Bradda Head Lithium (LSE:BHL) — AGM Proceedings 2022

0:00 Good morning, ladies and gentlemen, and welcome to the BRADDA HEAD LIMITED Annual General Meeting. Throughout this recorded meeting, attendees online will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab The company may not be in a position to answer every question it received during today's meeting. However, all questions will be reviewed with responses published on the investment company platform where it's appropriate to do so. I'd now like to hand over to my executive chairman, Ian Stalker. Good morning, sir. Good morning, and thank you.

0:32 And it's now 11:00, ladies and gentlemen. Welcome to the Annual General Meeting of your company. My name is Ian Stocker, and I will act as chairman for today's meeting for the purposes of the call unfold. Quorum necessary to constitute the assignment general meeting of the company is one member holding not less than two of the votes, and shareholders are entitled to vote present in person or by proxy. A requisite quorum is present. The notice convening the meeting has been in circulation for the required twenty one days, and as such, I therefore suggest that notice should be taken as right. Before I start the official proceedings, can you please note for those present in the room in particular that in the event of a fire alarm, please make your way to the nearest fire exit as signposted.

1:19 And could I also ask those of you who have not already done so to switch off your mobile phones and other communication devices to silent? Thank you. Today with me, sitting here in the Isle Of Man, I have the following, Charlie Fitzroy, the CEO, who will be giving a presentation later on this morning. I also have Denham Eek, who is our nonexecutive director. I have Alex. I have Ewan Jenkins also beside me, and I also have Piot and Katie who are our CFO and company secretary respectively. Apologies have been given from both Alex Barelli, although he is on the phone with us, and Jimmy Mellon. The format of the meeting today will be as follows. We'll have a presentation from Charlie, the CEO, who will provide a brief overview of the company's activities and outlooks.

2:09 There will be an opportunity for questions at the end of that period, following which we will then take each of the resolutions as they appear on the agenda and take the vote.

2:19 I trust that's clear, so I will now hand over to Charlie to give us a company presentation on where BRADDA is going and where it's got to in performance today. Thank you very much, Ian. This is a updated presentation which aligns with our website, which we released yesterday in the new brand of BRADDA HEAD going forward. I'm going to run through the presentation and as Ian said, highlight the operational activities from last year and what we plan for next year. All information contained in the presentation has been released to date already. BRADDA HEAD listed in July last year, we've had a very busy year since then.

3:05 We initially started our focus on our sedimentary assets in Arizona. We've, since then, been busy at all our assets. And recently this year, the most exciting thing is we've started at our pegmatite assets where we've had some initial results through recently, are very promising, and we're moving now towards aggressive stage of drilling with our double shifts going forward. Last year has been busy for sedimentary assets. We've increased our resources at our basin project. We've drilled a wiki up with initial results, which are now in the second stage process of conducting analysis and future planning above the drill programs. And all this is enabling us to push towards our 2023 goal of a PEA.

3:51 We received permission to drill at Base East Extension and Base North this year with a short year to be starting the drilling there. We've bought long air, which we've used previously. We've used their sonic drilling technology. Main reason for the sonic drilling is due to the the reduced water consumption compared to core drilling and also the impressive recovery we get from the sonic drilling and the and the speed of it.

4:23 On the same time as that, we've been busy pushing forward with our test work at our basin project. We started phase one last year, which was showing very impressive results, and we moved into phase two this year, which is a increased amount of material we are now processing through leach and cycloning, which, again, the results we plan to release later this year once received. All this is enabling us to move you towards the production of an end lithium product chemical, likely lithium hydroxide or carbon depending on which way the process technology takes us. And all that is gonna feed into the PEA, and that's the whole idea behind the increased resources of our basin project where we are now in the process of permitting our basin West and West extension. So that's overview of the basin asset and our paper type asset as we discussed earlier.

5:13 We are starting drilling there, and that is going more aggressively now. Our brine assets this year, we have since listing, we've conducted a shadow drill program on Eureka asset, and the results will be through later this year. We're also in the process of looking to drill at Wilson, and we are in the process of getting contractors to give us quotes for that. So we are having work underway in all three of our asset groups as we speak. Alongside this, we've got our new website which has been released, a new new presentation. I just wanna move through the slide deck now and highlight some of the operational stuff which I've just briefly touched upon. This is a slide which I know there's been a lot of requests to update, and I'm glad to put this now out there. You know, we have had a busy year as you can see by the amount of milestones we've hit, but we still have a lot of news for coming in the second half of the year going into 2020 The key things that are gonna come through for the rest of the year, which are catalysts for us are from exploration point of view and operational point of view. We have our drilling in San Domingo.

6:16 We have started there with our initial results out now and getting more results out towards the end of this year. Assays, like most of The US, are taking longer than we think to come back, so we will refute those through as soon as we get them. And we were drilling at base East Extension Base North. That'll feed into resource towards the end of the year, much likely early next year. And again, exploration drilling at Wilson and resource updates. All these these catalysts are feeding into the second half of this year. And again as well, something which we've just updated from yesterday is the TSXV listing, which we are firmly pushing ahead on, and we hope to have a firmer timeline to release the market in the coming weeks. So a lot to look forward to for the company for the second half year and going into 2023.

7:03 I was just gonna touch on ESG, is again something which BRADDA has been very keen on from the start, and it's something which we very much focus on as a company. We have got two key initiatives coming out this year and into 2023. One, which is combined with our new corporate website, is the community website. This is directed at our local stakeholders and local tribes in the area, and it'll help us to engage them, let keep them updated what we're doing from exploration activities. There'll be a committed hotline and also a email address which

7:38 anyone can contact us if they have any concerns or any comments for us on how we're doing things in the right way or wrong way. And that's something we're making sure is very open and clear for the local communities and stakeholders. We also have working with our local Arizonian environmental consultancy and water conservation initiatives. We are starting this first in our basin project area, which is this has been identified. The key concern in the in Arizona is water. So that's something which we hope to update the market on shortly.

8:12 Excuse me. And this slide again is just the overview slide of our our same major projects in Arizona. I'm not gonna label too much on that. I wanna focus on our basin project in San Domingo in the second half of the presentation. Basin is where we've had progressive and and impressive resource expansion early this year. This is where the programs are targeting for the second half of this year at base east extension and base in North.

8:55 So just to make sure I was aware, base lease extension and base in North. These are the two claim blocks we've committed recently, and they will join up to our claims and our resources at base lease extension. So we'll be encompassing a larger resource base across

9:10 the area where our claims sit. And all this is helping us feed into our PEA and the resource expansion. Again, we are targeting the milestones on our royalty, which we agreed last December whereby we increased our resources and our sedentary assets to 1,000,000 tons of LCE. We get $2,500,000 payment, and then when we increase our resources to two and a half million tons LCE, we get a further $3,000,000 payment. That's obviously at the forefront of our programs there, increasing our resources for that reason and also for the PEA going to next year. As mentioned earlier, we're also in the process

9:44 of permitting our base of West and west extension claims, which will our plan for drilling when we get those claims come through next year sometime. All this is going on the same time as our natural test work program, which will form into the PA, which we plan to start next year.

10:09 WikiUp, we had some results earlier this year. Our section twelve, thirteen, and Northwest sections of WikiUp. We are in process of working on a follow-up drill program from these results, and that will be communicated to the market once that program is firmed up.

10:27 San Domingo where we've had some recent results come through. The whole idea and the thesis behind San Domingo was that it was similar to others and pegmatite systems like the LIMITHIUM LIMITED's Cafe and Valley whereby we have a small pegmatite signature surface going down to deeper feeding systems at depth. Initial results, which is gonna jump to the next slide, you can see on the cross section on the bottom left now demonstrating the first hole, which is a fantastic result from this first hole showing two pegmatite intersections that are relatively shallow depth. There was a third one slightly deeper down. But this is demonstrating the presence of the and both of these intersections. We've identified that from X-ray diffraction. With Santo Domingo, the thesis was that we have these thin sections of surface and getting that deep into depth.

11:20 And this is what we are testing with this drill program. We have 30 holes planned for this drill program, 7,000 meters in total. Half the holes are a 150 meters depth, and the other half are 300 meters depth. And we will be putting results out to market when we receive them in suitable numbers and also when we get assays in suitable numbers too. San Domingo was mined back in the forties and fifties. There's been historic grade about 2.75% I two o. Mine there are about 750 tons. So there is historic mining, five of the known named paper sites. This led us to our initial exploration activities there. And the follow-up work, which we've done over the last year, the geophysics, the mapping, the channel sampling, the solar sampling, the three d mapping from SRK helped us out with. It's all helped form this drill program at San Domingo, and all those results have gone into what we see now. This first hole has been a positive first hole, and that that's been helped by everything we've done in the last year since listing. So all this has been very helpful and help us work towards developing the asset there.

12:24 As you'll see from this map here, this is our SRK results. The left hand map is demonstrating the increase in what SRK have identified. It's a high 190% increase in potential pegmatite at surface scene, which is what we now are planning to do is is ground truth in those pegmatites to understand more about them. And on the right hand side, you see here is more work SRK have done, which has helped us understand the extent of our pegmatites and mineralization. And what we've seen from that is it looks like the claim box we have are framing the pegmatite mineralization, and we've also increased our claim box by 75% to include areas which were not covered covered previously. So now we a very strong 23 kilometer square position in Arizona covering, it looks like, the whole pegmatite trend. And that's this program is starting at the north section of our pegmatites and moving down, and then we'll be drilling at the central section.

13:20 So very busy second half or year ahead with this program at San Domingo. The initial results are very promising. And Wilson and Eureka are our prime prospects up in Nevada. Eureka, we've done a shadow drill program earlier this year, we're waiting upon the assays, which we do shortly. And, Wilson, we have a two holes permitted there in the process of looking at drilling contractors for that program. So this is something which we'll keep the market updated upon. This is our exploration timeline for the next year, which details everything we've discussed so far and gives a good view of what we have. The key thing which I haven't mentioned to date is the funding status of BRADDA. We raised raised money earlier this year in April. We had a raise combined with the royalty last year and was the IPO in July 2021, which left us at with 14.5 sorry. $14,300,000 at the end of August this year in the bank with another 5,500,000 to come from resource expansion and royalty transactions. We're very well funded to do all our exploration activities.

14:25 We are funded to take the clay assets to early stage PEA. We're funded to drill pegmatites to understand more about the structures and also to drill brines. So we're in a fantastic position as a company and a very busy year since we listed, and we've got a lot of news coming this year. And all of this is gonna be also helped with the TSXV listing, is soon to be soon to happen. As you can see, we've got a very strong good ownership of the company by the board and management and very supportive shareholder base alongside of all the benefits of BRADDA, which are still maintained, geological risk. We have a spread risk from brines, clays, and pegmatites.

15:12 The brine assets sorry. Actually, clear asset has been developing well, and now we have some interesting and exciting results from this pegmatite. So we're going into the second half of the year in a fantastic position for the company. All the assets located in Arizona and Nevada. Management very much involved, 18% owned. Arizona brought some of those fantastic places to be developing mining projects from the Fraser Institute's mining survey. And these projects we are trying to develop with a low carbon footprint as much as possible. And that is where the company is targeting towards with all the programs that he's putting in place. It's what we're working towards from natural natural test work with basin. That's what we're working towards if we find something sizable at San Dimunro. From a geological point of view, we have a very interesting and unique asset base which puts us in a unique position.

16:03 And the TSXV listing has been enabled us to hit North American investors as well, which we've only had the opportunity with OTCQB listing in The US and having that TSX TSXV listing will help us do that. I know that was a short run through, but I wanted to keep it brief just to give a bit of bit of a quick overview of what we're up to for this next twelve months and also what we have been doing for the last year. I'd like to put it to the floor for any questions unless the chairman or anyone else would like to add anything. No. I think, Charlie, that was a suitable overview. Most people will pick up the two key areas for us. The Basin area where we have the lithium in place and the San Domingo area where we have the pegmatites. And the focus of our attention is building up the quantum of resources we have in each area. That will happen over the last quarter of this year. We hope and then early into next year. The other projects that we have just increase the optionality of the company, which is a good thing in the marketplace that we find ourselves in.

17:05 And I think just to remind everyone who's listening that the marketplace that we are in with lithium is a very, very accommodating market at this moment in time. There's significant growth seen in the demand that's been seen in the value of the lithium carbonate for sale. It's touched records as recently in the last few days. So we are delighted to be busy and delighted to be working in the areas we are. But let's, as you say, open the the floor for questions. If there are any, I'll take take them one at a time. If there's not, we'll move on to the rest of the agenda for today. So far, I've got a few questions coming through, mostly related around San Domingo. San Domingo, this is the first drill program we're doing there, and it's hitting the targets which we think have the most potential potential and that we've shown from first drill hole.

17:54 If we have the results we believe we're gonna have, then this second drill program will follow this. That's that's the key thing for San Diego. Charlie, could you read the question?

18:09 What do you expect the seven kilometer drill program at San Diego's cost in total? Can we expect larger 10 kilometer and drill program next year using only the current cash balance subject to continued promising results?

18:25 The program cost in total will be between 2 to $3.02 to 3,000,000 US. That's including assays. As I said previously, if we have a positive result from this first program, we will push on to a secondary program, which would likely be a large program. That will be next year. We have funds available for a secondary program, and we can we are mobile. We have funds set aside for the drilling programs that are prime prospects. As a company, we were committed to developing the most prospective assets. And if that seems to be something that we will focus on that in the near term rather than developing the right assets. So there is funds available for a follow-up program if we decide to do that.

19:12 I think, Charlie, that that would be to address it is, of course, the every exploration program is success driven. As we see the assays coming through, naturally, we'll reassess just how quickly we move on the drilling program. We've got access to drilling equipment. We've certainly got good weather in the area we're drilling in, so there's no restriction there. So for us, we see San Dimungo as a very encouraging environment. That first drill hole, we've seen the intersections that we've highlighted in the presentation. We've done the x-ray diffraction, as you mentioned. The assays will give us the next truth in the matter, but, yeah, that if it moves on, will be moved with pace in our opinion because everyone knows the situation with pegmatites is such that we could bring that to a production profile than probably any other assays in our current portfolio.

20:02 Yeah. And as a secondary question, can you give a quick comparison between the San Diego expected from geological work versus the actual assay cross section you received? How accurately did you predict the structure? Our geologists did predict we would get intersections at the depths we have done. It's very hard to give more of a a guidance than that because with the pegmatites, the work we've done, we expected the drill hole, which we drilled into get some good intersections and has done. We really need to finish off the program to help with the science potential there, and that's why we're doing what we're doing. So it is that is a hard question to ask, but we are prompt prompt we have got promising results in this first hole, and that's what we're pushing forward with. It's it's fantastic first first result.

20:49 I think first of all, there are no assays available yet. No. All we have done is looked down the microscope with an x-ray diffraction approach to identify that lithium mineralization was present in the form of spodumene and other mineral mineral types, and that has been confirmed. We've had two intersections on just the first hole in fact three in the first hole, and we are encouraged by that. It's not a single source pegmatite, but we really need to move further forward on the program. And I think over the next two to three months, you'll see a significant amount of press release coming out from BRADDA HEAD on the performance we're doing and, as I say, being success driven as the information comes out and we get more excited about it, we will push ahead with all available energy. Yeah. Another question. Can we get more definite time scale from the San Diego drilling prospect project? When are we expecting the last quarter to be done? When are we expecting to receive the full asset results?

21:43 Well, we we have had slow progress over the summer due to extreme rain and also single shift drilling. We're now moving to double shift drilling, and the rain is decreasing, but we have had some recently. All these things will help us with our prospects. We are on track for, we believe, assay results. US is very busy right now. It is hard to give a guide, but we should get the last assay between two months after the last hole was completed. We'll be updating the market when we get these final hole results through, which will be towards the end of this year. What we can confirm is that we are applying as much management attention as we can to the San Domingo operation. It is an exciting opportunity for us, and the first drill information we got, added to our excitement. So you can rest assured that the quicker we can get going, the better for us, and that's our intention.

22:42 Yep. There's a question about Zenith Minerals. How close relationship do you have with your 11% shareholder, Zenith? We have a very strong relationship with Zenith. Zenith were partnered with BRADDA and found the assets originally in 2016. So Zenith, you know, believe in these assets. Zenith itself is splitting into two entities. One is a a EV vehicle focusing on electric battery metals. The other is separating other assets out. Zenith is very happy with its shareholding in BRADDA and will continue to support BRADDA in the way we are developing our our projects. That's my understanding. That's correct. Yeah. And that from the q and a, that's everything?

23:31 Alright. Thanks, Charlie. Okay. Having completed that part of the meeting, let's move on. If there's no further questions, we'll pop we'll move on to the formal piece of the meeting, and we'll finally put to the meeting the resolutions detailed in the documents posted to everyone. I should also let you know that we have received 12 proxy forms resent representing approximately a 166,000,000 votes that have been cast. So resolution one, which is an ordinary resolution, to receive and adopt the report of directors and the financial statements for the year ended 02/28/2022 together with the report of the independent auditor. So resolution one is put to the floor, and I'll ask mister Jenkins to to point to the resolution second.

24:20 I will now put the resolution to the vote. Can I ask those in favor to please raise their hands and those against? Based on the information that I've been given, I declare that the resolution has been carried. Move on to resolution two, which again is a normal resolution to reappoint KPMG Audit LLC as the auditor to hold office from the conclusion of this meeting to the conclusion of the next meeting at which the financial statements are laid before the government After remuneration, a remuneration determined by the directors. I will ask mister Firksroy to second the resolution. Second. And I will now put this resolution to the board. Once again, can I ask those in favor to please raise their hands? And those against?

25:06 Again, I confirm that the resolution has been carried by a significant vote for. Moving on to the third resolution, again, the normal resolution. This is to grant the directors authority to allot and issue shares and grant the rights to supply for up to 390,609,439 new shares in the company, being 100% of the entire issued share capital of the company as at the date of this document. And to ex exclude these, exclude shares issued by the company pursuant to the exercise of options and or warrants held by employees, management, or other advisers at the date this resolution. This resolution replaces any existing authority to issue shares in the company, and the authority under this resolution will expire at the conclusion of the next annual general meeting of the company.

25:57 And we'll ask mister Yig to second the resolution. Seconded. I will now again put the resolution to the vote. Can I ask those in favor to please raise your hands? And those against? Once more, I declare the resolution carried. Resolution four, an an order resolution to reappoint So then I make as a director retiring by rotation in accordance with company's articles or association. Can we get mister Jenkins to second the resolution? Second of again, can we have the vote, please? Those in favor? Those against? Once more, the resolution has been carried. To reappoint mister Jim Mellon as the next resolution, again, a director retiring by rotation in accordance with the company's articles of association. If I could ask mister Fitzroy to sign the resolution.

26:44 Once more to the vote, can I ask those in favor? And those against, I can confirm the resolution has been carried. And finally, resolution six, which is a special resolution requiring 75% of majority of the votes cast. That if resolution three is passed, the directors are hereby authorized to issue equity and securities as containing authority up to 390,000,000,609,439 new shares, being 100% of the entire issued share count of the company as of the date of this document, excluding the excluded securities as defined previously. This is for cash in a non preemptive basis pursuant to the authority conferred by resolution three that we've already passed. The authority granted by this resolution will expire at the conclusion of the next AGM meeting of the company.

27:34 Could I ask mister Fitzroy to second this? And once again, finally, to the votes in favor. Those against, just counting those against. You know, I think we've passed this again by a significant majority. So on the basis of that, everyone present with that now completes all the resolutions sent to you and closes the formal part of the meeting. For those of us who are here in the Isle Of Man in a very pleasant warm day today, there's still tea and coffee available as needed. And so can I thank everyone for their attendance at this meeting today? Thank you very much. That's great. Thank you to the board of BRADDA HEAD LITHIUM for your time this morning. Expectations.

28:23 This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the board of BRADDA HEAD LITHIUM LIMITED, we'd like to thank you for attending today's annual general meeting. That now concludes the meeting, and I wish you all a very pleasant morning.