FINANCING OPPORTUNITY EnviroLeach Technologies Inc. Raise of up to $2.5 million

Transcription

1 FINANCING OPPORTUNITY EnviroLeach Technologies Inc. Raise of up to $2.5 million The Offering: Up to 10 million subscription receipts of EnviroLeach Technologies Inc. (the Company or ETI ) priced at $0.25 cents per subscription receipt Should the Offering be oversubscribed, management of the Company maintains the right to accept additional funds for up to an additional 20% of the Offering Upon the completion of the Arrangement (which will result in shares of ETI being listed for trading on the TSXV), each subscription receipt will automatically be exchanged into one share of ETI and one share purchase warrant Each warrant will entitle the holder to purchase one additional ETI share at a price of $0.50 for a period of two years from the date of the warrant s issuance The subscription receipts, since they are issued by ETI as a private company, have an indefinite hold period. However, they automatically convert into the units immediately prior to the completion of the Arrangement and become free trading since the effect of the Arrangement is to turn ETI into a reporting issuer The subscription proceeds will be held in escrow and released to the company only upon completion of the Arrangement. There is a drop dead date of March 31, 2017, after which, if the Arrangement has not been completed, the subscription funds will be returned to the subscribers The Company: EnviroLeach Technologies Inc. ( ETI ) is a private company with an objective to develop and market proprietary chemical formulas and systems used for the extraction of precious metals from ores, concentrates, tailing and E-Waste in an environmentally responsible and sustainable manner. ETI has developed a unique, cost-effective and environmentally friendly alternative to cyanide for the hydrometallurgical extraction of precious metals for the mining and electronic waste (E-Waste) management sectors. The patent-pending EnviroLeach process is safe, eco-friendly, and provides faster leach kinetics than cyanide on most ores, concentrates, tailings and E-waste. The Company has applied to the TSX Venture Exchange with respect to the listing of its shares for trading. The company anticipates a going public date in mid to late March, Click here to view ETI' s PowerPoint Presentation.

2 Use of Proceeds: Source of Funds Dollar Amount ($) Seed Private Placement 450,000 Private Placement that is the subject of this document 2,500,000 Total 2,950,000 Use of Available Funds Management fees and salaries for staff 1,140,000 Administration services and office 265,000 Laboratory and testing costs 504,000 Technology payments 442,000 Investor relations and shareholder communications 88,000 Transfer agent and regulatory fees 151,000 Professional fees (including fees associated with the Arrangement, the Seed Private 260,000 Placement and the Private Placement) Unallocated Working Capital 100,000 Total 2,950,000 The Arrangement: The Company has entered into an arrangement agreement dated January 23, 2016 (the Arrangement ) with Iberian Minerals Ltd. ( Iberian ), pursuant to which Iberian will carry out the previously announced spin-out of its X-Leach reagent technology (the Technology ) to ETI. Under the terms of the Arrangement, through a statutory plan of arrangement under the Business Corporations Act (Alberta) (the Arrangement ), Iberian shall transfer the Technology to ETI in exchange for i) 28 million common shares of ETI (each an ETI Share ), and ii) a promissory note in the amount of CDN$1.6 million made by ETI in favour of Iberian. Iberian s shareholders of record on the effective date of the Arrangement (currently expected to be on or about March 16, 2017) will receive, by way of a return of capital dividend, approximately one ETI Share for every 10 common shares held in Iberian for an aggregate total of 26 million ETI Shares. Corporate Structure: (Prior to this financing) Founders & Management 9,000, % Iberian Minerals Ltd. Shareholders 26,000, % Iberian Minerals Ltd. 2,000, % Total Issued & Outstanding: 37,000, %

3 Opportunity Overview: ETI announced a disruptive and innovative new technology that will revolutionize the processing technique for mining operations For over 100 years, conventional gold mining operations have relied heavily on cyanide leaching or cyanidation to extract gold from ores, concentrates, tailings and electronic waste. Both these methods present significant safety and environmental challenges resulting in permitting issues ETI S product is cost effective, environmentally safe and uniquely positioned within the sector with little or no competition Although new processes are being proposed on a regular basis, there have been no dramatic changes in the metallurgical techniques until now The EnviroLeach Process: The EnviroLeach process is similar to conventional cyanide circuits but much safer and simpler. It involves the dissolution of the precious metals followed by extraction using conventional methods such as electrowinning or carbon absorption. Some of the benefits include: reduced environmental impact accelerated permitting process broad applicability spectrum reduced operational costs access to mining areas that prohibit cyanide operates at near neutral ph and ambient temperatures reagent is reusable and offers a sustainable alternative Met-Solve Labs of Vancouver, BC, Canada has completed over 13 months of independent testing and analysis. The results of the testing concludes that the EnviroLeach process outperforms cyanide on both leach kinetics and total amount of precious metals recovered into solution on most materials tested. As such, it may well offer an effective alternative to the existing toxic methods employed by both sectors today. ETI has received an award in the amount of $45,000 from the University of British Columbia under the Mitacs Accelerate Program for the development of the Enviroleach non-cyanide based leach formula. Target customers: The Company intends to continue to develop and leverage relationships with established industry leaders Mining $80+ Billion market Large pipeline of qualified mines, properties and projects 90% of gold is produced using cyanide

4 E-Waste Recycling $10+ billion market Exponential growth curve Large pipeline of qualified E-Waste recyclers, Electronic Manufacturers, Electroplating Firms Leverage existing Investment Highlights High margin business model Sustainable, cash flow based growth profile Favourable industry risk profile through multi-faceted revenue model Currently limited or no competition Low entry level market valuation Executive Team and Directors ETI has the proven and experienced management team necessary to capitalize on the EnviroLeach process and drive the company to become a successful and integral part of the future global mining and E-Waste sectors. Duane Nelson, President, CEO, Director, Chairman of the Board - Founder and CEO of ETI. Founder of a number of successful Ventures, most recently he was the CEO and co-founder of Silvermex Resources Inc., a past TSX listed gold and silver producer. He is the founder of Quotemedia Inc., a successful financial market data company established in 1998, a leading provider of global financial stock market data for the Toronto Stock Exchange, NASDAQ OTC, and others. Ishwinder Grewal, B.A.Sc., M.A.Sc., P.Eng., Executive Vice President - President and founder of Met- Solve Laboratories Inc, over 20+ years experience in the metallurgical and mineral processing industry, focused on research and development, mineral processing and hydrometallurgical separation and metal recovery systems. Don Weatherbee, B.Comm., CFO years of finance and accounting experience, including over 10 years as a senior executive with KMC Mining Corporation Hanif Jafari, B.Sc., M.Eng., Chief Technology Officer - UBC PhD program in Mining and Mineral Process Engineering. Hanif was most recently an associate researcher with UBC for over two years. Mohammad Doostmohammadi, B.Sc., M.Sc., Senior Lab Technician - extensive experience in metallurgy and extractive chemistry and associated mineral processes. Greg Pendura, Director - more than 35 years of experience in founding, financing and advising emerging private and public companies. Mr. Pendura spent 12 years in the public sector with Resin Systems Inc. Kenneth C. McNaughton, M.A. Sc., Director - Vice President and Chief Explorations Officer for Pretivm

5 Resources. He is a professional geological engineer with 30+ years of global experience developing and leading mineral exploration programs. He was Senior Vice President, Exploration for Silver Standard Resources Inc. Jack Kiland, Director - over 50+ years experience in a number of successful start-up ventures. He was the co-founder and Managing Director of Casino Data Systems (CDS), a successful NASDAQ listed company which employed over 400 people in Las Vegas, NV. Darcy Thiele, P. Eng., MBA, Director - a member of the Association of Professional Engineers and Geoscientists of Alberta and Saskatchewan, with over 21 years experience as an engineer. Mr. Thiele received his MBA from the University of Regina and is the co-founder and principal of Pressure Solutions Inc. Mr. Thiele has extensive knowledge of the stock exchange rules and their mechanics. Please express your interest in participating in this financing and we will attempt to hold a position for you. Once you have been confirmed, we will provide you with a Subscription Agreement and Ascenta s Know Your Client information. This financing is scheduled to close on or about Friday, February 26, Please communicate any interest as soon as possible. Closing materials and subscription proceeds must be received no later than close of business on Wednesday, February 24, The Company has agreed to pay Ascenta a finder s fee of 8% cash and 8% compensation options for the financing. if you are interested in participating in the financing, please contact: Tracy Mabone x2 tracy@ascentafinance.com If you would like more information about the financing and/or ETI, please contact: Marshall Farris x1 marshall@ascentafinance.com Investments in private offerings are often highly speculative. The statements and statistics contained herein were obtained from sources believed to be reliable, but Ascenta cannot represent that they are accurate or complete. Consult with your investment advisor, legal or tax professionals before investing.