Usa Rare Earth, Inc. · NASDAQ:USAR
Usa Rare Earth — SPAC Merger (August 2024)
24 slides from Usa Rare Earth's SPAC merger presentation, Aug 22, 2024
Slide 1: Well Positioned to Execute on Its Strategic Roadmap
1 Well Positioned to Execute on Its Strategic Roadmap USARE has an early mover advantage to become the first vertically integrated ex - China rare earth supply chain Production Lines in Roadmap 4 Combined Annualized Capacity in Tons P lanned by 2028 ~4,800 Oxide Purity from Pilot Plant Test Results
Slide 2: About This Presentation
2 STRICTLY PRIVATE AND CONFIDENTIAL About This Presentation This presentation and any accompanying materials (together with any oral statements made in connection herewith, this “Presen tat ion”) is provided for informational purposes only and has been prepared to assist interested parties in making
Slide 3: Forward-Looking Statements
3 STRICTLY PRIVATE AND CONFIDENTIAL These forward - looking statements are based upon estimates and assumptions that, while considered reasonable by IPXX, USARE and t heir respective managements, as the case may be, are inherently uncertain. These forward - looking statements are provided for illust
Slide 4: Participants in the Solicitation of Proxies
4 STRICTLY PRIVATE AND CONFIDENTIAL Participants in the Solicitation of Proxies IPXX and its directors and executive officers may be deemed participants in the solicitation of proxies from IPXX’s stockhold ers with respect to the Proposed Business Combination. A list of the names of those directors
Slide 5: Business Overview & Highlights
SECTION - STRICTLY PRIVATE AND CONFIDENTIAL 01 Business Overview & Highlights DRAFT
Slide 6: Vision and Mission
VISION To be the leading Western supplier of high value rare earth magnets and critical minerals MISSION Establish a US rare earth magnet supply chain that supports the future state of energy, mobility, and national security
Slide 7: Investment Highlights - A Unique Value Creation Opportunity
STRICTLY PRIVATE AND CONFIDENTIAL 7 Investment Highlights - A Unique Value Creation Opportunity Create a Vertically Integrated US Permanent Magnet Supply Chain • Build a vertically integrated US rare earth magnet supply chain • Strategic national asset for critical US industries, pioneering domestic
Slide 8: Magnet Demand Driven by Core, Non-Cyclical Commercial and Defense Sectors
STRICTLY PRIVATE AND CONFIDENTIAL 22% 36% 57% 43% 8% 13% 13% 9% 2023 2035 Conventional Vehicles Wind Turbines Commercial Hardware and Electronics E Mobility Magnet Demand Driven by Core, Non - Cyclical Commercial and Defense Sectors Large US 2025 Defense Budget Will Drive Demand for Applications Tha
Slide 9: Strong Demand Creates an Imperative to Expand Supply Chain Capabilities
9 STRICTLY PRIVATE AND CONFIDENTIAL 0 20 40 60 80 USA Strong Demand Creates an Imperative to Expand Supply Chain Capabilities Existing Global Supply Chain Concentration in China (2) 90% of Global refined Rare Earth Minerals are controlled by China 92% Global downstream metal / magnet segment of valu
Slide 10: USARE Offers a Dynamic Solution to Domestic Rare Earth Production Challenges
STRICTLY PRIVATE AND CONFIDENTIAL USARE Offers a Dynamic Solution to Solving Key Domestic Rare Earth Production Challenges US Domestic Supply Chain Is Supported by Government Grants “It is vital that the US recognizes the importance of establishing a strong domestic supply chain for rare earth magne
Slide 11: USARE at a Glance
STRICTLY PRIVATE AND CONFIDENTIAL USARE at a Glance Company Overview Production and Supply Chain Highlights • Founded in 2019 • USARE is expected to become one of the only vertically integrated miner, processer and producer of rare earth and critical minerals outside of China • Developing capability
Slide 12: Vertically Integrated Magnet Manufacturing Capabilities
STRICTLY PRIVATE AND CONFIDENTIAL USARE’s Vertically Integrated Magnet Manufacturing Capabilities Mineral Resource Rare Earth Separation Facility Magnet Production Facility Established Capabilities Established Capabilities Established Capabilities x Round Top Deposit is an above - ground deposit con
Slide 13: Well Positioned to Execute on Its Strategic Roadmap
1 Well Positioned to Execute on Its Strategic Roadmap USARE has an early mover advantage to become the first vertically integrated ex - China rare earth supply chain Production Lines in Roadmap 4 Combined Annualized Capacity in Tons P lanned by 2028 ~4,800 Oxide Purity from Pilot Plant Test Results
Slide 14: USARE Stands Out as a Differentiated Asset
STRICTLY PRIVATE AND CONFIDENTIAL Rare Earth Metal Deposit Mineral Extraction Mineral Processing Magnet Manufacturing Product / Sales Political Support USARE Stands Out as a Differentiated Asset in an Industry Dominated by MP Materials and USARE DRAFT USARE is well positioned to be the premier domes
Slide 15: Transaction Overview
SECTION - STRICTLY PRIVATE AND CONFIDENTIAL 02 Transaction Overview DRAFT
Slide 16: Inflection Point Acquisition Corp. II Overview
16 STRICTLY PRIVATE AND CONFIDENTIAL Inflection Point Acquisition Corp. II (“IPXX”) Overview • IPXX is a special purpose acquisition company formed for the purpose of consummating a business combination transaction and currently has over $255M held in a trust account • The Proposed Business Combinat
Slide 17: Transaction Summary
17 STRICTLY PRIVATE AND CONFIDENTIAL Transaction Summary DRAFT (1): Assumes 100% USARE rollover of equity (2): Assumes 90% redemption by IPXX’s existing public shareholders (3): >$25 million of PIPE already committed by Inflection Point Asset Management and its affiliates. $75 million PIPE represe n
Slide 18: Appendix
SECTION - STRICTLY PRIVATE AND CONFIDENTIAL A Appendix DRAFT
Slide 19: Risk Factors
19 STRICTLY PRIVATE AND CONFIDENTIAL The risks presented below are non - exhaustive descriptions of certain of the general risks related to the business of USARE, IPXX , the Combined Company, and the Proposed Business Combination, and such list is not exhaustive. The list below has been prepared sol
Slide 20: Risk Factors: Business of USARE
20 STRICTLY PRIVATE AND CONFIDENTIAL • The production of critical and rare earth minerals and lithium products is a capital - intensive business that requires the comm itment of substantial resources; if we do not have sufficient capital or resources to provide for such production, it could negative
Slide 21: Risk Factors (Cont'd)
21 STRICTLY PRIVATE AND CONFIDENTIAL • We depend on key personnel for the success of our business. If we fail to retain our key personnel or if we fail to attract a d ditional qualified personnel, we may not be able to achieve our desired level of growth and our business could suffer. • Because of t
Slide 22: Risks Related to Intellectual Property and Technology
22 STRICTLY PRIVATE AND CONFIDENTIAL Risks Related to Intellectual Property and Technology • If we infringe, or are accused of infringing, the intellectual property rights of third parties, it may increase our costs or prevent us from being able to commercialize new products. • We may not be able to
Slide 23: Risk Factors: Business Combination
23 STRICTLY PRIVATE AND CONFIDENTIAL • IPXX cannot assure you that its due diligence review of USARE’s business has identified all material issues or risks associat e d with USARE, its business, or the industry in which it operates. Additional information may later arise in connection with the prepa
Slide 24: Risk Factors (Cont'd)
24 STRICTLY PRIVATE AND CONFIDENTIAL • After the completion of the Proposed Business Combination, the Combined Company may be at an increased risk of securities cla s s action litigation. • The Combined Company may be unable to obtain additional financing to fund its operations or growth. • There ca