Arc Mineral Royalties Ltd. · TSXV:ARO
Arc Mineral Royalties — Stria Lithium — Investor Presentation (May 2014)
32 slides from Arc Mineral Royalties's investor presentation, May 2014
Slide 1: Corporate Presentation 2014-Q2
TSX-V: SRA Corporate Presentation 2014-Q2 A NEW SOURCE, A NEW PROCESS FOR GREEN TECHNOLOGY LITHIUM
Slide 2: Disclaimer
Disclaimer This presentation contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identifi
Slide 3: Stria Lithium Inc.
Stria Lithium Inc. • On May 5, 2014 Stria Capital shareholders approved a proposal to change the company’s name to Stria Lithium Inc. to more accurately reflect and promote the company’s core activities • Stria is the sole owner of the Pontax spodumene lithium property in Northern Quebec, and the Wi
Slide 4: Overview
Overview The Facts 1. Lithium • Facts • Applications • Lithium is the green mineral of the future 2. Market • Demand • Lithium batteries comprise 30% of the market • Supply • But hold the largest growth potential • Prices • No substitute for lithium in portable devices • Production • Historically co
Slide 5: Industrial Applications
Industrial Applications 1. Chemical Application • Energy storage (rechargeable, grid storage) • Lubricant grease • Aluminium smelting, polymers Discovered in 1817 by • Air treatment Swiss chemist, Johan August Arfvedson • Medical applications 2. Technical Application (low impurities) Pharmaceuticals
Slide 6: Demand
Demand Direct relationship with GDP Demand • Between 2000 and 2012 Li consumption 5.6% by end user • China (30%) is the largest consumer of Li, followed by EU, Japan GDP • Li batteries are the fastest growing use: 65% GLC1 by 2025 • Grid Storage is taking a growing place Lithium consumption • New
Slide 7: Demand By Compound
Demand By Compound Li demand - Forecast Li-Chloride LCE (Kt) Butil-Li Other 600 5% 5% 3% Li Metal 500 Li Batteries 5% 400 Li Carbonate 300 Li Concentrate 48% • Store 3x more energy 14% 200 • Environmentally friendly 100 Li • Consumption of LCE2 in 2013: 55,000t Hydroxide 0 20% Li demand - Actual 201
Slide 8: Supply
Supply • Global Li resources: 30M t (not all viable) • Global Li reserves: ~13M t Source: Web & Euro Pacific Canada Corporate Presentation – May, 2014 8
Slide 9: Supply
2005 2015 (forecast) Supply • 4 Major Companies Source: Euro Pacific Canada 80% world’s production >$1G/year New producers entering Other Tianqi/Talison 20% 32% FMC 9% Global Li Supply Forecast Rockwood SQM 20% 24% Source: Maxwell 2013 Corporate Presentation – May, 2014 9
Slide 10: Supply
Supply The battery industry requires higher purities at lower costs Lithium Battery Grade and Price Industrial Technical Battery EV Plus Future Grade Grade Grade EV Grade Grade demand Purity of Li2CO3 <99.0% 99.0% 99.5% 99.9% 99.99% 99.9999% Price (US$/t) 6,500 8,500 15,500 Battery Market % 75% 15%
Slide 11: Production – 2 major sources
Production – 2 major sources 1 Km Greenbushes operation, Australia Salar de Atacama, Chile Corporate Presentation – May, 2014 11
Slide 12: Production
Production Brines Hard Rock • Large global suppliers: ~ 70% world’s Li • Most hard rock Li processing is from pegmatite production (2011 & 2012) ore bodies • Playas, Li-rich salt • Spodumene-rich pegmatites • Low grade (200 – 1,400 mg/l Li) • Higher grades Large Volume Smaller Volume Large Footprint
Slide 13: Why Stria Lithium?
Why Stria Lithium? New TSX-V exploration company listed since December 2013 Focused on the GREEN Energy Revolution New LITHIUM Source End-User approach, New PROCESSES ≠ Business Model Strategic ALLIANCES Corporate Presentation – May, 2014 13
Slide 14: Strategic Alliances
Strategic Alliances Grafoid – Hydro-Quebec JV P MLFP Battery Li • November 2012, Grafoid entered into a 50/50% long-term Gp Ni agreement with Hydro-Quebec’s research institute IREQ (~4x) to develop a quick-charge, long-life MesoGraf™ lithium Mn iron phosphate (MLFP) battery for the consumer Co elect
Slide 15: 2 Exploration Properties
2 Exploration Properties Pontax-Lithium (Québec) and Looking for Acquisitions - Spodumene - Willcox (Arizona) - Brine - Corporate Presentation – May, 2014 15
Slide 16: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) • Acquired in 2013, 100% ownership • No Royalties attached to the property • The project currently encompasses a contiguous group of 70 map designated cells, for an area of 3,718.84 hectares. 7.5 km 8.2 km Corporate Presentation – May, 2014 16
Slide 17: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) • A total of 198.28 m of channel samples were cut on the surface (2009 & 2012), plus • 864 m of drill core were recovered from 7 holes (2009) Trenching program 2009 Drill program Best Assays (2009) Drill program (2009) Corporate Presentation – May, 2014 17
Slide 18: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) 1.38/ 12 1.95 / 5 1.46 / 3 1.10 / 13 1.47 / 6 0.91 / 19 1.31 / 9 0.55/ 12 0.97/ 21 Exploration Work Summary 2.34 / 2 (2009-2012) 1.67 / 7m Over 10m width ddh best intersects (% Li2O /m): 0.91/ 19 3.00 / 4 Surface trenching best intersects (% Li2O /m): 0 50 100 1
Slide 19: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) Pontax-Lithium, looking west (2011) Aerial view looking NE (2011) Metabasalts Pegmatite dike Corporate Presentation – May, 2014 19
Slide 20: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) 2014-15 1. (Done) Sampling Program (5 samples of 20kg each) 2. (Q2-14) Ongoing work in KIC1: a) Mineralogical Study and b) Metallurgical testing program: • Phase I (Q2-14): Validation COMPLETED • Phase II (Q3+Q4-14): Pilot Plant testing • (Q3-14): Follow-up expl
Slide 21: 2. Willcox (Arizona)
2. Willcox (Arizona) Willcox Playa • 100% ownership • 61 lode mining claims located in Cochise County, Arizona • Known for its lithium brine content since 1978 Corporate Presentation – May, 2014 21
Slide 22: 2. Willcox (Arizona)
2. Willcox (Arizona) Li (ppm/m) 505 / 6 Li (mg/l) 540 / 6 • Pleistocene Epoch lake within the Bassin and 650 / 2 7 stratigraphic Range province intervals 580 / 1 • Surrounded mountain ranges = large-scale 505 / 3 > 500 ppm Li faulting, large erosion and filling of the valley 555 / 2 within rock samp
Slide 23: 2. Willcox (Arizona)
2. Willcox (Arizona) 2014 - 15 1. Q2: Validate USGS hole: 2. Q2-3: Test Proprietary process for recovering Li from solvent (underground water) 3. Q3-4: Subsequent Exploration program by Phases and Next Step Decisions Source: web Corporate Presentation – May, 2014 23
Slide 24: Proprietary Processes – Hard Rock
2 Proprietary Processes 1. « Hard Rock » (spodumene) Spodumene Crushing & Proprietary High Purity Other Li Ore Grinding Process Li-Metal Compounds • Li-Chloride, Novel Process: • Li-Carbonate or • More efficient, • Li-Hydroxide • Fewer controls, and • Less chemistry • By-Products: – White cement (pu
Slide 25: Proprietary Processes – Brine
2 Proprietary Processes 2. « Brine » type Pumping & Proprietary High Purity Other Li Brine Deposit Membrane Process Li-Metal Compounds • Li-Chloride, Novel Process using : • Li-Carbonate or • Solvent extraction, • Li-Hydroxide • Ion exchange, and • Membrane technologies Solvent exchange Pilot Plant
Slide 26: Process – Hard Rock
Process – Hard Rock • Results in Li-Metal but modified, can produce high purity: – Li-Chloride, – Li-Carbonate or – Li-Hydroxide • By-Products: – White cement (pure Aluminum Silicate, cement industry) – Ferric-Chloride (water treatment purification) Source: EuroPacific 2013 Corporate Presentation –
Slide 27: Process – Brine Type
Process – «Brine Type» Existing Technology • Large evaporation ponds • Long “fill” time • Large footprint Source: Web Corporate Presentation – May, 2014 27
Slide 28: Our Team, our Strength
Our Team, our Strength Key Management • Gary Economo, CEO & Co-Founder Over 30 years high tech experience, including as President and CEO of SPI technologies selling graphite products • Julien Davy, President & COO - Qualified Person under NI 43-101 Geologist and MBA with 18 years experience in mid
Slide 29: Our Team, our Strength
Our Team, our Strength Board of Directors • Jeffrey York, Chairman of the Board Former President and COO of Giant Tiger stores, currently CEO of Farm Boy stores. • Gary Economo, CEO & Director • Marc-André Bernier, M.Sc., P.Geo., Director and technical adviser Geologist with 30 years of experience,
Slide 30: Corporate Structure
Corporate Structure Stria Capital Inc. 912-130 Albert Street, Ottawa, Ontario, K1P 5G4 Symbol : SRA Exchange : TSX-V Shares issued and outstanding : 15,971,123 Major Shareholder Ownership Warrants outstanding : 0 Management & Directors 28.4 % Options outstanding : 1,563,300 Funds & Institutions 68.1
Slide 31: Conclusion
Conclusion • Stria Lithium is a vertically integrated lithium company building a competitive market advantage • Battery sector will drive growth the Lithium market • Green Technology • New Source, lower environmental impact • New Process with fewer steps Gary Economo – CEO & Co-Founder Julien Davy –
Slide 32: Appendix – conversion sheet
Appendix – conversion sheet • Li volume can be presented in different compounds: Table 1: Conversion factors for Lithium compounds (source: Euro Pacific Canada) – Lithium carbonate (Li2CO3), To To To To To To To – Lithium Hydroxide (LiOH), Convert Li LiOH LiOH-H2O Li2O Li2CO3 LiAlSi2O6 – Lithium Met