Virtus Minerals Corporation is a junior mining exploration company focused on lithium and rare earth elements. The company holds four lithium exploration projects in Quebec, Canada: Valiquette, Nemiscau, Nemiscau Vista, and Cascapedia. Valiquette and Nemiscau/Nemiscau Vista show potential for lithium and rare earth elements and are located near the Whabouchi lithium mine. Initial exploration programs are planned to begin once financing is secured. The presentation provides an overview of the company's projects and the positive outlook for lithium demand driven by electric vehicles and energy storage.
2. FORWARD-LOOKING INFORMATION
Purpose
The sole purpose ("the Purpose") of this presentation (the âPresentationâ) is to provide information on Virtus Minerals Corporation Ltd (âVirtus" or "the Company") This
Presentation and the contents of it do not, and are not intended to, constitute an offer for sale, prospectus, invitation to subscribe for or purchase or otherwise acquire, shares or
other securities in the Company.
Verification of information
The information contained in this Presentation is being supplied as a guide only and no reliance may be placed for any purpose whatsoever on the sufficiency, accuracy or
completeness of the statements contained herein. No representation or warranty whatsoever is given by or on behalf of Virtus or any directors, officers, employees or advisers or
any other person, and no responsibility or liability is accepted by any of them, in relation to the shares, business or prospects of the Company expressed or implied, or with respect
to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, projections or other information set out in this Presentation or any further
information, written or oral or other, supplied in connection with it. Nothing contained within this Presentation is or should be relied upon as a promise or representation as to the
future. Any pro-forma and estimated financial information contained herein is prepared expressly for use herein and is based on certain assumptions and the Directors' analysis of
information available at the time this Presentation was prepared. There is no representation, warranty or other assurance that any of the projections will be realised. The
information contained herein and any further information relating to the Company supplied by Virtus or its advisers is, and will be, supplied on the condition that neither Virtus nor
its advisers accepts any responsibility and/or liability for any loss or damage of whatsoever nature that may result or occur by reliance on such information and howsoever arising.
The information contained in this Presentation has not been legally verified.
Forward Looking Statement
Certain statements made in this presentation are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's
current expectations, estimates and projections about its industry, its beliefs and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,'
'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and
unknown risks, uncertainties and other factors, some of which are beyond the Company's control, are difficult to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements. These factors include, amongst others; technology risks, including dependence on core technology; fluctuations
in results; dependence on new product development; rapid technological and market change; reliance on sales by others; management of growth; dependence on key personnel;
rapid expansion; financial risk management; and future growth subject to risks. The Company cautions recipients of this presentation not to place undue reliance on these forward-
looking statements, which reflect the view of the Company only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events
as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements
to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
Qualified Person
Scientific or technical information in this presentation has been reviewed by Stanley Robinson, P. Geo, who is the 'qualified person' (as such term is defined under National
Instrument 43-101) of the Company.
CORPORATE PRESENTATION AND UPDATE
Q3/2016
3. THIS IS D-DAY FOR LITHIUM MINERS: ITâS ALL
ABOUT NEW ENTRANTS TO A COMMODITY
SPACE THAT IS ABOUT TO CHANGE
EXPONENTIALLYâŠ
4. LITHIUM IS KEY
TO ADDRESSING
OUR FUTURE
ENERGY NEEDS.
THE BOUNDARIES OF ENERGY
STORAGE ARE BEING PUSHED BY
GRID-SCALE POWER STORAGE,
ELECTRIC VEHICLES AND
CONSUMER ELECTRONICS.
Photo: Apple.
6. THE MOVE TO LITHIUM
Why Lithium?
Lithium powers modern technology: it is used in rechargeable
lithium-ion batteries for electric vehicles, grid-scale energy
storage, phones, laptops, cameras, gaming consoles and
hundreds of other electronic devices. Lithium-ion batteries are
used increasingly for bikes, power tools, forklifts, cranes and
other industrial equipment.
We have already seen Tesla increase the land holding of their
$5 billion lithium-ion battery factory currently under construction
in Nevadaâand the company recently announced the Model 3,
which has already hit over 300,000 pre-orders
And Faraday Future recently struck a deal to build a $1 billion
electric car plant in NV.
Due to lithiumâs key role in batteries, and the ever expanding
need of batteries to power our modern lives, lithium seems
untouched by economic downturns.
CORPORATE PRESENTATION AND UPDATE
Q3/2016
Photo: Tesla Motors, Inc.
7. BUT ITâS NOT JUST ABOUT TESLA
Demand is growing, not slowing.
Itâs not all about Tesla. While Tesla has stoked plenty of
excitement around lithium, itâs far from the only end user.
Google, Apple, Sony, and vehicle manufacturers, such as Audi
and Mercedes, had entered the space in earnest1.
Meanwhile, battery majors, such as LG Chem and Samsung, all
have expansion plans for their new plants. Companies like BYD
are also building their own battery plants. Boston Power is
looking to expand, while Foxconn said they were going to enter
battery manufacturing.
At least 12 lithium ion âmegafactoriesâ are forecast to come
online by 2020 (new or existing plants being planned,
constructed or expanded to gigawatt-hour capacity), with seven
of them located in China.
1 Source: Benchmark Mineral Intelligence
CORPORATE PRESENTATION AND UPDATE
Q3/2016
8. $16.5 TRILLION
PROJECTED
INVESTMENT BY 2040 IN
SOLAR, WIND,
TRANSPORTATION AND
INFRASTRUCTURE
- International Energy Agency,
World Energy Outlook, Special
Briefing for COP21
9. LITHIUM IN TIGHT SUPPLY
So where will new supply come from?
Demand for lithium - one of the hottest commodities on the
planet and the only one to show positive price movement in
2015 - is poised to continue on its upward trajectory, becoming
the worldâs new gasoline and earning the moniker of âWhite
Petroleumâ.
However, new supply of low-cost lithium is constrained: political,
capital, technical and environmental issues are forcing new
projects either into failure or causing delays.
This has caused recent spot prices for lithium in China to have
doubled, resetting price expectations.
Proof of unstoppable lithium demand can be found in the fact
that even though natural gas, coal and gasoline prices are down
50% or more, lithium prices increased by about 20% in 2014
and by a larger percentage in 2015.
CORPORATE PRESENTATION AND UPDATE
Q3/2016
10. Source: Deutsche Bank; Asian Metals
0
50
100
150
200
250
300
350
400
450
2015 A 2016 E 2017 E 2018 E 2019 E 2020 E 2021 E 2022 E 2023 E 2024 E 2025 E
US$900 MLITHIUM âMARKET VALUEâ
OVER 400,000 TPROJECTED ANNUAL DEMAND FOR LITHIUM BY 2025
Lithium Carbonate Equivalent (âLCEâ)
demand (â000 metric tonnes)
11. Source: Citigroup, Economist
CHARGING UP
CORPORATE PRESENTATION AND UPDATE
Q3/2016
Lithium Carbonate spot price per metric tonne ($ â000)
The price of 99%-pure lithium
carbonate imported to China more
than doubled in the two months to
the end of December, to $13,000 a
tonne.
The spike mostly reflected
concerns about the future liquidity
of Chinaâs spot market.
Sales of ânew energyâ vehicles in
China almost tripled in the first ten
months of 2015 compared with the
same period in 2014, to 171,000.
14. The Valiquette exploration project comprises 40
claims for a total of 2067 ha in the James Bay
territory of Northern Quebec. The claim blocks lie
some 5 km south from the world-class Whabouchi
lithium deposit of Nemaska Lithium Inc..
The Valiquette project claims were part of a claim
group belonging to Osisko Exploration (Virginia
Gold) back in 2003.
VALIQUETTE, QC.
15. Property geology
The Valiquette property covers a small portion of an area
underlain by gneissic rocks that hosts a series of pegmatite dikes
that extend along strike for over 100 km. Pegmatites in this area
are lithium bearing; the most significant to date is the Whabouchi
deposit 5 km to the north that is being developed by Nemaska
Lithium (NMX-TSX.V).
The Whabouchi lithium deposit is chiefly
made up of a spodumene bearing white
pegmatite which has a length of 1,2 km
with a 40 m width. In comparison, the
Valiquette Project has at minimum two
untested granitic pegmatite dikes that
each extend for over 3 km and 1.6 km in
length each.
Majescor Resources Inc. holds adjacent
properties to Virtus's Valiquette project
and are prospecting for lithium in those
scattered pegmatites/pegmatitic granites
which are known to occur over a strike
length of 110 km for their content in
lithium, tantalum, niobium and beryllium.
Up to this time, it is not known if those
pegmatitic granites/pegmatites found on
the claims of Majescor and Virtus have
been explored for all those elements.
Initial prospecting program is planned to
begin as soon as financing is secured.
VALIQUETTE, QC.
18. Property geology
Nemiscau is located in the Superior Craton of the Canadian Shield.
Regional and property-scale geology consists mainly of granites and
oligoclase gneisses with amphibolites and pegmatites reported
regionally.
The Nemiscau area has been considered prospective since the
1950s, and claims have been held by a number of companies. Though
little work has been carried out, several minerals of potential economic
significance have been reported on a regional scale.
Phase I - Thorough sampling and
geochemical analysis of known granites
and pegmatites to assess rare element
fertility along with a propertyâwide surface
till and boulder sampling program to
detect pegmatite float and/or LCT
indicator minerals (CAN $220,990);
Phase 2 - A helicopter magnetic survey at
100 m line spacing to define bedrock
geology and structural controls for
pegmatite emplacement on the property
followed by inâfill surface till sampling,
base of till sampling, soil geochemistry
and further geochemical sampling of
bedrock to define drill targets (CAN
$303,765);
Phase 3 - An approximately 2,000 â
4,000 m diamond drilling program to test
targets identified in Phase 2 (estimated
CAN $700,000).
NEMISCAU, QC.
22. âTHE STONE AGE
CAME TO AN END, NOT
BECAUSE WE HAD A
LACK OF STONES, AND
THE OIL AGE WILL
COME TO AN END NOT
BECAUSE WE HAVE A
LACK OF OIL.â
â Sheikh Ahmed Zaki Yamani
formerly Saudi Arabia's minister for oil (1962â1986) and head of Opec
24. CORPORATE PRESENTATION AND UPDATE
Q3/2016
COMPS
Ashburton Ventures Inc (TSX.V ABR) is a natural comp for Virtus as it has a similar
land holding, i.e., it is adjacent to and on geological strike with Nemaska Lithiumâs
Whabouchi deposit to the southwest.
However, Ashburtonâs landholding totals a mere 1,176 ha for Whabouchi South and
320 ha for Whabouchi West (total 1,496 ha), less than 1/4 of Virtusâs 6,811 ha
Nemiscau, Nemiscau-Vista and Valiquette blocks.
The Whabouchi South and West projects are at a very early stage of exploration,
with only a geophysical survey currently underway.
ABR 1:
1 As at 2 June 2016
Shares i/o: 94.27 M
Vol./Avg.: 945,300.00/1.58M
Share price: $0.055
Mkt. cap.: $5.70 M
25. DANIEL BARRETTE â President and Chief Executive Officer (Director): Mr. Barrette possess over ten yearsâ experience in the mining
industry in a variety of commodities, including gaining substantial experience in managing and restructuring mining companies. Mr. Barrette was
instrumental in the restructuring, consolidation and development of SearchGold Resources Inc. (TSX.V-RSG) from 2011 until its successful RTO
by Ubika Corp in 2013, and for its financing of $54 million. Mr. Barrette has assisted public and private mining companies in acquiring mineral
properties, and in establishing and developing business in Africa, where he has extensive network of strategic contacts. Prior to Searchgold, he
was COO for Gilla Inc. (GLLA-OTCBB) until its RTO with Snoke Distribution Canada Ltd. Mr. Barrette was President & CEO of Affinor
Resources Inc. (TSX.V:AFI) from 2006 to 2008.
MARTIN NICOLETTI, CPA, CGA â Chief Financial Officer: Mr. Nicoletti joins the Company as Chief Financial Officer. Mr. Nicoletti is a
certified general accountant with twenty-seven years of experience. He graduated from the Quebec University in Trois-RiviĂšres in 1987 with a
bachelor degree in business administration. He joined Price Waterhouse where he spent the next four years serving several clients in the mining
industry. He then spent the following eleven years with companies as a controller or chief accountant. Since 2004, he has been involved with
public junior mining companies carrying out exploration activities worldwide, with responsibilities in financial controls and financial reporting. He
currently serves as the Chief Financial Officer of several public companies.
STANLEY ROBINSON, M.Sc., P.Geo â VP, Exploration (Director): Mr. Robinson is a Professional Geoscientist with 40 yearsâ exploration
and corporate experience in management of base metal and gold exploration projects from grassroots to feasibility in Africa and Canada as well
as project due-diligence and report writing in South America. Stanley delineated: 1.67 million ounce NI 43-101 compliant gold and inferred gold
resource, part of a nearly 3 million ounce global resource, in the Democratic Republic of Congo; 1.30 million ounce, non-NI 43-101 compliant,
gold resource in Burkina Faso; currently in commercial production; 0.25 million ounce, non-NI 43-101 compliant, gold resource in Nunavut,
Canada. Stanley serves as a Qualified Person, as defined under National Instrument 43-101.
CORPORATE PRESENTATION AND UPDATE
Q3/2016
MANAGEMENT TEAM
27. 14.4MSHARES I/O
CURRENT CAPITAL STRUCTURE.
7.5MMANAGEMENT
9,375,000
SHARES
$0.08PLUS A FULL,
TWO-YEAR WARRANT
AT $0.12
FINANCING, TARGETING $1.5M.
7,500,000
FLOW-THROUGH SHARES
$0.10PLUS A FULL,
TWO-YEAR WARRANT
AT $0.12