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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
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Focus on alternative fertilizers with low
capex cost to develop
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Properties close to provincial
infrastructure (Power lines, highway)
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Environmentally friendly, no chemical
or water requirements in extraction or
processing
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Strong Board and Management with
experience in South American
agribusiness and mineral sectors
Company History
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Incorporated in June 2013
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Management has previous success developing projects and relationships in
Argentina
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Management has intimate knowledge of local market
Founded to provide mineral sulfur fertilization and soil amendment to South
American Soils
Company Strategy
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Develop first agricultural gypsum property and establish market for the product 2015
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Secure additional properties in strategic locations throughout Argentina – 2015 2016
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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
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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
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Have LOI for acquisition of additional
property already in five KM from existing
mine site with significant deposit of
Agricultural Grade Gypsum
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Other gypsum mines in production in the
vicinity
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Property is adjacent to provincial highway
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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?
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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
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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
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•
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
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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?
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New laws in Argentina restricting deforestation for the creation of
new farmland.
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Argentina is currently developing regulations for the maintenance
of agricultural lands.
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Currently government is transitioning out to more business/
investment friendly government.
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Farmers are recognizing value of alternative fertilizers to maintain
and replace nutrients depleted from their soils.
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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
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Purchase price $850,000 USD
Vendor take back agreement
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$350,000 USD upon signing
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$250,000 USD 12 months from signing
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$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
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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
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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
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Begin setup of milling and bagging equipment and production testing
Accumulate inventory
Commence sales and deliveries to clients
Production Method
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Blasting of surface deposit to bring mineral to
rock size (60cm x 40cm x 40cm)
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Transport to crushing site via dump trucks and
later install conveyer system
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Crush rock through jaw and hammer crushers
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Storage of product in dry warehouse, in silo’s or
tote bags
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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
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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
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http://www.westernminerals.com
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*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 gregg@demetraminerals.com
t +1 (604) 229-9628
c +1 (604) 618-7051
www.demetraminerals.com