Tactical Resources Corp. · OTC:USREF
Tactical Resources — SPAC Merger (November 2024)
34 slides from Tactical Resources's SPAC merger presentation, Nov 13, 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024
Slide 2: Disclaimer
Disclaimer 2 This investor presentation (together with oral statements made herewith, this "Presentation") is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the "Business Combination") among Plum Acquisit
Slide 3: Disclaimer
Disclaimer 3 The foregoing list is not exhaustive, and new risks may emerge from time to time . If any of these risks materialize or the Parties’ assumptions prove incorrect, actual results could differ materially from the results implied by these forward - looking statements . Many factors could ca
Slide 4: Today's Presenters
Today’s Presenters 4 Jeet Basi President & Executive Chairman Tactical Resources Ranjeet Sundher Chief Executive Officer & Director Tactical Resources Steven Handwerker Chief Financial Officer Plum Acquisition Corp. III Kanishka Roy Chief Executive Officer Plum Acquisition Corp. III Select Company E
Slide 5: Key Investment Highlights
Key Investment Highlights 5 Rare Earth Elements (REEs) Mining Asset and Company Strong position with geographic focus in the U.S. Significant Geo - Political and Supply Implications Enabling reduced dependence on China for REEs, critically needed for semiconductors, electric vehicles, advanced robot
Slide 6: Tactical Resources Overview
Tactical Resources Overview Introduction Video
Slide 7: Geopolitical Elements Underscore the Importance of REEs
Inflation Reduction Act (5) creates specific incentives and allocations for domestic production of critical elements 2022 American Energy Innovation Act (4) includes “responsible production of domestic resources to meet critical mineral needs” 2020 President Biden declared REEs production “essential
Slide 8: Significant Global Demand for Rare Earth Elements
Significant Global Demand for Rare Earth Elements 8 The race to produce rare earth elements January 5, 2024 DOD Looks to Establish 'Mine - to - Magnet' Supply Chain for Rare Earth Materials March 11, 2024 Beijing says state owns China's rare earth metals July 1, 2024 The U.S. Wants a Rare - Earths S
Slide 9: Rare Earth Elements Power Our Modern Economy
Rare Earth Elements Power Our Modern Economy 9 • Rare Earth Elements are a group of 17 elements that are critical for modern technologies • China produces ~70% of global Rare Earth Elements causing North America to have a vulnerability and over - reliance on this supply chain (1) • Canada and U.S. h
Slide 10: Tactical's Key Strategic Corporate Pillars
Tactical’s Key Strategic Corporate Pillars 10 Unlocking Clean - Tech REEs Solutions is critical for securing North America’s Strategic Future U.S. Focused Texas based projects for increased American supply Clean Processing Clean - tech driven with a focus on reducing carbon footprint and water consu
Slide 11: Texas Based & 100% North American Rare Earth Elements
Texas Based & 100% North American Rare Earth Elements 11 (1) Railroad Commission of Texas Data 2018 - 2024.. Mining Friendly Texas Over 50,000 Permits Granted in the Last 6 Years (1) Neighboring Round Top Project 2 Miles Away from Peak Project Extensive Infrastructure Easy Highway and Rail Line Acce
Slide 12: Peak Project - Sierra Blanca Quarry Overview
Peak Project - Sierra Blanca Quarry Overview 12 Mining Loading Hauling 1 ƒ Crush 2 ƒ Crush 2” Screen ¾” Screen Coarse Stockpile oversize undersize Tactical’s Processing Plant Fines Stockpile Coarse Aggregate Sold as Railway Ballast Revenue Stream for SBQ Long - term Storage Zero - Value for SBQ Feed
Slide 13: Peak Project – Clean Processing Potential
Peak Project – Clean Processing Potential 13 Initial Extraction Results Process Comparison • Three composite samples, 30 - & 60 - micron grind size targets • Assessment of direct leach amenability and maximum extraction potential • Initial Total Rare Earth Element (TREE) plus Yttrium (Y) Extraction
Slide 14: Future Workflow In Progress
Future Workflow In Progress Project Timeline Expectations 14 Complete Legal due diligence and commercial discussions • Preliminary quarry tailings offtake • Verification • Sampling • Survey of materials Initiated Technical Workplan • Engage metallurgical consultant & lab • Amended tailings offtake a
Slide 15: Transaction & Valuation Overview
Transaction & Valuation Overview
Slide 16: Illustrative Transaction Overview
Illustrative Transaction Overview Transaction Highlights Deal Structure • Tactical Resources shareholders rolling 100% of their equity and are expected to have a pro - forma equity ownership of 80.5% Valuation • Transaction implies $602M pro - forma fully - diluted enterprise value – Tactical Resour
Slide 17: Select Comparables – REE Assets
$602 $4,953 $3,077 $1,697 $645 $494 $237 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Source: Bloomberg Data as of 11/05/2024. Select Comparables – REE Assets 17 Market Capitalization ($M) Developers Producers
Slide 18: Valuation Benchmarking – Comparable Assets
㾐 㾐 㾐 Strong Jurisdiction 㾐 X 㾐 Simple Metallurgy 㾐 X 㾐 Simple Geology X 㾐 㾐 Existing Infrastructure X 㾐 㾐 Initial Operating Permits X 㾐 㾐 Feedstock Supply X 㾐 㾐 Active Mining Site Valuation Benchmarking – Comparable Assets 18 Source: Pitchbook Data as of 8/21/2024..
Slide 19: Tactical Resources Highlights
Tactical Resources Highlights 19 68 Miles Southeast of El Paso, Texas Company Background Location Overview Peak Project Vancouver, Canada Headquarters 2021 Signed Agreement on Peak Project 2022 Completed Peak NI 43 - 101 / SK - 1300 Technical Report Live Mining Operations Sierra Blanca Quarry Site P
Slide 20: Key Takeaways
Key Takeaways 20 Rare Earth Elements (REEs) Mining Asset and Company Strong position with geographic focus in the U.S. Significant Geo - Political and Supply Implications Enabling reduced dependence on China for REEs, critically needed for semiconductors, electric vehicles, advanced robotics, and mo
Slide 21: Q & A Session Thank You
Q & A Session Thank You
Slide 22: Appendix
Appendix
Slide 23: Experienced Management Team
Experienced Management Team 23 Kuljit (Jeet) Basi President & Executive Chairman Alnesh Mohan Chief Financial Officer Ranjeet Sundher Chief Executive Officer & Director • Extensive background with 25+ years of experience successfully developing private and public companies in the technology, mining,
Slide 24: Rare Earth Elements Overview
Rare Earth Elements Overview 24 Compositio n End Markets (3) Cerium (Ce) Lanthanum (La) Neodymium (Nd) Praseodymium (Pr) Samarium (Sm) Europium (Eu) • Light rare earths represent the lanthanides, the rare earth elements with the chemical group with the lowest atomic numbers ‒ Used in cell phones, el
Slide 25: U.S. Based Operations Create Significant Advantages
U.S. Based Operations Create Significant Advantages 25 More Secure, Independent Supply Chains Key Benefits of Reduced Dependence on China’s REEs Supply (4) Insulation From Foreign Export Controls Domestic Satisfaction of Mineral Demand for Key U.S. Sectors Diminished Chinese Pricing Power (1) U.S. D
Slide 26: Sierra Blanca Site Overview
Sierra Blanca Site Overview 26 • Agreement with the Sierra Blanca Quarry (SBQ) that allows, for a fee, access to and a right of first purchase option to tailings material potentially enriched with REEs on the Sierra Blanca property, in addition to acquisition optionality of the broader all - encompa
Slide 27: Sierra Blanca Quarry Overview (Cont.)
Sierra Blanca Quarry Overview (Cont.) 27 Existing Fines Stockpiles Fines from Ongoing Active - Cut Operations Entire SBQ Operation & Mining Lease Note: For illustrative purposes only; actual boundaries may vary. Disciplined 3 - tiered purchase agreement has potential to deliver progressive value
Slide 28: Peak Project Overview
• Located 68 miles southeast of El Paso, Texas and two miles southeast of the Round Top Rare Earth Elements project, operated by USA Rare Earth • Found within the active Sierra Blanca Quarry (SBQ) • Agreement in place with SBQ - Can extract from already mined tailings - Exclusive option to purchase
Slide 29: Sampling Results
Sampling Results 29 Note: For illustrative purposes only; actual boundaries may vary. The Qualified Person as defined by NI 43 - 101 is Norman Chow, P. Eng., a consultant for Tactical Resources who has reviewed and approved, the technical metallurgical information in this presentation. The Qualified
Slide 30: Key Takeaways from Initial Testing
Key Takeaways from Initial Testing 30 • Enriched quantities of almost all REEs detected in every sample • Extremely low sample to sample Rare Earth Elements grade variability • Highly homogenous mineralization and metal distribution • Low Thorium and Uranium content • Qualified Person (QP) verified
Slide 31: Initial Property Work Plan and Integrated Technical Studies
Sample Characterization REEs Hosting and Deportment Bench - Scale Leach Testing Fine Particle REEs and Li Extraction Bulk - Scale Leach Testing Coarse Particle REEs and Li Extraction Permeability Testing Hydraulic Conductivity and Geotechnical Desktop Benchmarking and Scoping Study Potential Key Val
Slide 32: Valuation Benchmarking - EV/Resource
Valuation Benchmarking - EV/Resource 32 WA1 Resources has not released a Rare Earth Element Resource Estimate Source: Company presentations and reports, Bloomberg as of 11/05/2024. Developers Producers $1,341 $1,077 $668 $538 $140 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $753 Average EV (U
Slide 33: Risk Factors
Risk Factors This section summarizes certain of the risks that could affect the operations of the Company, Pubco or Tactical and is not exhaustive. The risks described below and the more extensive lists of risk factors set forth in the sections entitled “Risk Factors” in the Company’s Annual Report
Slide 34: Risk Factors
Risk Factors • Tactical’s business may be adversely affected if it is unable to secure additional funds to finance future exploration and development work. • Tactical may be adversely affected by fluctuations in demand for, and prices of, rare earth elements (“REEs”). • The success of Tactical’s bus