corporate presentation - iopw inc. one corporate... · economic and technical viability of the...

CSE: MDD | FSE:304 | OTCQB: MGPRF

1

Stock Symbols:CSE: MDDFrankfurt: 304OTCQB: MGPRF

Corporate PresentationFEBRUARY 2018

Shares outstanding: 44,077,283Reserved for Issuance: 11,796,382(as of Feb 8th, 2018)


FORWARD-LOOKING STATEMENTDisclaimer

Mag One is listed on the CSE with the symbol, “MDD”, the Börse Frankfurt stock exchange (“Frankfurt”) with the ticker symbol “304” and the OTCQB

with ticker symbol "MGPRF". The listings on the Frankfurt and OTCQB exchanges provide the company exposure to the European and U.S. markets

and potential investors. .Certain statements contained in this presentation may constitute "forward–looking statements" or "forward-looking

information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar

Canadian laws. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”,

“will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to

identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future

events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the

Company, the Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date

hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events

or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should

not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained

herein. This presentation does not constitute an offer of securities for sale in the United States. CSE has not reviewed this news release and does not

accept responsibility for the adequacy or accuracy of the content of this news release. . For additional risks and uncertainties that could impact the

Company’s forward-looking statements, please see the Companies filings with the CSE and which may be viewed at www.sedar.com.

Gillian Holcroft, Eng., M. Eng. and President of Mag One Products Inc. is a qualified person as defined in National Instrument 43-101 – Standards of

Disclosure for Mineral Projects, and has reviewed and approved all technical information in this presentation.

2

http://www.sedar.com/


3

“GAME-CHANGING APPROACH TO LOW-COST,

ENVIRONMENTALLY-FRIENDLY

PRODUCTION OF MAGNESIUM, INCLUDING

BY-PRODUCTS & CO-PRODUCTS”

3


HIGHLIGHTS

✓ LOW-COST, GAME-CHANGING TECHNOLOGY

✓ METAL WITH A HIGH GROWTH POTENTIAL

✓ ENVIRONMENTALLY SUSTAINABLE PRODUCTION

✓ A FOCUS ON RAPID COMMERCIALIZATION THROUGH

MODULAR EXPANSION & VERTICAL PRODUCT INTEGRATION

✓ EXPERIENCED MANAGEMENT/SCIENTIFIC TEAM

✓ RAPID PAYBACK OF CAPITAL INVESTED

4


WHY MAGNESIUM (Mg)?By 2025, on average, 100 pounds of magnesium will be used in each vehicle, up from 10 lbs in 2016.

“Special Report: Vehicle Lightweighting” Automotive World, Feb. 2016

• Mg is the lightest of all structural metals• 78% lighter than steel• 35% lighter than aluminum (Al)• Mg alloys: Comparable strength-weight ratio as Al• High vibration dampening capacity = Ideal for

high speed applications

• Global Primary Mg Production 1.01M tonnes in 2016, up 4% from 2015 (USGS)

• Global Primary Mg Demand will increase 6.4% annually to reach nearly 1.57M tonnes in 2026. (CM Group)

• Global Demand by Sector, 2016 (CM Group)• 37% Aluminum alloying (automobile, aerospace)• 32% Mg die-casting (automobile)• 15% Iron & Steel (desulfurization)• 10% Titanium production (metal reduction)• 6% Others (ex. specialty chemicals)

5


AUTOMOTIVE INDUSTRY

• 10% Vehicle Weight Reduction in gasoline-powered cars = 6-8% Fuel Economy Improvement (US DOE)

• Lightweighting of electric vehicles can improve range or reduce the size and cost of a battery. (US DOE)

• Ban of gasoline-powered cars on the way*• UK (2040)• France (2040)• India (2030)• Norway (2025)• Germany (announced but no target yet)

* http://money.cnn.com/2017/09/11/autos/countries-banning-diesel-gas-cars/index.html

6


MAGNESIUM TO REPLACE LITHIUM IN BATTERIES?

7

https://www.inverse.com/article/38897-magnesium-batteries-could-be-safer-than-lithium

https://newatlas.com/solid-state-magnesium-battery/52386/

https://naturalnews.com/2017-09-08-magnesium-battery-breakthrough-means-safer-batteries-that-wont-explode.html

https://www.inverse.com/article/38897-magnesium-batteries-could-be-safer-than-lithium

https://newatlas.com/solid-state-magnesium-battery/52386/

https://naturalnews.com/2017-09-08-magnesium-battery-breakthrough-means-safer-batteries-that-wont-explode.html


MAGNESIUM MARKET LANDSCAPE

8

• 85% of the world’s Mg metal supply is produced in China*. Approach is labor intensive & environmentally unfriendly (Large carbon footprint 26 T CO2eq/T Mg metal produced**)

• US-imposed anti-dumping tariffs (>100%) have discouraged the use of Chinese Mg in the U.S. (Price > US$4,000/T)

8

* Source: CM Group, IMA Conference May 2017** IMA Webinar, March 2017


WHY Mg IN QUEBEC? No Better Place…

• Access to inexpensive, already mined feedstock

• Access to low cost clean energy & established infrastructure (transportation, utilities, etc.)

• Access to lucrative North American automobile market (100 km to US border via rail & roads)

• Access to region targeted for funding (C$50 million regional fund) and investment by all levels of government• Current Pilot Work leveraged at > 40%

• Access to world-class universities

• Access to skilled labour & business friendly jurisdiction

9


INTEGRATED ROAD TO REVENUE

10

In negotiation


INEXPENSIVE, ALREADY-MINED TAILINGS

Two Sites Secured in Southern Quebec, Canada• Exclusive access to pre-mined serpentinite

tailings residues for CDN$1.00/tonne, payable only when used.

• Carbon-free source of Mg (ex. vs dolomite)

11

Metal Asbestos, QC50M tonnes

(Conceptual Grade/Qty)

Thetford Mines60M tonnes

(Historical Estimate)

Magnesium (Mg) 23.2% 23.0%

Silicon (Si) 17.9% 18%

Iron (Fe) 5.4% 5.75%

Nickel (Ni) 0.24% 0.23%

* Management’s decision to begin permitting efforts, as well as its commitment toprocessing these tailings to recover magnesium, silica and nickel have not been basedon results from a feasibility study of mineral reserves that would demonstrateeconomic and technical viability of the project. Without this study there is increaseduncertainty and increased economic and technical risks. Management does intend toengage an engineering firm to carry out a pre-feasibility study once the pilot planteffort is nearing completion and will use the pilot data as a basis for the study.


OUR FLAGSHIP PROJECT

12


COMMERCIAL HIGH PURITY MgO PLANT

FEATURES

• Low cost, novel, chlorine free, virtually zero waste, hydrometallurgical process

• 30,000 tpa high purity MgO

• 33,000 tpa high purity amorphous silica

• 5,200 tpa (dry basis) iron / nickel residue

• No environmental evaluation required

Commercial Plant - Target 2019-2020

• Business Case is viable on a stand-alone basis and does not rely on Mg metal production

STATUS

• Piloting at CIMMS in Asbestos, QC

13

Capacity 30,000 tpa HP MgO


HYDROMETALLURGICAL PILOT PLANT

• Phase I: 100 kg/hr Pilot Plant in operation

o Serpentinite to aqueous Mg compound

o High purity amorphous silica produced for qualification & off-take agreements

o Purity exceeds lab tests

• Phase II: Pilot Plant Q1 2018

o Mg compound to high purity MgO for qualification & off-take agreements

14


PRODUCTS FROM MgO PLANT

High Value Amorphous Silica

• Selling Price: US$200-$250/tonne

• High surface area – unique properties

• Replacement for silica fume in high performance concrete, polymers & rubber

• Global silica fume market: 1.1M tonnes/year*

• Qualification partners identified early on given timeframe to certify product (ex. 2-3 years for concrete)

15

High Purity Magnesium Oxide (HP MgO)

• Selling Price: US$600-900/tonne

• Minimum 98.5% purity

• Offtake partners already identified and awaiting material to qualify from pilot plant

• Market demand confirmed (USGS)

• US 2015 consumption 333,000 tonnes MgO*

• US 2016 imports 183,000 tonnes MgO*

• Applications include: flame retardant in plastics, cables; steel fluxing; additive for rubber, cement, wastewater treatment

* Caustic-calcined or specialized MgO * Santosh et al – 2017


COMMERCIAL PRIMARY Mg PLANT FEATURES• Proprietary pyrometallurgical process

initiated by Dr. James G. Blencoe (CTO)• Aluminothermic reduction of HP MgO• 5,000 tpa Mg metal modules

(repeatable)• 7,000 tpa calcined (alpha) alumina• No environmental evaluation required

under 20,000 tpa metal

STATUS• Bench scale validation Q1 2018• Pilot scale apparatus – second half of

2018• Qualification & offtake agreements• Mg market > 1M tonnes• 2.8M tonnes specialty grade alumina sold

annually worldwide (Source: Alteo)• Alumina markets include: high performance

ceramics: refractories, electrical insulation, armour protection

Capacity 5,000 tpa Mg Metal

16


Parameters Pidgeon Electrolysis Mag One

Carbon footprint (T CO2eq/T Mg metal)* 26 18 5-8

* Excluding credits for by-product sale and improvement to raw goods sourcing

• Essentially zero waste• No environmental evaluation required

17

ENVIRONMENTALLY SUSTAINABLE


COMPLEMENTARY PROJECTS

18

In negotiations


COMMERCIAL SECONDARY Mg ALLOY RECYCLING

FEATURES

• JV in negotiations with Quebec-based Mg alloy recycling technology company –Expected closing Q1 2018

• Unique, low cost processing technology

• Relationships with Mg scrap suppliers and alloy customers already established

• Strategic acquisition to enter Mg market ahead of primary Mg production

• Operational in Q4 2018 (target)

19


COMMERCIAL MgO WALLBOARD ASSEMBLY PLANT

• $1B addressable market in North America

20


MAGPOWER FUEL CELL

• MagPower Systems acquired in 2016• Proprietary magnesium-air fuel cell• Target application – emergency

power in remote situations• Lifeboats• Mining• Disaster Relief

• Strategic commercialization partners being identified

• Scale-up to 100W to be initiated –working with industrial design group

• Ready-to-use• Add water• Make electricity• 20-yr shelf life (Dry)• No noxious by-products• Lantern (6W) ready for

commercialisation

21


James G. Blencoe, Ph. D. | Chief Technology Officer40 years in advanced chemical productionPublished more than 50 peer-reviewed articles and lead author of 3 patents on magnesium24 years at Oak Ridge National Laboratory

Nelson M. Skalbania, B.Ap.Sc., M.Sc., P.Eng. | Chairman/CEOSerial entrepreneur, professional engineerOwned and operated real estate properties all over North AmericaInvolved in over 100 businesses in technology, mining, manufacturing, oil & gas, etc.

Gillian Holcroft, B.Eng., M.Eng. | President~30 years in advanced mineral, metallurgical and chemical processingLed effort to commercial deployment of new innovations with US DoDLed effort to bringing technology company public

Rod Burylo, CIM | Director~30 years in financial services industryExpert in corporate ethics, compliance and governanceBusiness author, media contributor, teaching internationally for past 15 years

BOARD OF DIRECTORS


David Dreisinger, PhDScientific AdvisorProfessor, University of British Columbia (UBC)Industrial Research Chairholder, Hydrometallurgy

23

TEAM

Mirza Rahimani, CAAdvisorExpertise in corporate control and compliancefor public companies

Yu-Mei Han, PhDTechnical Director, CIMMSMetallurgist with background in hydrometallurgy,pyrometallurgy and materials.

Tom Whitton, EngCommercialization LeadChemical engineer & business developmentspecialist, bringing new innovations to market

George Hochwimmer, PhDAdvisorFinancial Advisor for Start-Up/Growing CompaniesFounder, General Research GbmH

Arnold Ross, MEnv, BScEnvironmental ConsultantExpertise in permitting and carbon marketsCurrent Director of Technology for PureSphera


KEY TAKEAWAYS

✓ LOW-COST, GAME-CHANGING TECHNOLOGY

✓ METAL WITH A HIGH GROWTH POTENTIAL

✓ ENVIRONMENTALLY SUSTAINABLE PRODUCTION

✓ A FOCUS ON RAPID COMMERCIALIZATION THROUGH

MODULAR EXPANSION & VERTICAL PRODUCT INTEGRATION

✓ EXPERIENCED MANAGEMENT/SCIENTIFIC TEAM

✓ RAPID PAYBACK OF CAPITAL INVESTED

24


MAGBOARDS * MAGNESIUM OXIDE * MAGNESIUM METAL

#145 925 Georgia Street West, Vancouver, B.C. CANADA V6C3L2

T: +1.604.669.4771 F: +1.604.669.4731

E: [email protected]

[email protected] [email protected]

www.MagOneProducts.com

CSE: MDD FRANKFURT: 304 OTCQB: MGPRF

25

http://www.magoneproducts.com/

corporate presentation - iopw inc. one corporate... · economic and technical viability of the...

Documents