Tactical Resources Corporation · NASDAQ:TREO
Tactical Resources — SPAC Merger (August 2024)
33 slides from Tactical Resources's SPAC merger presentation, August 2024
Slide 1: Investor Presentation
Investor Presentation August 2024
Slide 2: Disclaimer
Disclaimer This investor presentation (together with oral statements made herewith, this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) among Plum Acquisitio
Slide 3: Disclaimer
Disclaimer The foregoing list is not exhaustive, and new risks may emerge from time to time. If any of these risks materialize or the Parties’ assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Many factors could cause ac
Slide 4: Today's Presenters
Today’s Presenters Ranjeet Sundher Jeet Basi Kanishka Roy Steven Handwerker Chief Executive Officer & Director President & Executive Chairman Chief Executive Officer Chief Financial Officer Tactical Resources Tactical Resources Plum Acquisition Corp. III Plum Acquisition Corp. III Select Company Exp
Slide 5: Key Investment Highlights
Key Investment Highlights Rare Earth Elements (REEs) Mining Asset and Company Strong position with geographic focus in the U.S. Significant Geo-Political and Supply Implications Enabling reduced dependence on China for REEs, critically needed for semiconductors, electric vehicles, advanced robotics,
Slide 6: Key Themes Driving Demand for Rare Earth Elements
Key Themes Driving Demand for Rare Earth Elements USA’s Reliance on China for REEs Imports(1) 2023 Non-Chinese Firms Lagging in REEs Production(2) 2021 Supplier Distribution for Rare Earth Element Imports 69% China 12% USA 20% 11% Burma China 5% Australia Other 2% Thailand 80% 1% India 1% Russia Glo
Slide 7: Transaction Overview
Transaction Overview Business Combination Structure • Plum Acquisition Corp. III (the “SPAC”) (NASDAQ: PLMJ) intends to complete a business combination (the “Business Combination”) with Tactical Resources Corp. (TSX.V: RARE; OTC: USREF; “Tactical”) • The Business Combination is targeted to close in
Slide 8: Tactical Resources Overview
Tactical Resources Overview
Slide 9: Tactical Resources at a Glance
Tactical Resources at a Glance 2022 Vancouver, Company 2018 Background Founded Signed Agreement Canada on Peak Project Headquarters Live Mining Location 68 Miles 2 Miles Southeast of Operations From Round Top Overview Sierra Blanca El Paso, Texas REEs Project Complex Rare Initial Extensive Peak Infr
Slide 10: Peak Project Video
Peak Project Video Introduction Video 10
Slide 11: Experienced Management Team
Experienced Management Team • Extensive background with 25+ years of experience successfully developing private and public companies in the technology, mining, resource, and Ranjeet Sundher software space Chief Executive Officer & Director • Established mining industry professional with 15+ years of
Slide 12: Rare Earth Elements Overview
Rare Earth Elements Overview Cerium (Ce) • Light rare earths represent the Lanthanum (La) lanthanides, the rare earth Neodymium (Nd) elements with the chemical group LIGHT Praseodymium (Pr) with the lowest atomic numbers Samarium (Sm) ‒ Used in cell phones, electric cars, medical equipment, Europium
Slide 13: Significant Global Demand for Rare Earth Elements
Significant Global Demand for Rare Earth Elements Beijing says state owns China's rare earth metals DOD Looks to Establish 'Mine-to-Magnet' Supply Chain July 1, 2024 for Rare Earth Materials March 11, 2024 The Coming Boom in Rare Earths The U.S., Australia, and The race to produce rare earth element
Slide 14: Rare Earth Elements Power Our Modern Economy
Rare Earth Elements Power Our Modern Economy Rare Earth Elements serve as indispensable components in a wide range of industries Rare Earth Elements are Critical to the Economy China’s Share of U.S. Rare Earth Elements Imports Total U.S. Imports • Rare Earth Elements are a group of 17 elements In me
Slide 15: Geopolitical Elements Underscore the Importance of REEs
Geopolitical Elements Underscore the Importance of REEs U.S. Department of Defense Looks to Establish ‘Mine-to-Magnet’ Supply Chain For Rare Earth Materials Rare Earth Elements Usage by Select Military Weapon Systems (1) Significant Government Support to Secure Critical Metals (5) 2018 The DOI class
Slide 16: Tactical's Key Strategic Corporate Pillars
Tactical’s Key Strategic Corporate Pillars Unlocking Clean-Tech REEs Solutions is critical for securing North America’s Strategic Future U.S. Advanced Clean Focused Projects Processing Texas based projects for Projects with potential Clean-tech driven with a increased American short-term and fast- f
Slide 17: U.S. Based Operations Create Significant Advantages
U.S. Based Operations Create Significant Advantages Department of Defense Department of Energy U.S. Congress ~$450M in Grants Since 2020 ~$41M in Grants Since 2021 Bipartisan Support & Legislation “DOD’s strategic investments are…a clear signal “The nation’s domestic supply of these critical “The pr
Slide 18: Texas Based & 100% North American Rare Earth Elements
Texas Based & 100% North American Rare Earth Elements U.S. Focus Strategic Site Location Round Top Peak Project Project Mining Friendly Texas Neighboring Round Top Project Extensive Infrastructure Over 50,000 Permits Granted 2 Miles Away from Easy Highway and in the Last 6 Years(1) Peak Project Rail
Slide 19: Peak Project Overview
Peak Project Overview Peak is one of only a few rare earth hard rock Direct-Leach-Extractable projects in the world Overview The Sierra Blanca range is a series of five volcanic peaks, or domes, of peraluminous rhyolite and rhyolite porphyry laccoliths emplaced in the • Located 68 miles southeast of
Slide 20: Site Overview
Site Overview Key Highlights Key Stats • Agreement with the Sierra Blanca Quarry (SBQ) that allows, for 286 3 a fee, access to and a right of first purchase option to tailings Acres Mining Leases material potentially enriched with REEs on the Sierra Blanca property, in addition to acquisition option
Slide 21: Peak Project - Sierra Blanca Quarry Overview
Peak Project - Sierra Blanca Quarry Overview Significant Existing Infrastructure Supports Near-Term Production Potential — Only One Step Left Until We Can Refine Rare Earth Elements — SBQ Flow Sheet SBQ Active Operations Long-term Storage Mining 2° Crush Zero-Value for SBQ Feedstock for Tactical ove
Slide 22: Sierra Blanca Quarry Overview (Cont.)
Sierra Blanca Quarry Overview (Cont.) Disciplined 3-tiered purchase agreement has potential to deliver progressive value Existing Fines Fines from Ongoing Entire SBQ Operation Stockpiles Active-Cut Operations & Mining Lease Note: For illustrative purposes only; actual boundaries may vary. 22
Slide 23: Project Timeline Expectations
Project Timeline Expectations In Complete Future Workflow Progress Initiated Technical Workplan Initial Scoping Study – Peak Project Design & Engineering Start-Up Facility • Engage metallurgical consultant • Initial independent scoping study • Demo plant construction • Commercialization & lab compil
Slide 24: Sampling Results
Sampling Results 40 Field Samples Collected Across SBQ Property, PK-1 to PK-40 Key Highlights • Comprehensive sampling campaign for initial assessment of metal content and variability • Broad sampling coverage balanced with detailed analyses methodology • Geologically and spatially robust • Covered
Slide 25: Key Takeaways from Initial Testing
Key Takeaways from Initial Testing Homogeneous and consistent grade distribution simplifies project development Key Takeaways Testing Results • Enriched quantities of almost all REEs detected in every sample 40 • Extremely low sample to sample 35 Rare Earth Elements (ppm) Rare Earth Elements grade 3
Slide 26: Initial Property Work Plan and Integrated Technical Studies
Initial Property Work Plan and Integrated Technical Studies Metallurgical test work currently in progress Sample Characterization REEs Hosting and Deportment Bench-Scale Leach Testing Fine Particle REEs and Li Extraction Bulk-Scale Leach Testing Coarse Particle REEs and Li Extraction Permeability Te
Slide 27: Transaction & Valuation Overview
Transaction & Valuation Overview
Slide 28: Illustrative Transaction Overview
Illustrative Transaction Overview Transaction Highlights Implied Sources & Uses Deal Structure Sources ($ Million) Uses ($ Million) • Tactical Resources shareholders rolling 100% of their equity and are expected to have a pro-forma equity ownership of 82.1% Tactical Resources Rollover $500.0 Equity
Slide 29: REEs Developers & Producers
REEs Developers & Producers Market Capitalization ($M) $4,500 $4,228 Developers $4,000 Producers $3,500 $3,000 $2,500 $2,149 $2,000 $1,646 $1,500 $1,000 $589 (1) $675 $409 $500 $253 $0 Note: FactSet Data as of 08/21/2024. Financial data in USD. (1) Represents Tactical Resources pro-forma enterprise
Slide 30: Resource Based Valuations
Resource Based Valuations EV ($) / Resource (Tonnes TREO) Multiples $1,400 $1,307 Developers $1,200 Producers $1,000 $879 $800 Average: $667 $600 $518 $492 $400 WA1 Resources has not released a Rare Earth $200 Element Resource $139 Estimate $0 Note: Enterprise Value are retrieved from FactSet as of
Slide 31: Valuation Benchmarking – Comparable Assets
Valuation Benchmarking – Comparable Assets Strong Jurisdiction Simple Metallurgy Simple Geology Existing Infrastructure Initial Operating Permits Feedstock Supply Feasibility Study Source: Pitchbook Data as of 8/21/2024.. 31
Slide 32: Risk Factors
Risk Factors This section summarizes certain of the risks that could affect the operations of the Company, Pubco or Tactical and is not exhaustive. The risks described below and the more extensive lists of risk factors set forth in the sections entitled “Risk Factors” in the Company’s Annual Report
Slide 33: Risk Factors
Risk Factors • Tactical’s business may be adversely affected if it is unable to secure additional funds to finance future exploration and development work. • Tactical may be adversely affected by fluctuations in demand for, and prices of, rare earth elements (“REEs”). • The success of Tactical’s bus