Unlocking a new source of lithium in Alberta - Investor Presentation March 2021 - e3 Metals Corp
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Unlocking a new source of lithium in Alberta Investor Presentation March 2021 TSXV: ETMC FSE: OU7A OTC: EEMMF
Forward Looking Statements
This presentation contains forward-looking statements regarding E3 Metals Corp. (“E3 Metals” or “the be discovered on current properties or other future properties and even if commercial quantities of minerals are
Company”) and the potential of its current and future projects. Generally, forward-looking statements can be discovered, that such properties can be brought to a stage where such mineral resources can profitably be
identified by the use of forward-looking language such as “plans”, “expects”, “budgets”, “schedules”, produced therefrom; the failure of plant or equipment processes to operate as anticipated; the inability to obtain
“estimates”, “forecasts”, “intends”, “anticipates”, “believes”, or variations of such words and phrases, and the necessary approvals for the further exploration and development of all or any of E3 Metals’ properties; risks
statements that certain actions, events or results “may”, “could”, “would”, “might” ,“will be taken”, “will occur” or inherent in the mineral exploration and development business; the uncertainty of the requirements demanded
“will be achieved”. Forward-looking statements are based on the opinions and estimates of E3 Metals as of the by environmental agencies; E3 Metals’ ability to hire and retain qualified employees and consultants necessary
date such statements are made. for the exploration and development of any of E3 Metals’ properties and for the operation of E3 Metals’
business; and other risks related to mining activities that are beyond E3 Metals’ control.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, levels of activity, performance or achievements of E3 Metals to be materially different Although E3 Metals has attempted to identify important factors that could cause actual results to differ
from those expressed or implied by such forward-looking statements, including, but not limited to, risks related materially from those contained in the forward-looking statements in this presentation, there may be other
to: E3 Metals’ ability to effectively implement its planned exploration programs; unexpected events and delays factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that
in the course of E3 Metals’ exploration and drilling programs; changes in project parameters as plans continue such statements will prove to be accurate, as actual results and future events could differ materially from those
to be refined; the ability of E3 Metals to raise the capital necessary to conduct its planned exploration programs anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking
and to continue exploration on its properties; the failure to discover any significant amounts of lithium or other statements contained in this presentation. E3 Metals does not undertake to update any forward-looking
minerals on any of E3 Metals’ properties; the fact that E3 Metals’ properties are in the exploration stage and statements except in accordance with applicable securities laws.
exploration and development of mineral properties involves a high degree of risk and few properties which are
explored are ultimately developed into producing mineral properties; the fact that the mineral industry is highly Chris Doornbos (P.Geo), President, CEO and a Director of E3 Metals Corp., is a Qualified Person as defined
competitive and E3 Metals will be competing against competitors that may be larger and better capitalized, by National Instrument 43-101 and has read and approved the technical information contained in this
have access to more efficient technology, and have access to reserves of minerals that are cheaper to extract presentation.
and process; the fluctuations in the price of minerals and the future prices of minerals; the fact that if the price
of minerals deceases significantly, any minerals discovered on any of E3 Metals’ properties may become References:
uneconomical to extract; the continued demand for minerals and lithium; that fact that resource figures for
minerals are estimates only and no assurances can be given than any estimated levels of minerals will actually 1: Inferred Minerals Resources outlined in NI 43-101 report for Clearwater Lithium Project PEA, Rocky
be produced; governmental regulation of mining activities and oil and gas in Alberta and elsewhere, including Resource Area and Exshaw Resource Area. NI 43-101 Report and News Release can be found on E3 Metals’
regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and website (www.e3metalscorp.com) or SEDAR (www.sedar.com).
environmental protection; environmental regulation, which mandate, among other things, the maintenance of
air and water quality standards and land reclamation, limitations on the general, transportation, storage and
disposal of solid and hazardous waste; environmental hazards which may exist on the properties which are
unknown to E3 Metals at present and which have been caused by previous or existing owners or operators of
the properties; reclamation costs which are uncertain; the fact that commercial quantities of minerals may not
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 2
Company Overview
Combined Large Lithium Resource & Innovative Technology
• PEA demonstrates USD 1.1B NPV8% with 32% IRR (Pre-Tax)
• USD 820M NPV8% with 27% IRR (After-Tax)
• USD 602M Initial CAPEX and USD 3,656/tonne OPEX
• 7th Largest Resource1 in the world
• Developed proprietary Direct Lithium Extraction (DLE) technology
to extract lithium from the Alberta brines
• Initial development of 20,000 tonnes lithium hydroxide (LHM)/year,
potential to expand up to 150,000 tonnes LHM/year
• Net-Zero Carbon Emissions: ESG focused project development plan
aims for minimal land footprint, no freshwater use and zero carbon
• Exponential Growth in Electric Vehicle (EV) market means strong
market fundamentals for lithium demand
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 3
Management Team
Award-winning individuals with a diverse range of expertise
Chris Doornbos, P.Geo John Pantazopoulos, CFA, ICD.D Liz Lappin, P.Geo Jennifer Langford, BA
• CFO | Director
• President | CEO | • VP Corporate Affairs • Manager,
Director • Over 20 years' and Exploration Communications
experience as an
• Founder of E3 executive in • Over 16 years of • Investor marketing
Metals, industry upstream, banking experience in and communications
expert specializing and clean tech Alberta’s Energy professional that has
in the development industries. industry working for led teams that played
of major projects, Recognized as a some of Canada’s an integral function in
capital raising and Calgary “Top 40 largest oil and gas being named to the
M&A. under 40”. producers. TSX Venture 50TM.
Rowan Jastrzebska, P.Eng Chris Ward, P.Eng Peter Ratzlaff, P.Eng
• Manager, • Manager, Process • Senior Production
Technology Development Engineer
Development • Over 25 years of • Over 25 years of
• Chemical expert in experience operating, experience in
metallurgical and trouble-shooting, production &
lithium processes designing, budgeting, operations
across the globe; and executing mining engineering and
previously CTO with and mineral capital project
Desert Lion. processing projects. management.
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 4
Technical Advisory Board
Board & Advisors Dr. Shaun Presow Strong background in inorganic chemistry. Experienced in lithium ion
Battery cathodes battery cathode material specifications. Senior auditor for BASF.
Dr. Wayne Monnery Specialist in Chemical Engineering with 30+ years’ experience in
Oil and gas process engineering development and design in the chemical and
processing and H2S
Board of Directors petroleum industries.
Chris Doornbos, Founder of E3 Metals, industry expert specializing in the Dr. Mike Dixon Global expert in desalination and water treatment technology. CTO for
P.Geo development of major projects, capital raising and M&A. Desalination and WaterNEXT and CEO of IoT company Synauta.
water processing
John Pantazopoulos, Finance and capital markets executive with over 20 years'
CFA, ICD.D Corporate Advisory Board
experience in the energy industry and senior banking.
Kevin Reinhart An executive for 20 years at Nexen, a publicly listed major upstream oil
and gas company with an enterprise value of over $20 billion.
Kevin Stashin, Oil & gas executive with 40 years’ experience with large, Brad Wall Served as the Premier of Saskatchewan for over 10 years where he
MBA, P.Eng sophisticated companies and processes. Former CEO of
brought political and business leaders together as he implemented
NAL Resources.
creative ways to bolster the Province’s economic well-being.
Jean Croteau Financial markets expert with significant experience at large Canadian
Peeyush Varshney, Capital markets executive with 25 years' experience and has
B.Comm, LLB financial institutions.
been involved in capital raises with VCC in excess of $300
million. Tim Reimer Calgary based oil and gas expert in project management, joint
ventures, operations and commercial optimization of energy facilities.
Mike O’Hara, Oil & gas executive with 35 years’ experience in founding,
P.Eng
Paul Reinhart 30 years’ experience in providing early-stage project financing and
developing and managing profitable, growth-oriented oil and advisory services.
gas companies.
Steven Goldman President and CEO of Comstock Metals and founding partner of the
law firm Goldman Hine.
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 5
Lithium in the Battery Industry
Solidified with Price Drivers for EVs
Lithium Demand Increasing as Price of Battery
Electric Vehicles (BEV) Becomes More Competitive
with Internal Combustion Engines (ICE)
Growing BEVs Market Share Driving Lithium Demand
• EV battery costs have been steadily declining
• EV sales estimated to surpass ICE sales into early 2030s
• OEMs (Original Equipment Manufacturers) are anticipated to
manufacture more EVs to meet their emission targets due to strict
emission regulations
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 6
Lithium Market Dynamics
E3’s Plan for Production In Step with Demand Increase
• Strong demand growth
expected from EV sales and
battery capacity growth
• Lithium pricing set to
increase as demand is
expected to outstrip supply
• Anticipated supply
constraints likely to coincide
with E3’s planned production
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 7
Preliminary Economic Assessment
Clearwater Project
$1.1B
Production
Unit
Tonnes/year LHM
Value
20,000
NPV8%
Project Life Years 20 (Pre-Tax) – 32% IRR
Average Selling Price USD/tonne LHM 14,079
$820M NPV8% (After-Tax)
Average Annual Operating Costs (OPEX) Million USD/year 73.2 27% IRR
Cash Operating Costs USD/tonne LHM 3,656
$602M Initial CAPEX
Total Initial Capital Cost (CAPEX) Million USD 602
Average Annual EBITDA USD 208.6 $3,656/tonne OPEX
Pre-Tax NPV8% USD 1,123.1
After-Tax NPV8% USD 819.9
Pre-Tax IRR % 32
After-Tax IRR % 27
Payback Period (After-Tax) Years 3.4 Refer to E3 Metals’ News Announcement: November 16, 2020
All values in USD
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 8
Preliminary Economic Assessment
Clearwater Project
Brine Production
• 4 well pads, 42 wells for a total of ~130,000m3
• 15km underground pipeline to the central facility
• 100% disposal of lithium void brine
Lithium Extraction
• Pre-treatment for brine conditioning to the DLE plant
• Using E3’s DLE technology to create a high purity
concentrate solution (Li-IX)
Lithium Polishing and Production
• Refinement of the Li-IX into battery quality products
• Current goal is lithium hydroxide monohydrate
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 9
E3’s Competitive Advantage
DLE Technology and World Class Aquifer
Engineered For Purity
• Reduces impurities by over 99%
High Efficiency
• Low energy and high recovery
Rapid Extraction
• Shortens lithium extraction to hours
Enables Direct Lithium Hydroxide Production
• High purity concentrate enables battery quality lithium
hydroxide
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 10Innovation Combined with Existing Processes
DLE – Direct Lithium Extraction Technology
7,000,000 Tonnes Inferred LCE1 already identified
7th Largest Resource Globally
Ability to Expand Resources Across the Leduc and Nisku
Clearwater
Project
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 11Zero Emission and Zero Tailings
Simplicity of Design Leads to Full ESG
Zero Carbon Emissions
• By operating a gas fired power facility within the project site,
E3 can deploy local technology and expertise to sequester the
CO2 from the exhaust and dispose into the aquifer
Zero Tailings
• 100% of the brine brought to the surface for lithium extraction
will be placed back into the aquifer. The process has no impact
on fresh water aquifers.
Zero Fresh Water
• No fresh water consumption is anticipated; the project may
actually be a net producer of fresh water.
Minimal Land Use
• Only approximately 3% of land will be required relative to
similar sized evaporation and hard rock projects
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 12Industry Friendly Jurisdiction
The Alberta Advantage
Stable and Mature Available Government Supportive
Oil & Gas Infrastructure and of Economic
Regulatory Regime Expertise Diversification
• Lithium brine production is • Underutilized workforce with • Alberta is industry friendly &
largely similar to oil & gas applicable expertise entrepreneurially minded
• Lithium and oil & gas can • Repurposing oil & gas • Lithium production would be
operate concurrently infrastructure could minimize supported by a local
• The regulatory framework for environmental impacts workforce adding value to
oil & gas is well understood • Low-cost resource delineation Alberta’s economy
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 13Sources of Lithium Globally
Conventional vs. Direct Lithium Extraction (DLE)
Conventional Next Generation
Hard Rock Mining DLE
• Energy and capital intensive • Faster production with higher
recoveries
• Large environmental footprint
• No tailings
• Minimized freshwater use
Greenbushes, Australia
Standard Lithium, June 10 2020
Salars (Brines – Evaporative)
• Conventional evaporation
process for brine concentration
• Slow process with large
environmental footprint
Salar de Atacama, Chile
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 14E3’s Technology Advantage
Lithium Extraction Technology Comparables
Development Resource*
Technology Owner Mkt Cap2 Technology Type DLE Recovery Partner Company Partner/Owner Highlights
1
up to 99% Concentrates and Purifies
(TSXV: ETMC)
$149.5m Ion-Exchange ~in 1 hour Self-Owned in one step (up to 5300mg/L
with 99% impurity removal)
(OTC: EEMMF)
~85% Minimizes consumption of
Ion-Exchange/
$2.45b3
Absorbent ~in a few days
Self-Owned fresh water by recycling water
reaching over 60%
(EPA: ERA)
Molecular
>99% Produces up to 99.99%
N/A Recognition - ~in a few days - purity lithium
Private Technology (TSXV:LEXI)
>90% Produces up to 99.99%
$421.9m Ion-Exchange ~inE3 Metals vs Standard Lithium
Similar Project Type Demonstrate Growth Potential for E3
Type & Technology Type & Resource* Jurisdiction &
Company Stage Partner Recovery Partner/Owner Infrastructure
Enterprise Value** $149.5m
Inferred Resource* 7.0 million metric tonnes LCE1
(TSXV: ETMC) Ion-Exchange Alberta is industry friendly with
(OTC: EEMMF) historic social license
Direct
up to 99% Available infrastructure and
Brine ~in 1 hour Self-Owned expertise
Repurposing oil & gas
PEA infrastructure could minimize
environmental impacts
Enterprise Value** $425.9m
Indicated Resource* 3.9 million metric tonnes LCE
(TSXV: SLL) Ion-Exchange
(OTCQX: STLHF)
Saltworks’ crystallization plant is
Direct designed to take the intermediate Business-friendly jurisdiction
product made by SLL’s LiSTR DLE >90%
Brine process and convert it into a battery- ~inDevelopment Plan
Fully Funded
DLE Technology
In Development
Chemical Optimization
Finalizing the chemical development
for the direct extraction of lithium
Lab Pilot
Developing operational parameters Aquifer Management Plan
for the process conditions of the DLE
Field Pilot
Constructing and operating 2021
a field-based pilot in Alberta
Production Well Testing
Well flow testing for brine production
and search for +100 mg/L lithium
Initiate Resource Upgrade
Geology and geophysical detail review with
existing data for Measured and Indicated
upgrade area
17Lithium Hydroxide
2021 Continued
Scale up Production
As DLE process generating
increasing Li-IX™ solution
Demonstrate five9™
Outline battery quality
lithium hydroxide
Produce
Prefeasibility
Study
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 18Share Metrics
TSX-V: ETMC
Toronto Venture Exchange
OTC: EEMMF
(TSXV – Primary) ETMC
Share Price $3.10 FSE: OU7A
Cash Balance (approx.) $14,500,000
52-Week Price Range $0.19 - $5.37
Market Cap $149.5M
Shares Outstanding 50,164,031
Warrants 12,880,532
Options 3,213,000
Fully Diluted Shares 66,256,563
Board, Management & Associates
~15%
Ownership
* As of March 17, 2021; all values in CAD
E3 Metals Corp | Investor Presentation TSXV: ETMC OTC: EEMMF 19Suite 2300, 150 9th Ave SW
Calgary, Alberta T2P 3H9
Phone: +1 (587) 324-2775
Email: investor@e3metalscorp.com
Website: www.e3metalscorp.comYou can also read
