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1 Certain statements included in this presentation are forward - - PowerPoint PPT Presentation
1 Certain statements included in this presentation are forward - - PowerPoint PPT Presentation
1 Certain statements included in this presentation are forward looking statements currency fluctuations; defective title to mineral claims or property and dependence within the meaning of Canadian securities laws, including the following
Certain statements included in this presentation are forward looking statements within the meaning of Canadian securities laws, including the following statements regarding the Aukam property: the ability of Gratomic Inc. (“Gratomic Inc.” or the “Company”) to acquire additional concessions with potential resources; the potential to develop resources; the anticipated economic potential
- f the Aukam project or any supply or off-take agreement; the anticipated
economic potential of the concessions; the anticipated economic and political developments in Namibia; the availability of capital and financing for the Company to execute its commitments and strategy going forward. Forward- looking statements are based on estimates and assumptions made by the Company in light of its experience and perception of current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company’s results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: discrepancies between actual and estimated results from exploration and development and
- perating risks, dependence on early exploration stage concessions; political
and foreign risks; uninsurable risks; competition; regulatory restrictions, including environmental regulatory restrictions and liability;
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currency fluctuations; defective title to mineral claims or property and dependence
- n key employees. Persons reviewing this presentation are cautioned not to place
undue reliance on forward- looking statements due to inherent uncertainty therein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events
- r otherwise, except as required by law.
Gratomic wishes to emphasize that the supply of graphite pursuant to any off-take
- r supply agreement referred to in the Presentation is conditional on Gratomic
being able to bring the Aukam project into a production phase, and for any graphite being produced to meet certain technical and mineralization
- requirements. Gratomic continues to move its business towards production and
as part of its business plan, expects to obtain a National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report to help it ascertain the economics of the Aukam project. Presently the Company uses its existing pilot processing facility to produce certain amounts of graphite concentrate from accumulated surface graphite. Please see Risk Factors on slide 37 (“Risk Factors”). The technical information contained in this presentation have been reviewed and approved by Steven Gray, P. Geo, a Qualified Person as defined under NI 43-101.
- Near term production potential with
early revenue upside*
- Potential for world class resource*
- Potential multi decade mine life*
- Regional sized graphite footprint
- MINING LICENSE PENDING!!!
- 1416 square km of exclusive
prospecting license
- Early stage development of
graphene tire (Gratomic)
- World class leadership team
- Low C1 cash cost and production
cost
- Environmentally friendly method of
graphite processing Graphite production capacity of 20,000 tonnes per annum* Graphite occurrences along 15km strike Graphite to graphenes using plasma reactors Global automotive tire market today is USD$258 billion1 and forecasted to reach USD$454 billion by 2026.2 AUKAM RARE GRAPHITE MINE PERPETUUS ADVANCED MATERIALS
MARKET
50%/50% JV Supplier of 98%+Cg graphite purity after flotation and Air Classification. Graphene tires
1https://www.freedoniagroup.com/industry-study/world-tires-3357.htm 2https://www.marketwatch.com/press-release/automotive-tire-market-size-is-anticipated-to-reach-usd-4537-billion-by-2026-2019-03-12
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*See Risk Factors – Slide 37
NAMIBIA, AFRICA
- High grade crystalline vein graphite asset ranging between 3% Cg and
81% Cg through drilling, sampling, and bulk sampling.
- One of the only jurisdictions of viable vein graphite outside of
Sri-Lanka.
- Visible Surface Graphite Identified over 15 km strike.
- In the final 3-month construction phase of the 20,000* tpa processing
plant, which will enable Gratomic to produce graphite concentrates of 98.37% Cg purity on average.
- Surface stockpiles that will serve as initial feedstock for the first two
years of production.
- Several veins open in lower adit easily accessible for immediate
mining.
- Aukam graphite to graphene assayed at Swansea University, UK
where plasma processes delivers graphenes at 99% Cg. (Please reference slide 17 and 18 – SEM analysis)
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*See Risk Factors – Slide 37
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Atlantic Ocean Coastal Plain Desert Paleozoic Tablelands
hours
1.5
Town of Aus Aukam Mine Paved Highway & Railway Luderitz Harbor
500m cargo and container quay
Composite ID Cleaner Concentrate (avg %Cg) AUK-C 1 98.27% AUK-C 2 98.71% AUK-C 3 98.77% AUK-C 4 98.29% AUK-C 5 97.97% AUK-C 6 98.61%
AUKAM ACHIEVABLE PROCESSED GRADE
Test processing results have produced an average grade of 98.37% Cg in cleaner concentrate average after flotation Higher (>99.9%) concentrations can be achieved with air classification
99%
Flotation Concentrate
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AUKAM GEOLOGICAL DIAGRAM
TODAQ* PHU SUMIKA*
- Under a USD $25 Million (payable in TODA
notes) supply agreement with TODAQ, Gratomic will supply TODAQ with pre- graphene graphite to be used by TODAQ as a reserve backstop to underpin the value of deployed TODA Notes (TDN).
- TODAQ has, to date, placed two initial
purchase orders, for 1,200 tonnes of graphite, for USD $6 Million (payable in TDN 60 Million at an agreed exchange rate of USD $0.10 per TDN), and a third-order is anticipated for another 600 tonnes of graphite is to be placed, for an additional USD $3 Million (payable in TDN 30 Million at an agreed exchange rate of USD $0.10 per TDN). The balance of the order (USD $16 Million) will be paid for in TDN, with the TDN valued at the market rate of exchange.
- Under a sales agreement with Phu Sumika,
Gratomic will supply to Phu Sumika 7,500 tonnes of graphite per annum, for a term of five years from the date the Aukam Plant begins commercial production
- The sales agreement contemplates the sale
- f graphitic product ranging from 80% to
99.9% carbon at prices ranging between $500 to USD $2,800 per tonne 8 8
*See Risk Factors – Slide 37
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On the 23rd of March 2020, Gratomic received a Notice from the Ministry of Mines and Energy of Namibia. The Minister is prepared to grant Mining License 215 (ML215) for its Aukam Graphite Property in Namibia. The License area falls within the proximity of the Aukam Processing Plant and the Graphite bearing shear zone
- f 5002 hectares (5002 ha).
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10 Gratomic EPL’s:
- EPL 3895 –27 820.4515Ha.
- EPL 6710 - 35 201.1195Ha.
- EPL 7512 - 24 479.6005Ha.
- EPL 7513 - 49 972.0706Ha.
Mining License:
- 5002Ha on EPL 3895
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Perpetuus is believed to be the world’s only producer of graphite derived graphenes with outputs independently verified for volumes and quality.
- Gratomic owns three triple chamber
reactors housed at the Perpetuus factory in Swansea
- Semi-automatic, computer
controlled for repeatability and tune- ability.
- Robust and capable of processing
most graphite derived nano- materials.
- New production facility located in
Swansea, Wales, UK.
- 2021 production capability of
- approx. 500 tonnes per annum.
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- Gratomic and Perpetuus entered into a collaborative
agreement on March 5th, 2018.
- The agreement calls for Gratomic to be the supplier of
high-grade graphite concentrates and Perpetuus to supply
- perating expertise and contribute IP.
- Gratomic owns 3 reactors housed in the Perpetuus factory
in Swansea Wales, UK.
- As per the agreement, the companies split the profit on a
50:50 basis.
- Perpetuus developed its own patented dry plasma
processing technology and currently has one of the largest graphene purchase contracts in the world with Vittoria
- Tires. (Patent owned by Perpetuus)
- Perpetuus has a customer base of 500 companies.
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- Surface modified graphene stacks:
- Easy to handle
- Easy to package
- Friable
- Easily handled, packaged and dispersed within target polymer matrix.
- Patented production method and production outputs.
- Eco-friendly.
- The first layer of graphene was isolated in the University
- f Manchester in 2004.
- Graphene is an allotrope of carbon a single atom thick
plane of graphite.
- Invisible to the naked eye and almost impossible to
handle as a single layer.
- High specific surface area of 2,700 sq. meters per gram.
- Key properties:
- Elevates thermal conductivity
- Facilitates electrical conductivity
- Elevates physical and material properties (when
homogeneously dispersed in a polymer)
- Aukam graphite to graphenes
assayed at Swansea University where plasma processes deliver graphenes at 99% carbon. (Please reference slides 17 and 18 below).
- Consistently produced via
environmentally friendly computer controlled production processes.
- Obtained independent verification of
production quantities and qualities.
- Gratomic has a license from
Perpetuus for a robust granted patent (US, China, EU, UK and Japan) intellectual property portfolio along with a pipeline of products to be rolled out in the short, mid and long term.
- Generated market ready products for
sale to multiple market sectors. 15
(August 14, 2018 News Release “Gratomic Provides Update on Perpetuus Graphene Development Program”)
Gratomic Input Material Graphite Perpetuus Output Material – Graphene Stacks 16
17
PROJECT 1
6/30/2019 6:11:26 PM
Spectrum processing : Peaks possibly omitted : 0.707, 6.378 keV Processing option : All elements analyzed (Normalised) Number of iterations = 4 Standard : C CaCO3 1-Jun-1999 12:00 AM Si SiO2 1-Jun-1999 12:00 AM K MAD-10 Feldspar 1-Jun-1999 12:00 AM Eleme nt Weight % Atomic % C K 97.56 98.97 Si K 1.99 0.89 K K 0.46 0.15 Totals 100.00
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Project 1
6/60/2019 6:13:23 PM
Spectrum processing : No peaks omitted Processing option : All elements analyzed (Normalised) Number of iterations = 4 Standard : C CaCO3 1-Jun-1999 12:00 AM Si SiO2 1-Jun-1999 12:00 AM K MAD-10 Feldspar 1-Jun-1999 12:00 AM Fe Fe 1-Jun-1999 12:00 AM Eleme nt Weight % Atomic % C K 97.43 99.06 Si K 1.50 0.67 K K 0.34 0.11 Fe L 0.73 0.16 Totals 100.00
TIRES BATTERIES & CAPACITORS TOUCH SCREENS CONDUCTIVE INKS & PASTES ELECTRONIC DEVICES PAINTS
- Reduce friction
- Harder wearing
- Improved
safety & fuel economy
- Light, quick to charge, thin
and inexpensive to produce
- Boosted capacity, charge
rate and longevity
- Electric vehicles
- Lighter, stronger and faster
- Graphenes are able to
transfer electrons at much faster speeds (relatively speaking, 1,000 kilometres per second, 30 times faster than silicon)
- Vastly more conductive,
flexible and more efficient
- Printing of electrodes
such as on circuit boards
- Improve processing
speeds, reduce circuit size
- Improve manufacturing
yields
- Applicable in wafer and
hard disks
- Touchscreens, liquid
crystal displays, photovoltaic cells and light-emitting diodes
- Corrosion barrier
between oxygen and water diffusion
- Rust inhibitors
- Can also be used to
capture solar energy
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OPPORTUNITIES
Gratomic’s graphite derived graphenes are being used in 15 inch tires during terrain tests
- n small commercial, high mileage vehicles in Europe and Asia.
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1 As of April 17, 2020
ISSUED & OUTSTANDING WARRANTS OPTIONS
FULLY DILUTED1
45,244,228 28,133,474 3,005,000
76,382,702
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Arno Brand , CEO & President
- Mr. Brand, is a Namibian entrepreneur with 12 years of experience working on major
construction and mining projects in Africa. As an experienced commodity Trader/Broker, Arno has been involved in numerous public transactions and company financings.
Rodger Roden, CFO
- Mr. Roden, CPA CA, has more than 30 years of industry experience and has worked as
Vice President of Finance/Chief Financial Officer with public and private companies in a broad range of industries including the mineral sector. His experience includes all aspects
- f corporate finance, mergers and acquisitions, IT implementations, tax, and business
systems and process analyses and implementation.
Bill Johnstone, Legal Counsel & Corporate Secretary
- Mr. Johnstone has been a partner at Gardiner Roberts LLP since February of 2005
practicing in the areas of securities and corporate law. He is the Practice Leader of the firm’s Securities Law Group. Mr. Johnstone has been practicing law for over thirty (30) years. He is also a director and/or officer of five other TSX Venture Exchange listed companies and three Canadian Securities Exchange listed companies.
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Walter Luke PMP, Director
- Mr. Luke is certified in professional project management with over 29 years of global
experience directing large projects for many notable companies. His ventures have taken him to over 40 countries and has brought international recognition to numerous business developments worldwide. Walter will be leading the charge to ensure that compliance and corporate governance are effectively achieved.
Alex Helmel, Director
- Mr. Helmel is an independent management consultant, possessing specific expertise
working with early-stage venture companies within the Canadian Capital Markets. Alex focuses on private to public market transitions, corporate governance, the development of senior management teams, and corporate growth strategies.
Steven Gray, Director
- Mr. Gray is a geologist registered with the Association of Professional Geoscientists of
Ontario (“APGO”). With more than 28 years of experience, he maneuvers effectively within the Resource Sector. He is Director and Managing Partner for a private mining company
- perating in Arizona, Director for a publicly traded Canadian based venture capital firm, and
recently served as Vice President for a publicly traded minerals company. Mr. Gray provides consulting services related to underground and open-pit mine planning, scoping and feasibility studies in Canada and abroad.
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Armando Farhate, Executive Management & Head of Advisory Board
- Mr. Farhate’s prior experience in the planning, engineering, research and development,
processing, project management, sales, and marketing areas of the graphite mining industry make him the ideal candidate to fill the role as Head of the Advisory Committee. In past projects, he was responsible for quality management, environmental management, and implementing strategic and tactical planning. Mr. Farhate will oversee the quality management of the Aukam Graphite Mine and as Head of the Company’s Advisory Committee, he will coordinate important decisions regarding processing. His knowledge and expertise will foster numerous opportunities for Gratomic, not only through Mr. Farhate’s experience but through his network within the graphite industry as well.
- Dr. Ian Flint, Mining & Processing Engineer
- Dr. Flint has more than 25 years’ experience in the graphite industry including more recent
work in the growing field of graphene manufacture and commercialization. Dr. Flint’s experience includes process design, test work, pilot plants, equipment design, physical processing and materials development. He has worked as metallurgist, and/or director of more than 30 graphite/graphene projects worldwide. Dr. Flint holds a Ph.D. in mining and mineral processing engineering (2001) from the University of British Columbia and has more than 10 years of teaching mining engineering and graphite processing at Dalhousie University in Halifax.
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- Under a USD $25 Million (payable in TODA notes) supply agreement with TODAQ, Gratomic will
supply TODAQ with pre-graphene graphite to be used by TODAQ as a reserve backstop to underpin the value of deployed TODA Notes (TDN).
- TODAQ has, to date, placed two initial purchase orders, for 1,200 tonnes of graphite, for USD $6
Million (payable in TDN 60 Million at an agreed exchange rate of USD $0.10 per TDN), and according to Gratomic’s management, a third-order for another 600 tonnes of graphite is to be placed, for an additional USD $3 Million (payable in TDN 30 Million at an agreed exchange rate of USD $0.10 per TDN).
- The balance of the order (USD $16 Million) will be paid for in TDN, with the TDN valued at the market
rate of exchange.
- TDN is listed on the BitForex exchange (https://www.bitforex.com/)
- The graphite is being purchased by TODAQ to sit in reserve as a backstop to underpin the value of
deployed TDN
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- Under a sales agreement with Phu Sumika, Gratomic will supply to Phu Sumika 7,500
tonnes of graphite per annum, for a term of five years from the date the Aukam Plant begins commercial production.
- The sales agreement contemplates the sale of graphitic product ranging from 80% to
99.9% carbon at prices ranging between $500 to USD $2,800 per tonne.
- Sample grades of 92% to 99.9% Cg have been delivered for testing in the utilization of
refractory graphite concentrates specific to lubricants, abrasives and battery markets
Photos supplied by PHU Sumika website via Abrasives 1.com
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Size Reduction Jaw Crusher Impact Crusher Cyclone Rod Mill Separations Primary Flotation Grade Flotation Recovery Flotation Feed Dewatering Thickener Filter Thickener Bricks Dryer H2O Recovery H2O Storage Clean Water Ion Removal Solids Removal Process Water
29 Gratomic purchased two drills in January 2019, an XY1 and LY 38.
- The XY1 will be used for exploration
drilling and the LY 38 will be used for defining a mineral resource at Aukam.
- Phase two of the mine plan will be
established based on the results of the LY38 surface drill program.
- The drilling program will include further
exploration for 2020 and is expected to cost approx. CAD $120,000 and commence in September.
30 March of 2017, Gratomic conducted an infill drill program using its company owned Kemp pneumatic drill using a BQ system in the existing main adit over 659 meters. The 29 combined drill holes revealed graphite mineralization demonstrating a range of 3% Cg - 64%Cg. Phase one mining is comprised of the removal of visible surface stockpiles found around the main adits and the drilled veins. A phase two mine plan has been drafted based on the combined initial drill results and the graphite visible on the surface and in the underground workings.
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South view of the underground drill program indicating selected graphite intersections of the main adit.
32 The mine plan will be conducted in phases beginning with phase
- ne and two as
- utlined below.
Phase one is focused on recovering 20,000* tonnes
- f 98% graphite concentrate
from historical mined areas and in-situ graphite mineralization indicated from the underground drill
- program. The graphite will
then be stockpiled and passed through the processing plant. Phase two will commence after the depletion of existing surface stockpiles. This phase will be based on additional surface drilling at and near the discovery zone.
*See Risk Factors – Slide 37
Natural Graphite
AB Stacking Exfoliation ABC Stacking Liberation of Graphenes
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Graphite to Graphenes method employed by Gratomic:
KEY NOTES:
- 30% less abrasion (volume loss) with Gratomic
graphenes compound, which means higher mileage before tire replacement.
- 41% higher rebound height provides a compound
with increased resilience. Consequently, an improvement in rolling resistance to deliver an improvement in fuel economy.
Specific gravity Hardness Tensile strength ( Kg/Cm2) 100% modulus ( Kg/Cm2) 300% modulus( Kg/Cm2) Elongation ( % ) Abrasion ( mm3) Rebound height ( H 125 ) Rebound height ( H 250 )
Parameters Customer Compound Zero Graphene Gratomic Graphene Stacks Compound % Improvement
Specific gravity 1.18 1.20 Hardness 67.00 65.00 Tensile strength ( Kg/Cm2) 176.60 241.27 36.62 100% modulus ( Kg/Cm2) 30.64 32.08 4.70 300% modulus( Kg/Cm2) 106.67 148.80 39.50 Elongation ( % ) 495.05 447.40 10.65 Abrasion ( mm3) 90.84 63.13 30.50 Rebound height ( H 125 ) 11.00 15.50 40.91 Rebound height ( H 250 ) 14.50 20.50 41.38
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1Lower tan delta value indicates significant decrease in rolling resistance, which increases in MPG
35 KEY NOTES:
Wet Grip: 41% Improvement with Gratomic graphene stacks Ice Grip: 53% Improvement with Gratomic graphene stacks RR1: 38% Improvement with Gratomic graphene stacks
PARAMETERS CUSTOMER COMPOUND ZERO GRAPHENES GRATOMIC GRAPHENE STACKS COMPOUND % IMPROVEMENT Tan delta 0 degree (Wet Grip) 0.2 0.28 41.26 Tan delta -20 degree (Ice Grip) 0.41 0.63 53.36 Tan delta 20 degree (Dry Grip) 0.17 0.18 0.79 Tan delta 60 degree (RR)1 0.15 0.09
- 38.33
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Warrants
Exercise Price Expiry Date Outstanding Warrants Outstanding Broker Warrants
Warrants re November 24, 2017 FT Shares Private Placement
$0.50 20-Nov-20 6,451,828
Broker Warrants re November 24, 2017 WC Private Placement
$0.35 20-Nov-20 325,278
Warrants re August 10, 2018 WC Private Placement
$1.00 10-Aug-21 4,685,000
Broker Warrants re August 10, 2018 WC Private Placement
$0.50 10-Aug-21 188,500
Warrants re December 11, 2018 WC Private Placement
$1.00 11-Dec-21 4,836,600
Broker Warrants re December 12, 2018 WC Private Placement
$0.50 11-Dec-21 192,480
Warrants re December 12, 2018 WC Private Placement
$1.00 12-Dec-21 163,400
Warrants re December 18, 2019 WC Private Placement
$0.10 18-Dec-22 5,938,888
Broker Warrants re December 18, 2019 WC Private Placement
$0.05625 18-Dec-22 161,500
Warrants re December 23, 2019 WC Private Placement
$0.10 23-Dec-22 3,000,000
Warrants re February 11, 2020 WC Private Placement
$0.10 11-Feb-23 2,190,000
GRANT TOTAL
27,265,716 867,758
Outstanding warrants
27,265,716
Outstanding broker warrants
867,758
AGGREGATE OUTSTANDING WARRANTS
28,133,474
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Risk Factors
No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant. The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. Failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company's cash flow and future profitability.
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