production, exploration, optionality - meridian mining · 2016. 11. 14. · cagr by 20202 1.2...
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PRODUCTION, EXPLORATION, OPTIONALITY
1
Some statements in this presentation contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include,
among others, statements with respect to the Company's plans for exploration and development of the Brazil properties and potential mineralization. These statements address
future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to
be materially different from any future results, performance or achievements expressed or implied by the statements. Such risk factors include, among others, failure to obtain
regulatory approvals, failure to complete anticipated transactions, the timing and success of future exploration and development activities, exploration and development risks, title
matters, inability to obtain any required third party consents, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions,
relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices and one-time events. In making the forward-
looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the proposed exploration and development of
mineral projects will proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3) any additional financing needed will be available on
reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future
events or otherwise except as otherwise required by applicable securities legislation.
The Company cautions that it has not completed any feasibility studies on any of BMC's mineral properties, and no mineral reserve estimate has been established. Because the
Company production decision is not based upon a feasibility study of mineral reserves, the economic and technical viability of the property has not been established. The potential
quantity and grade of resource targets are conceptual in nature. There has been insufficient exploration to define a primary vein mineral resource and that it is uncertain if further
exploration will result in the target being delineated as a mineral resource.
QUALIFIED PERSON
The technical information about the Company's mining activities has been prepared under the supervision of and verified by Dr. Adrian McArthur (B.Sc. Hons, PhD. FAusIMM), a
consultant to Meridian Mining, who is a "qualified person" within the meaning of National Instrument 43-101.
FORWARD-LOOKING STATEMENTS
2
COMPANY HIGHLIGHTS
Early-stage
opportunity in
metal-rich but
underexplored
region of Brazil
Large land
package with
multi-commodity
exploration
upside
Established CSR program generating widespread community acceptance
Experienced management and technical team with significant regional expertise
Growing pilot production of high-grade manganese with direct sales to local customer base
Multiple catalysts for growth
EMERGING MULTI-COMMODITY MINER
3
+ + +Manganese Gold Tin
Pilot Production
4
140,000 ha land package
Aerial survey:
62 target areas,
5 manganese targets
211 kms of strike identified
Supporting expansion to
50,000+ tonnes production
EXTENSIVE LAND POSITION
Considerable exploration upside
Metal-rich region of
Brazil with long history
of production
MINING-FRIENDLY JURISDICTION
5Significant project de-risking already completed
Access to infrastructure;
maintained roads, fresh
water on site, electricity, road
and river market access.
Favourable royalty
structure
Solid relationships
with regional and
national governments,
local community
Skilled local labour force, compulsory education and technical colleges
MORE THAN STEEL
6
7
SPECIALTY APPLICATIONS FOR PREMIUM GRADE MANGANESE
Key component in alkaline
batteries
Global alkaline battery market
in excess of
US$40 billion
Potential in high capacity/
energy density rechargeable
batteries (Li-ion)
Brazil produces 30% of the
world’s soybean crop
Soybeans require Mn as a
key micronutrient
Food products require high
purity Mn with low heavy
metal content
Trace element required for
proper development
Food products require high
purity Mn with low heavy
metal content
Batteries Emerging Uses Fertilizer Animal Feed+ + + +
New and growing markets
Pigments
Water purification
Welding
~50 million tpa1Specialty Applications for High-Grade Manganese (per cent)Global manganese oxide
consumption
8Early production drives cash flow and further de-risks project
6.8%CAGR by 20202
1.2 million tpaSpecialty applications for 50%+ manganese
63%
BATTERIES EMERGING
USES
FERTILIZER ANIMAL FEED
21% 10% 6%
1 Source: Roskill
2 Source: Manganese: A Global Strategic Business Report, May 2014 – Global Energy Industry Analytics Inc.
MORE THAN STEEL – THE PREMIUM MANGANESE MARKET
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PREMIUM PRODUCT, PREMIUM PRICE
Company Sales vs CIF China in US$/dmtu
$4.12
$3.03 $3.02 $2.48 $2.43
$3.78 $3.50
$5.67
$5.10
$4.32
$3.62 $3.25
$3.96 $4.33
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016
Benchmark 44% Mn CIF China Company Sales
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COMMERCIAL SUCCESS FACTORS IN PLACE
Building strong customer relationships
Established and
growing customer base
for premium product
Early production
(up to 50,000 tpa)
fully committed
Current demand for
high-grade product in
Brazil 100,000 tpa
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LEADER IN THE PREMIUM MANGANESE GLOBAL MARKET
Premium Grade Market
Batteries, Fertilizer, Pigments, Animal Feed
45% Commercial high grade
Manganese
Grade
BMC
Woodie Woodie
Theoretical production grade limit for pyrolusite manganese
Production
Tonnage (Mt)
Early in the production cycle – long potential premium-grade mine life
GROWING EARLY PRODUCTION
2016 production capacity
of 30,000 tpa
Typical geology for mine sites
Dry screening has increased
production to 1,000t per
week since installation in
Q2 2016
12Early production drives cash flow and further de-risks project
Q1
1,3
82 2
,55
8
Q22
,14
3
5,2
93
Q3
6,9
76
13
,44
5
As Mined and Washed
Average Grade
36.9%Processed
Average Grade
51.9%
BRECCIACOLLUVIUM AND CLAY
ALTERED GRANITE
Growing Manganese
Production (tonnes)
2015
2016
13On track to meet or exceed 2016 sales and production targets
30,000 tonnes2016 production target
50,000 tonnes2016 sales target
Produced + on-hand inventory
2016 MANGANESE PRODUCTION AND SALES TARGETS
26,259 tonnes produced
25,660 tonnes produced 10,507 tonnes committed
88% of target achieved
through October 31, 2016
72% of target achieved
through October 31, 2016
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NEW PILOT PLANT
Grows capacity to 50,000 tpa
Expected
commissioning
in Q1 2017
Supports mining of
colluvium (surface) and
primary vein material
Multiple catalysts for growth
MULTI-COMMODITY EXPLORATION UPSIDE
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+ + +Manganese Gold Tin
Mapping
TRENCHING – 14,500 METRES
DRILLING – 341 HOLES/17,000 METRES
Pan concentrate sampling
SAMPLING – 450 SAMPLES
Geochemical work
SOIL SAMPLES – 3,100
• Identified colluvium for early
production
• Targeting vein systems for longer-
term production
• Produce NI 43-101 resource report
• Identified anomalies in drainage
• Enhancing target definition for
future drilling
• Identified anomalies through
stream/soil sampling
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NEW GOLD PROVINCE
Initial stream sediment
sampling program
450 pan concentrate samples
Extensive drainage anomalies
up to 430 counts
Bedrock targets emerging;
3,100 soil samples;
peak values of 394ppb Au
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FOLLOW-UP ACTIVITIES
Blocks with quartz-sulphide and
quartz-hematite alteration
observed in catchment areas
Sources areas are poorly
exposed
Trenching, ground geophysics
and drilling to follow
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GOLD EXPLORATION MAP
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TIMELINES
Multiple near-term value creating milestones and catalysts for growth
2016 2017 2018
Milestone Q4 Q1 Q2 Q3 Q4 Q1 Q2
Mapping, trenching and drilling to confirm further
manganese mineralization
NI 43-101 Technical Report
Proposed restructuring and business combination
with Ferrometals and Cancana
Soil geochemical and pan concentrate program
to identify gold mineralization
Complete construction of 50,000 tpa pilot plant
Tin exploration program
Complete NI 43-101 compliant Preliminary Economic
Assessment Report
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MARKET DATA
TSX-V: CNY
$0.40
29,839
$0.13 - $0.52
$33.2 million
82.9 million
19.97%
Ticker
Share Price (Oct 31, 2016)
Avg. daily 3-month volume
52-week range
Market Capitalization
Shares Outstanding
Ownership of BMC
Consolidating 100% ownership of BMC in Meridian
TSX-V: MNO
Trading in
Meridian to
commence
following
completion of
plan of
arrangement
151.1 million
100.00%
Ticker
Share Price
Avg. daily 3-month volume
52-week range
Market Capitalization
Shares Outstanding (pro forma)
Ownership of BMC
Post plan of arrangement
PRINCIPAL PURPOSES OF FUNDS
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Estimated Budget Expenditure (1) USD
$8,000,000(2)
$5,500,000
($5,250,000)
($1,000,000)(3)
($250,000)
($3,000,000)
($1,250,000)
($1,500,000)
$1,250,000
Expenditure
Available Funds at Closing
Revenue – Manganese Operations
Production Costs – Manganese Operations
Exploration & Evaluation – Phase 1
CSR
Corporate – General & Administration
Brazil – General & Administration
Capital Expenditures
Balance Outstanding
(1) There may be circumstances where, for sound business reasons, a reallocation of funds may be necessary.(2) Composed of US$1,000,000 working capital, post closing costs, and the US$7,000,000 loan facility(3) As recommended in the NI 43-101 BMC Technical Report.
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MANAGEMENT TEAM
Anthony JulienPresident & Chief Executive
Officer
Anthony has a proven track record as an
entrepreneur focusing on growth and innovation
and has built and sold several companies. As
Meridian’s CEO, he aims to create a diversified
group focused on producing and selling minerals to
a premium high-value market.
Jonathan RichardsChief Financial Officer
Jonathan brings over a decade of resource-
focused accounting and auditing experience to his
role as CFO. He has accumulated extensive
experience with TSX and Venture-listed
companies, as well as numerous private
companies all over the world.
Jason OllivierChief Marketing Officer
Jason has a background in media having held
senior positions in corporate communication and
television. Before joining Meridian, he consulted
for a select group of Australian companies,
developing marketing and sales strategies
targeting local and international markets.
Carlos BragaChief Operating Officer
Carlos has held a number of senior positions in the Brazilian mining and
fertilizer industries, specializing in strategic planning and implementation.
Formerly a senior associate at AT Kearney, he became the VP of
Operations at MBAC Fertilizer in 2009.
Mike BennettGeneral Manager, BMC
Mike has worked as Chief Geologist and Country Manager and in 2008
was responsible for overseeing projects in Brazil and Mexico for ECI. He
has held senior local government appointments in South America and
brings a deep understanding of South American culture.
Adrian McArthurChief Geologist, Qualified
Person
Adrian has over 20 years in exploration, resource delineation and project
generation for industrial minerals, gold and base metals. He leads a
team of 13 geologists in a multi-commodity exploration program which
has identified a number of emerging gold and tin targets. Adrian is the
qualified person for Meridian.
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BOARD OF DIRECTORS
Barry Bolitho Chairman of the Board
Barry has over 30 years of experience in the
minerals industry and has held a number of
executive management positions in the resource
sector, including board positions with both
producing and exploration-stage companies.
Mr. Anthony JulienCEO, President and Director
Anthony has a proven track record as an
entrepreneur focusing on growth and innovation
and has built and sold several companies. As
Meridian’s CEO, he aims to create a diversified
group focused on producing and selling minerals to
a premium high-value market.
Doug Willock Director
Doug has over 30 years of experience in both
corporate finance and junior mining. He founded
and was CEO of Polar Star Mining, a junior mining
company focused on exploration in Chile.
Peter WeidmannDirector
Peter has over a decade of private equity experience as a fund
investor and in direct co-investments, including several years with
Macquarie Bank. He was recently an Investment Director with BTV
Group in Munich and is currently a Director with The Sentient
Group.
Stephano HaverDirector
Stephano spent eight years at ABN AMRO Bank and ABN AMRO
Capital. In 2007, he coordinated the Private Equity group’s spin-out
into AAC Capital Partners. He is currently responsible for the
Private Equity Business Unit at Orangefield.
Angelina MehtaDirector
Angelina has worked Rio Tinto's subsidiary, Iron Ore Company of
Canada, and has held roles at BMO Financial Group in Toronto,
and Lafarge and CN Railway in Montreal. She is a founding
member of Women in Mining (WIM) Montreal and a member of
CIM.
24
INVESTMENT HIGHLIGHTS
Extensive growth
potential with multi-
commodity exploration
upside (gold, tin)
Highest grade
manganese producer
in Brazil
Growing revenue-
generating, early
stage production
Emerging specialty
markets for
premium-grade
manganese
Multiple near-term
value creating
milestones
Significant project
de-risking already
completed
Established
customer base with
pilot production fully
committed
APPENDIX
25
26
PILOT PLANT FLOW SHEET
27
HIGHEST GRADE MANGANESE* PRODUCER IN BRAZIL
25%
30%
35%
40%
46% 46%
>50%
Va
le 1
MS
M-S
err
a d
a M
oe
da
Min
eirã
o P
ed
raM
oe
da
Va
le 2
Va
le 3
Bu
ritira
ma
BM
C
*High tenor Pyrolusite Cryptomelane manganese oxides
Premium grade Mn
1
2
3