Agricultural Gypsum Fertilizer Maintaining and Reclaiming farmland in South America www.demetraminerals.com Forward-Looking Statements & Disclaimers This presentation contains certain “forward-looking statements”, including but not limited to, the statements regarding the Company’s overall objectives and strategic plans, timetables, mine operating costs, capital expenditures, work programs, exploration budgets and targets, and safety and sustainability initiatives. Forward-looking statements express, as at the date of this presentation, the Company’s plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. Forward-looking statements involve a number of risks and uncertainties, many of which are beyond the Company’s control, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results of future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of alternative fertilizers, mining industry risks and hazards, requirements of additional financing risk, risks of delays in construction, production or obtaining permits and other risks. The reader is cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake to update any forward-looking statement that is contained in this presentation. Company Highlights • Focus on alternative fertilizers with low capex cost to develop • Properties close to provincial infrastructure (Power lines, highway) • Environmentally friendly, no chemical or water requirements in extraction or processing • Strong Board and Management with experience in South American agribusiness and mineral sectors Company History • • Incorporated in June 2013 • Management has previous success developing projects and relationships in Argentina • Management has intimate knowledge of local market Founded to provide mineral sulfur fertilization and soil amendment to South American Soils Company Strategy • Develop first agricultural gypsum property and establish market for the product 2015 • Secure additional properties in strategic locations throughout Argentina – 2015 2016 • Develop additional properties through debt or equity financing - 2016 Management Gregg Jensen Sebastián Cattáneo Jeremy Wright (CPA, CMA) Chief Executive Officer, President, Director, Founder Vancouver, BC Chief Operating Officer, Executive Vice President, Director, Founder Buenos Aires, Argentina Chief Financial Officer Vancouver, BC Gregg has over fifteen years corporate finance, accounting and business management experience. Prior to founding Demetra, Gregg’s most recent corporate role was VP - Corporate Operations for a junior mining company specializing in fertilizers in which he lead presentations to investment groups, negotiated the acquisition of a mining concession as well the acquisition of a distribution partner. In addition, Gregg’s responsibilities included preparing economic models for potential projects, providing strategic recommendations to management and acting in a General Management capacity for the corporation. Sebastian has over fifteen years of experience in the oil & gas and mining industries along with a degree in environmental engineering from the University of Buenos Aires. Having lived in Vancouver for over ten years, Sebastian relocated back to Argentina in 2010 to be the Country Manager for a junior mining company specializing in fertilizers where he managed the start up of the company. As an Argentine/Canadian, Sebastian has a unique understanding of both Argentinean and Canadian business practices allowing him to bridge professional and cultural gaps effectively. As well, Sebastian has previous success developing Calcium Sulfate properties in Argentina and has gained a solid reputation with local governments and communities. Jeremy (CPA, CMA) brings more than 16 years’ experience to Demetra Minerals, having extensive negotiation training and a Bachelor of Arts, with honours in Environmental Economics from Brock University. Jeremy is currently the President & CEO at Seatrend Strategy Group, and previously spent 6 years in a senior role at Deloitte LLP working with senior management developing strategies and solutions to business issues mainly related to corporate finance, cost and risk management, and governance. Jeremy is also a Director of Good Ventures, the Canadian Freestyle Ski Association and Pacific Community Resources Society. Management continued Fernando Bacot Lindsay Nagle Vice President Business Development Buenos Aires, Argentina Vice President Corporate Development Vancouver BC Fernando has over seventeen years of experience in international trade advisory and business development, and has worked as a technical advisor and business liaison in the private and public sector, having successfully built a solid commercial network in recent years linked to the mineral fertilizer market, both in Argentina and abroad. Fernando’s experience in the public and private sector provides him an network to assist the company in negotiating acquisition of additional properties, favorable commercial terms on all our agreements as well smooth permitting applications with national and local governments. Lindsay has over 13 years of experience in energy and construction. He has introduced investors to various projects leading to total investments in excess of 10 million dollars Over his career Lindsay has developed an extensive network of business and investment professionals that have raised funds for multiple projects with over 100 million dollars in total investment. Lindsay has also partnered with individuals who have built and sold companies for over 250 million in value. Directors Dr. Patrick Moore Adam Sumel Vancouver BC Vancouver BC Dr. Moore is Co-founder and former President of Greenpeace, Author of “Confessions of a Greenpeace Dropout” Mr. Adam Ranjit Sumel currently is CEO of Multiform Harvest, a company focused on extracting fertilizers from waste water. Mr. Sumel also co-founded Sonic Technology Solutions Inc., (formerly, Sonic Environmental Solutions Inc) in 2000 and served as its Chief Executive Officer & Chairman from February 4, 2000 to August 31, 2009. He has over 21 years experience in the sales, service and financing areas with a number of businesses. He has been a Member of Advisory Board of Sonoro Energy Ltd. since April 2012. Dr. Moore has spoke extensively on industrial and environmental issues and has consulted with many multinational companies and organizations. He is a proponent of agricultural technologies and innovative ways to increase nutrition worldwide. Dr. Moore received his Bachelor of Science degree from University of British Columbia in 1969 and a PhD in Ecology in 1974. Advisors Isidoro Schalamuk Alejandro Massot Guillermo Fernandez George (Bud) Ivey Buenos Aires, Argentina Buenos Aires, Argentina Vancouver BC Buenos Aires, Argentina Lawyer, Partner of Estudio Randle, Buenos Aires former Professor of Law at Unversidad Torcuato Di Tella Law school in Argentina. Mr. Massot’s legal practice involves corporate, tax, and natural resources matters. Alejandro María Massot obtained his law degree from the Universidad Torcuato Di Tella in 2004, where he also completed the Masters in Law and Economics in 2007. In 2008 he graduated as an LL.M. from the University of Chicago Law School. Retired Chemical Engineer graduated at University of Buenos Aires (UBA) in 1978. Masters in Environmental and Toxicology at San Martin University in 2004. Successful entrepreneur with extensive experience in developing and putting into execution several industrial projects. Wide operational and management experience in positions with multinational and national companies including Johnson & Johnson. George (Bud) Ivey, B.SC.,CES, CESA, P.Chem., EP Dr. Schalamuk is Certified Geologist in Argentina having developed numerous technical reports for private companies and government agencies. Dr. Schalamuk is one of the most recognized geologists in Argentina. He was responsible for the discovery of Vale’s potash deposit in the Potasio Río Colorado in the province of Mendoza, Argentina. In addition Dr. Schalamuk has written more than 250 papers and is the author of four books as well as being the editor of the publication “The Gold Mining in Latin America”. Dr. Schalamuk is currently Emeritus Professor at the University of La Plata. He received a Doctorate in Geological Science from the University of Salamanca, Spain, in 1972 Bud has extensive knowledge of soil reclamation and remediation as well as South American business practices through his patented product, “Ivey-sol”. Bud has done soil remediation and environmental clean up projects in Argentina, Brazil and other areas throughout South America and the rest of the world. Properties • Secured rights of 30 Ha for immediate extraction adjacent to previously operating mine. Have exploration rights for remaining 470 Ha. NI 43-101 in progress • Have LOI for acquisition of additional property already in five KM from existing mine site with significant deposit of Agricultural Grade Gypsum • Other gypsum mines in production in the vicinity • • Property is adjacent to provincial highway • Currently in discussions to secure neighboring private property of 800 Ha Power line runs adjacent to highway and is two kilometers from proposed plant site Why Agricultural Gypsum? • • • • • • • Improved Soil Structure Increased water penetration in soils allowing for greater root penetration Reduces salinity Greater fertilizer absorption Reduces soil compaction Reclamation of over farmed lands to restore them to agricultural production Increase crop yield 10% - 30% Market Outlook • • • • Total agricultural land in target market is 128+ million hectares. Typical Fertilizer Gypsum application is 0.5 – 2 tons per hectares. Reclamation application of Gypsum is 5 – 10 tons per hectares. Total market potential for Agricultural Gypsum – 250+ million tons per year Argentina 20+ million hectares in agricultural production. 13+ million Ha saline soils. Brazil 100+ million hectares in agricultural production. Brazil has aluminum in their soils that Agricultural Gypsum can help remove. Paraguay 5+ million hectares in agricultural production. Paraguay currently has acidity, excess clay and soil compaction problems. Uruguay 1.5+ million hectares in agricultural production. Regulations on land maintenance. Bolivia 1.5+ million hectares in agricultural production. Historical Market Price • • Historical prices have kept pace with inflation Data is from industry professionals as no official market data is currently available $90.00 $67.50 Powder Granular $45.00 $22.50 $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Historical and estimated market demand • • • Demand is increasing due to need for increased sulfur fertilization and to protect soil structure Expected change to regulations requiring agricultural land maintenance Worldwide food demand requires farmers to increase production yields 4,000,000 3,000,000 2,000,000 1,000,000 Argen<na Paraguay Bolivia Brazil 00 2004 2007 2011 2013 2018 Why Now? • New laws in Argentina restricting deforestation for the creation of new farmland. • Argentina is currently developing regulations for the maintenance of agricultural lands. • Currently government is transitioning out to more business/ investment friendly government. • Farmers are recognizing value of alternative fertilizers to maintain and replace nutrients depleted from their soils. • Due to world recession and government policies business opportunities in Argentina are abundant and less expensive then previous years however this is expected to change. • Mining laws are protected from changes for next 15 years by constitution. Acquisition - Minerales Santiago SRL • • • • • Purchase price $850,000 USD Vendor take back agreement • $350,000 USD upon signing • $250,000 USD 12 months from signing • $250,000 USD 24 months from signing Current production 10,000 tons per annum Equipment capacity 40,000 tons per annum Motivated seller who is entering retirement Development and Construction Plan Q4 2014 • • • • Secure acquisition of Minerales Santiago SRL (Production capacity, 40,000 tons per annum) Begin production program Secured contract for 50,000 tons from a client in Paraguay Deposit on equipment for expansion of plant Q1 2015 • • • • Completion of NI 43-101 Secure milling and bagging equipment construction Secure purchase orders from clients Enter into transportation agreements with logistic companies Q2–Q3 2015 • • • Begin setup of milling and bagging equipment and production testing Accumulate inventory Commence sales and deliveries to clients Production Method • Blasting of surface deposit to bring mineral to rock size (60cm x 40cm x 40cm) • Transport to crushing site via dump trucks and later install conveyer system • • Crush rock through jaw and hammer crushers • Storage of product in dry warehouse, in silo’s or tote bags • • Package product in one ton bags Screen product to 2 – 4 mm (granular) or less (powder), oversized product is recycled back through crushing system Load packaged product onto trucks for delivery to customer Financial Information • • Seeking 5.1 million investment Average sale price of granular and powder - $75 per ton Local competitors (annual production) Estimated production & cost Asufrar (www.asufrar.com.ar) 25,000 tons at 20-25 USD/ton Recuperar S.R.L. (www.recuperarsrl.com.ar) 30,000 tons at 20-25 USD/ton Durlock (http://www.durlock.com/productos/fertilizantes.php) 20,000 tons at 20-25 USD/ton Gypsum Fértil (http://www.gypsumfertil.com.ar/) 15,000 tons at 20-25 USD/ton Yeso Agrícola Malargüe (www.yesoyam.com.ar) 15,000 tons at 20-25 USD/ton Pan American Fertilizer (www.pafertilizer.com.ar) 25,000 tons at 40 USD/ton Yeso ER (www.yesoer.com.ar) 40,000 tons at 20-25 USD/ton Minera Cañada Ancha (www.mineracanadaancha.com) 25,000 tons at 20-25 USD/ton Roca Fértil (www.rocafertil.com) 50,000 tons at 20-25 USD/ton (potential acquisition target) Total competitors production: 245,000 tons a year. An additional 30,000 tons are supplied by various minor/familiar companies. International Competitors • • • • http://www.westernminerals.com • *These companies are private and do not share production, pricing or cost data http://www.usagypsum.com http://www.gypsoil.com http://www.nationalgypsum.com For more information on Demetra Minerals, contact: Gregg Jensen, CEO e [email protected] t +1 (604) 229-9628 c +1 (604) 618-7051 www.demetraminerals.com
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