Arc Mineral Royalties Ltd. · TSXV:ARO
Arc Mineral Royalties — Stria Lithium — Investor Presentation (July 2014)
32 slides from Arc Mineral Royalties's investor presentation, Jul 25, 2014
Slide 1: A New Source, A New Process for Green Technology Lithium
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: Overview
Overview The Facts 1. Lithium • Facts • Applications • Lithium is the green mineral of the future 2. Market • Demand • Lithium batteries comprise > 1/3 of the market • Supply • Hold the largest growth potential • Prices • No substitute for lithium in portable devices • Production • Historically cont
Slide 4: Industrial Applications
Industrial Applications 1. Chemical Application • Energy storage (rechargeable, grid storage) • Lubricant grease • Aluminium smelting, polymers Discovered in 1817 by Swiss chemist, • Air treatment Johan August Arfvedson • Medical applications Lubricating greases 2. Technical Application (low impurit
Slide 5: Demand
Demand • Li = Industrial mineral • Li consumption in relationship with GDP: 5.6% (from 2000 to 2012) By Compound - Actual 6.0% (only 2013) • China (30%) is the largest consumer of Li, Butil-Li Li-Chloride Other 5% followed by EU, Japan 5% 3% Li Metal • Li batteries are the fastest growing use: 5
Slide 6: Demand: EV Market Snapshot
Demand EV Market Snapshot Li Batteries New Plug-in Sales 12,500 Monthly Trend • Performance: Store 3x more energy • Environmentally friendly • Consumption of LCE2 in 2013: 55,000t 6,500 • By 2021: 240,000t – Rechargeables accounted for 27% GLC1 in 2012 – Estimated 65% by 2025 0 2011 2012 2013 2014 –
Slide 7: Supply
• Global Li resources: 30 Mt (not all viable) Supply • Global Li reserves: ~13 Mt Only limited number of resources can be economically extracted Source: Web & Euro Pacific Canada Corporate Presentation 7
Slide 8: Supply
Supply World picture - 4 Major Companies 80% world’s production Lithium Market at a new Maturity Stage Market size >$1G/year • Supplier strategies are changing • Efficiency Effort: – Rising Energy Costs; 2005 Actual – Water Sustainability; – Ore grades falling • New Mergers & Acquisitions • New tech
Slide 9: Supply: Lithium Battery Grade and Price
Supply Lithium Battery Grade and Price Industrial Technical Battery EV Plus Future Grade Grade Grade EV Grade Grade demand Purity of Li2CO3 <99.0% 99.0% 99.5% 99.9% 99.99% 99.9999% Price (US$/t) 6,500 8,500 15,500 Battery Market % 75% 15% 10% Source: modify from Seymor Pierce research and Fox-Davies
Slide 10: Prices
Prices • Prices move markets • Real Price = CPI1 adjusted • Since 2000, Li prices show increases, but has a general downward trend (CPI) 14,000 Inflation Adjusted Lithium Price 12,000 Real (USGS) Price First Li-Free Metal 10,000 Clayton Valley Salar de Atacama 8,000 Greenbushes Salar d
Slide 11: Production – 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 • Salars, Playas, Li-rich salt • Spodumene-rich pegmatites • Low grade (200 – 1,400 mg/l Li) • Higher grades (0.5 – 4 % Li2O) Large Volume Small
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 13
Slide 14: Strategic Alliances
Strategic Alliances P Li Examples Gp Ni (~4x) • Grafoid / Hydro-Quebec JV long-life MesoGraf™ Mn lithium iron phosphate (MLFP) battery for the Co consumer electronics and electric vehicle markets • Kingston Research & Development facilities (KIC) Several JV Partners Corporate Presentation 14
Slide 15: 2 Exploration Properties and Looking for Acquisitions
2 Exploration Properties Pontax-Lithium (Québec) and Looking for Acquisitions - Spodumene - Willcox (Arizona) - Brine - Corporate Presentation 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. Corporate Presentation 16
Slide 17: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) Before December 2013 work (former owners): • 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) Great crystal size and chemical structure Trenching program (2009) 2009 Drill
Slide 18: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) Before December 2013 work (former owners): 1.38/ 12 • A total of 198.28 m of channel samples were cut on the 1.95 / 5 surface (2009 & 2012), plus 1.46 / 3 1.10 / 13 • 864 m of drill core were recovered from 7 holes (2009) 1.47 / 6 0.91 / 19 1.31 / 9 0.55/ 12 0.9
Slide 19: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) Pontax-Lithium, looking west (2011) Up to 4 m Aerial view looking NE (2011) Metabasalts Pegmatite dike Corporate Presentation 19
Slide 20: 1. Pontax-Lithium (James Bay, Québec)
1. Pontax-Lithium (James Bay, Québec) 2014-15 1. Test metallurgical potential by: • Sampling (100kg) - DONE • Heavy Liquid Separation Tests – On going • Mineralogical Study – On going 2. Add resource potential by: • Field exploration (2014-Q3) 1 KIC: Kingston Innovation Center Abundant Spodumene in
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 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. Historical hole validation - DONE 2. Test Proprietary process for recovering Li from solvent (underground water) - on going 3. Subsequent Exploration program - 2014/Q3 Drill program (2014) Corporate Presentation 23
Slide 24: Proprietary Processes
2 Proprietary Processes 1. « Hard Rock » (spodumene) Stria’s Proprietary process Corporate Presentation 24
Slide 25: Proprietary Processes: Hard Rock (spodumene)
2 Proprietary Processes 1. « Hard Rock » (spodumene) Novel process that: More efficient, Fewer controls, and Less chemistry No Acid bake No precipitation circuits = diminish floor space Environmentally sustainable Impurities removed at the start Reducing costs By-Products: – White cement (pure Alumi
Slide 26: Proprietary Processes: Brine Type
2 Proprietary Processes 2. « Brine » type Novel Process using : • Solvent extraction and/or • Ion exchange and/or • Membrane technologies Process producing : • Li-Chloride, • Li-Carbonate or • Li-Hydroxide Corporate Presentation 26
Slide 27: Process – Brine Type
Process – «Brine Type» Existing Technology • Large evaporation ponds • Long “fill” time • Large footprint Stria’s Process Footprint Source: Web Corporate Presentation 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 Lithium Inc. 912-130 Albert Street, Ottawa, Ontario, K1P 5G4 Symbol : SRA Exchange : TSX-V Shares issued and outstanding : 16,1 M Major Shareholder Ownership Warrants outstanding : 0 Management & Directors 28 % Options outstanding : 1,5 M Institutions & Retails 68 % Shares
Slide 31: Conclusion
Conclusion • Stria Lithium is a vertically integrated lithium company building a competitive market advantage • Strategic Alliances within the Battery sector will drive growth the Lithium market • Green Technology • New Source, lower environmental impact • New Process with fewer steps Gary Economo –
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