of Spodumene Concentrate Plant
• Phase 3: (May 2018 – April 2019)
•Construction of Spodumene Concentrate Plant in Manono
•Studies for Lithium Products Plant (LiOH & Li2CO3)
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BUCKELL LITHIUM PROJECTFast-track timeline
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• Agreements with reputable and well-established sub-contractors
through joint-venture with subsidiary United Materials Congo SARL
(“UMC/UC”).
• Extracted Tantalum Pentoxide concentrate (Ta2O5) sold to off-take
clients in China where there is strong demand.
• Expected production of Ta2O5 in 2018 as by product from Buckell
Lithium Project.
• All properties located in the province of Tanganyika, friendly mining
jurisdiction, close to infrastructure and transport.
• Classified as non-conflict material as Tantalex meets necessary
requirements of Electronic Industry Citizenship Coalition (EICC).
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TANTALUM JOINT-VENTURES
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FAVOURABLE DEMAND OUTLOOK
• Overall demand for tantalum is
expected to grow at 4.7% per annum to
2020.
• Supperalloys market will have the
highest rate of growth due to positive
outlook of commercial aerospace
industry.
• Above-average growth in sputtering
targets, tantalum chemicals and
tantalum mill products (wide range of
final applications).
• Capacitators are currently still largest
market for tantalum.
VARIABLES IMPACTING SUPPLY
• Demand from high-tech end users.
• Closing of Wodgina, Kenticha, Tanco
and Marropino Mines.
• Lack of viable new development projects.
• SEC ruling and other voluntary and legislative
requirements to use conflict-free tantalum.
VARIABLES FAVOURABLE TO PRICING
• Not openly traded on exchange.
• Confidential contracts between buyers and sellers.
• Conflict-free tantalum sells at a significant premium.
• Conflict-free material is in higher demand and sold
via long-term contracts and not significantly affected
by current market volatility.
Source: Roskill, 2016.
TANTALUM: Future outlook
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LeadershipManagement
Dave B. GAGNON Chairman & CEO
Kyle APPLEBY CFO
Sylvain GIFFARD Senior VP
Eric ALLARD VP, Operations
Laetitia FIERE VP, Corporate Affairs/Head CSR
Samuel BOUDAUX VP, Business Development
Benson HAN Senior VP, China
Alan DEVANEY Vice President Global Metals Markets
Eric KASEKA Operations Director
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LeadershipBoard of Directors
Michel LEBEUF Corporate Secretary, Director
Partner of Dunton Rainville LLP, Mr. Lebeuf has an expertise in securities, particularly
in the areas of natural resources, institutional and corporate financing, and public and
private mergers and acquisitions.
Luisa MORENO Director
Co-founder and Managing Partner of Tahuti Global, a successful Global Advisory and
Consulting firm founded in 2014, which provides financial and consulting services to
government institutions, investment firms, and listed and private companies in the
Mineral Resource Sector.
Gary PEARSE QP & Senior Technical Advisor
One of the world’s notable experts in lithium rare earths and other high tech minerals.
He is an engineer, economic geologist, metallurgist and mineral economist with over
40 years’ experience including geological survey work in Canada and Nigeria and
exploration and development in North America and Africa.
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Share Structure Shares outstanding
103,455,996
Options
4,250,000
Warrants
30,662,000
Fully diluted
138,367,996
As at January 15, 2017
Closing price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.17
52 week low/high . . . . . . . . . . . . . . . $0.02-$0.18
Insider holdings . . . . . . . . . . . . . . . . . . . . . . . . . . 30%
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Tantalex Resource Corporation:
333 Bay Street, Suite 630
Toronto, ON
Canada M5H 2R2
+14379924114
Postal address:
Toronto, ON
Canada M5C 2K3
PO Box 964
Investor Relations:
Christina Lalli
Manager, Investor Relations
General Inquiries:
Sales:
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Contact Us
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