Axel REE Ltd. · ASX:AXL
Axel REE — IPO Roadshow (May 2024)
32 slides from Axel REE's IPO roadshow presentation, May 2024
Slide 1: Rare Earth Elements Exploration Brazil - IPO Presentation
Rare Earth Elements Exploration Brazil INITIAL PUBLIC OFFERING PRESENTATION May 2024 Axel REE Limited 1
Slide 2: Disclaimers
Disclaimers These presentation materials and any accompanying verbal presentation (together, the Presentation Materials) have been or fairness of the information, opinions, forecasts, reports, estimates and conclusions contained in this document. No Limited prepared by Axel REE Limited (Company) as
Slide 3: Overview of Axel REE
Overview of Axel REE Axel REE is seeking an IPO in 2024 to fast-track Caladão to a maiden Resource and developing the Caldas Project with systematic drilling Axel REE Limited (Axel) is the 100% owner of two highly Potential for Multiple prospective (but underexplored) landholdings in Brazil with hig
Slide 4: Company Board & Management
Company Board & Management The Axel REE Board has a track record for pioneering resource discoveries, capital markets and resource project development Board In Country Team Paul Dickson Non-Executive Chairman • Finance and corporate advisory professional with more than 30 years’ experience in the fi
Slide 5: Milestones
Milestones Built a substantial REE Portfolio 2022 • Portfolio of over 100,000 hectares of known REE-prospective project areas across 3 states in Brazil Data Compiled, Analysed, REE Projects Identified 2022/2023 • Comprehensive review and analysis of available geological, geophysical, geochemical, an
Slide 6: Project 1: Caladão
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Slide 7: 1. Caladão Project
1. Caladão Project First REE district-scale discovery in a new province in the ‘Lithium Valley’, Minas Gerais New world class potential REE district • New discovery zone • Big system covering ~400km² project area • Four licences drilled (Area A & B) representing ~20% of Caladão project • Open in all
Slide 8: Caladão Project: Auger Drill Program – Area B
1. Caladão Project Auger Drill Program – Area B 13km Auger Drill Program over anomalous TREO zone Interval TREO NdPr DyTb MREO MREO Hole (M) (ppm) (ppm) (ppm) (ppm) (%) CLD-AUG-029 10 2,872 972 40 1,012 35% CLD-AUG-032 7 1,613 270 14 284 18% CLD-AUG-033 10 1,793 285 13 298 17% CLD-AUG-037 9 1,575 41
Slide 9: Caladão Project: Auger Drill Cross Sections
1. Caladão Project: Auger Drill Cross Sections Open OPEN Open Open Open Open 2023 Auger drill program average 12m depth. Depth potential to granite could be >50 meters CLD-AUG-025 12 – 14 m 7,612 ppm TREO Deposition model of South China ionic clay 27.5% MREO cross section with superposition of Calad
Slide 10: Caladão Project
1. Caladão Project Axel has discovered REE mineralisation within large circular anomalies Right: 13km mineralised strike trend (out of 25km) • New discovery zone • Area B (right) strong circular thorium radiometric anomaly indicates large potential intrusive structure of ~18km diameter 18km • Geoche
Slide 11: Project 2: Caldas
Project 2: Caldas
Slide 12: Caldas Project: South Minas Gerais
2. Caldas Project : South Minas Gerais In 2023, Meteoric Resources NL (ASX:MEI) identified the world’s highest grade ionic adsorption clay REE project. This Tier 1 discovery is adjacent to some of Axel REE’s Caldas Project tenements The Poços De Caldas Alkaline Complex is homogenously enriched with
Slide 13: Caldas Project: South Minas Gerais
2. Caldas Project: South Minas Gerais Axel’s Caldas Project presents as an underexplored REE asset with significant potential which will be further realized by additional drilling using funds from the IPO Underfunded, underexplored project with significant potential • 13 out of 28 licences tested (s
Slide 14: Other Projects
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Slide 15: 3. Itiquira Project
3. Itiquira Project Potential company-making project – right geological setting – large geophysical signature, size and structure • Distinctive circular magnetic and gravity anomalies (below) resemble other recognized alkaline-carbonatite complexes known to be associated with REE and other mineraliz
Slide 16: 4. Corrente Project
4. Corrente Project • Situated approximately 20km southeast of the Corrente Municipality in the Piaui State of the northeast region of Brazil. • Identified lateritic soil cover with residual clay-sandy and clay-silty soil covers, which may be totally or partially lateritized. • These soils exhibit d
Slide 17: Rare Earths Market – Advantages of Ionic Clays
Rare Earths Market – Advantages of Ionic Clays Ionic clay-hosted deposits are rich in heavy rare earth elements (HREE) and typically incur lower capital and operating expenditure when compared to hard rock-hosted deposits Ionic Clay Hosted Deposits Hard Rock Hosted Deposits Examples • Hard material
Slide 18: Offer Details
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Slide 19: Corporate Snapshot
Corporate Snapshot Pre-IPO Capital Structure Post-IPO Capital Structure Shares on Issue 108,035,612 Shares on Issue (escrowed) 2 100,035,612 100% Unlisted Options on Issue 3,500,000 Shares on Issue (not escrowed) 8,000,000 Performance Rights on Issue 6,150,000 IPO Shares Offer @ $0.20 75,000,000 Axe
Slide 20: Use of Proceeds
Use of Proceeds Use of Proceeds Multiple Company-Making Projects Exploration Expenditure $11.2M Axel REE will utilise funds from the IPO to aggressively complete drilling programs at Costs of the Offer $1.3M priority drill targets to warrant progressing to determine a maiden Mineral Resource Estimat
Slide 21: Key Offer Dates
Key Offer Dates It is anticipated that Axel REE will list on the ASX in July Indicative Timetable1 DATE1 Institutional Offer Bookbuild opens 10:00am Monday, 20 May 2024 IPO Bookbuild Closes 5:00pm Monday, 20 May 2024 Institutional Confirmation Letters due 12:00pm Tuesday, 21 May 2024 Lodgement of Pr
Slide 22: Comparable Companies
Comparable Companies ASX-listed comparables show that Brazilian Rare Earth explorers trade at a premium – relatively lower capital requirement and lower operating costs to process (due to their ionic nature) 665 368 109 63 36.6 17 9 Market capitalisation (A$m) Brazil (without Resource) Brazil (with
Slide 23: Investment Highlights
Investment Highlights Potential for Multiple Axel REE Limited (Axel) is the 100% owner of two highly prospective (but underexplored) landholdings in Brazil with high-grade REE World-Class Deposits mineralisation already identified Established Jurisdiction Axel’s projects are located in established m
Slide 24: Appendices
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Slide 25: Appendix A: Capital Structure
Appendix A: Capital Structure Tightly held capital structure, with significant ‘skin in the game’ from Board and Management Capital Structure Shareholder Shares % Board and Management 63.3M 34.7% Board and Management Professional and Sophisticated Investors 36.5M 20.0% 35% 41% Professional and Pre-I
Slide 26: Portfolio Overview
Portfolio Overview 4 key project areas, >100,000Ha (1,000km²) portfolio – in the right locations, surrounded by major rare earth discoveries 1. CALADÃO PROJECT (40,000Ha) Projects distributed over the region known as the Lithium Valley. 25km of mineralised REE strike with follow-up drill programs pl
Slide 27: Why Brazil? Why Rare Earths?
Why Brazil? Why Rare Earths? In the right location, in the right commodities, with compelling REE fundamentals REE Investment Outside of China Brazil - Tier 1 Mining Jurisdiction Rare Earth Reserves (by %) • China is currently the biggest rare earths • Well-developed mining jurisdiction with Brazil,
Slide 28: Appendix B: Key Risks
Appendix B: Key Risks The prospects of the Company must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly in the mineral exploration sector, which has a high level of inherent uncertainty. Limited Hist
Slide 29: Appendix B: Key Risks
Appendix B: Key Risks The Tenements are at various stages of application and grant. Specifically, thirteen Tenements (twelve Axel Tenements and one REE Tenement) are currently under application, including some with competing applications from third parties. Specifically, a considerable proportion of
Slide 30: Appendix C: Foreign Selling Restrictions
Appendix C: Foreign Selling Restrictions This Presentation does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this Presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austra
Slide 31: Appendix C: Foreign Selling Restrictions
Appendix C: Foreign Selling Restrictions SINGAPORE This Presentation and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this Presentation and any other document or
Slide 32: Contact
CONTACT Fernando Tallarico – Managing Director fernando@axelreelimited.com.au Paul Dickson – Non-Executive Chairman pd@axelreelimited.com.au 32