East Africa Mineral Processing Ltd.

Transcription

1 East Africa Mineral Processing Ltd. (A wholly owned subsidiary of AB Minerals Corp.) A New Coltan (Columbite-Tantalite) Separation Plant in Rwanda Utilizing a new disruptive processing technology to create metallurgical grade Tantalum powder and Niobium oxide from an industrial scale processing plant using certified conflict free ore mined in Rwanda and East Africa October 2016

2 Disclaimers and Cautionary Statements This Presentation is provided to you as an Accredited Investor or as a close friend or business associate of one of the directors, or management team of East Africa Mineral Processing Ltd. and/or AB Minerals Corp. This is not an invitation to the public to subscribe for securities and the foregoing has not been reviewed nor approved by any Securities Commission or Stock Exchange. This document may not be forwarded to other parties. This document contains certain forward-looking statements and forward-looking information which are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, including, among other things, assumptions with respect to future capital expenditures and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "plan", "should", "believe" and similar expressions are intended to identify forward-looking statements and forward-looking information. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements or information. The Company believes that the expectations reflected in those forward-looking statements and information are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forwardlooking statements and information included in this summary should not be unduly relied upon. Such forward-looking statements and information speak only as of the date of this summary and the Company does not undertake any obligation to publicly update or revise any forward-looking statements or information, except as required by applicable laws. These factors should not be construed as exhaustive. Except as required under applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking statements. This presentation does not constitute an offer of shares for sale in the United States or to any person that is, or is acting for the account or benefit of, any U.S. person (as defined in Regulation S under the United States Securities Act of 1933, as amended, or in any other jurisdiction in which such an offer would be illegal. East Africa Mineral Processing Ltd. shares have not been and will not be registered under the Securities Act. 2

3 Project Highlights Will be the first industrial scale Coltan (Columbite-Tantalite) separation plant in Rwanda and the only processing facility of its kind in all of Africa Utilizing a new, disruptive processing technology that is more environmentally friendly, low cost & energy efficient, to produce metallurgical grade Tantalum powder and Niobium oxide Minerals are in high demand - Tantalum is used in modern electronics and Niobium in used in high-strength low-alloy (HSLA) steels Unlike mining operations, profit margins for processing stay reasonably constant regardless of rising or declining commodity prices Rwanda is currently the world s largest exporter of coltan 3

4 Estimated Annual Global Tantalum Mine Production This will be the only smelter in Africa to process Tantalum EAMP has the opportunity to control the processing of over 50% of the world s Tantalum supply U.S. Dept of the Interior/U.S. Geological Survey Fact Sheet (December 2015) 4

5 Project Highlights ( cont) The project located in the heart of the coltan supply. The process is modular and scalable. Production capacity can easily be added to meet the supply from the region The plant design is now complete. Additional lines to increase processing capabilities can be funded through cash flow Payback within the first year of operation based on the initial processing plant of 90 tonnes per month Excellent relations with the miners and government. Have full support of the Minister of State in charge of Mining Government corruption has been virtually eliminated in Rwanda, with excellent business protections Ranked 46 th country in the world for Ease of Doing Business (World Bank Group Doing Business 2015 report) 5

6 Evaluation & Validation Run and Plant Construction A large scale evaluation and validation run is currently being arranged in North America with several prospective Multinational customers. They have expressed interest in signing Offtake Agreements for the finished products Will be run by a lab that has the required equipment and metallurgical expertise. Upon completion, the Company will build a modular, skid mounted processing plant that will be shipped to Rwanda Plant is expected to be turnkey upon arrival in Rwanda 6

7 EAMP Advanced Processing Technology Advantages EAMP has completed work on an new application to extract tantalum and niobium, a technological process that hasn t changed significantly in more than 60 yrs Nearly 100% recovery of the Tantalum (Ta 2 O 5 ) and Niobium (Nb 2 O 5 ) Hydrofluoric acid is not required for decomposition of the ore. Process creates K-salt - Potassium Fluorotantalate (K 2 TaF 7 ) and Niobium Hydroxide. Will upgrade K-salt to metallurgical grade Tantalum powder Significant processing cost reduction Is safer, easier to handle and more environmentally friendly 7

8 Results from this New Process The process will eliminate almost all elements from the raw ore and be left with K-salt and Niobium Hydroxide ready to export from Rwanda to Customers worldwide. RESULTS: K-salt - Potassium Fluorotantalate (K 2 TaF 7 ) Niobium Hydroxide. K-Salt will be further upgraded to metallurgical grade Tantalum powder 8

9 Tantalite Processing in Rwanda Rwanda s mineral ores produced in the country are 100% exported as mineral ore concentrates, not as metals or high value intermediate products. There are currently no Tantalite processing plants in the region, as the process requires Hydrofluoric Acid which cannot be imported or made in Rwanda due to safety considerations. Tantalite concentrate from Rwanda and East Africa is presently exported out of the country, receiving the lowest value in the chain. Foreign entities significantly increase the value of the Tantalite by smelting, separating all the minerals in the concentrate and upgrading them to oxides and finished products. China controls a majority of the supply of these materials. Currently the major benefits of East Africa s Tantalite mining accrue to foreign companies, as the majority of the processing takes place outside the region. 9

10 What is Tantalum & Niobium Used For? The plant will produce Tantalum & Niobium oxides. Tantalum is widely used in modern electronics capacitors, microchips, optoelectronic & acoustoelectronic devices, optics, as additives and coatings, special alloys manufacturing and the nuclear industry, to name a few The most important application for Niobium is as an alloying element to strengthen high-strength low-alloy (HSLA) steels used in automobiles, high-pressure gas transmission pipelines and jet engines. When these superconducting alloys are combined with titanium and tin, they are widely used in the superconducting magnets of MRI scanners. 10

11 Rwanda Now Rwanda is the most secure country in the region and the least corrupt in Africa, according to a Transparency International report - August 2013 Ease of Doing Business in the country has improved dramatically in the last 6 years. In 2009 Rwanda was ranked 139 th / 2015 ranked 46 th, according to the World Bank's Doing Business report Rwanda's economy has continued to grow on average at 8.5% GDP. They are ambitiously targeting a GDP rate of 11.5% by In 2010, Rwanda began implementing a mineral traceability and due diligence system (itsci) to ensure the minerals that make up our everyday products are conflict-free. 100% of all exports of tantalum, tungsten and tin from Rwanda are tagged under the ITRI program The now-formalized mining sector in Rwanda is the second largest income-generating industry in the country, growing at a rate of 44% per year since 2008 Rwanda is among the economies in the region that investors have hailed for solid fundamentals, including low debt and inflation. Between 2009 and 2014, Rwanda attracted approx $3 billion in foreign direct investments, equivalent to 40% of the country's GDP 11

12 The Benefit to the Country The mining industry has always had a strong positive impact on the Rwandan economy. It strengthens sustainable economic growth perspectives at the national level including employment and skills development, and reduces poverty for the low income sections of the population. Mining also plays an important role in terms of supporting private sector development as indicated in the Vision In 2013 Rwanda surpassed its revenue projections from mining. In 2014 export volumes increased, but revenues were lower due to lower international commodity prices. Smelting Tantalite into tantalum and niobium oxides will boost Rwanda s revenue collections from mineral exports. The market value will be considerably higher than the presently unprocessed Tantalite. Rwanda will have the first conflict-free Tantalite smelter in Africa. 12

13 Socio-Economic Impact for Rwanda Major beneficiaries of the project are the Artisanal & Small Scale Mining Companies and Cooperatives who represent almost 80% of the total miners in the country. With a focus to develop SME s (Small & Medium Sized Enterprises) in rural areas, it further contributes to reducing the economic disparity between rural areas and Kigali. Miners will be able to receive higher prices for their ore by selling directly to a local smelter rather than to agents. Will create employment, skills and training for its citizens. A Tantalite smelter will play an important role in assisting the mining sector in Rwanda. In 2011, the mining sector employed 25,000 people and is steadily growing. In 2015, more than 33,000 Rwandans worked in the industry. By 2018, that number is expected to nearly double. The government and companies won t be the only ones benefiting. Miners will have more money in their pockets. 13

14 Key Personnel Managing Director: Frank Balestra has been in Rwanda since He is the Founder of East Africa Mineral Processing Ltd. and AB Minerals Corp., and has over 25 years experience in assisting and advising private and public companies; procuring funding and incubating organizations in various stages of growth. He has successfully transformed start-ups from R&D and product development to commercially successful public entities. He has assembled a team of experienced chemical, metallurgical, engineering and scientific experts that specialize in the tantalum industry. This team has extensive knowledge and experience in tantalum processing and the tantalum supply chain. Business Development: Curt Huber is an independent corporate and financial consultant. He has been involved in all facets of public companies for more than 25 years. He is an experienced director and senior officer who has represented public companies in many different sectors: mining, oil and gas, and technology. In addition, he has provided investor relation services, raised financing in the public markets and built corporate awareness. 14

15 Project Timeline 15

16 Project Timeline ( cont) 16

17 Financial Projections & Budget to Set Up Plant 90 t/month Available upon request 17

18 For Further Information Contact Frank Balestra - Managing Director fbalestra@abmineralscorp.com Curt Huber - Business Development curt@abmineralscorp.com 18