North America’s Premier Undeveloped High-Grade Salt Project!
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THE ATLAS SALT “SCORECARD”
Near-Term Catalysts & Top Dozen Reasons
Atlas Brings The Power of SALT to Investors!
1
World Class Management Team
The CEO of Atlas Salt (TSXV: SALT; OTCQB: REMRF) is Rick LaBelle who has spearheaded world-leading companies in the mining sector during an impressive three decades at the executive leadership level. From operational expertise to M&A success ranging from private equity to the public markets, LaBelle has a proven track record of de-risking opportunities and unlocking shareholder value, giving investors a high degree of confidence. Most recently he was President & CEO of Dumas Mining (2017-2022), one of the most respected underground mine builders in the world. LaBelle is working alongside Atlas President Rowland Howe, renowned for his success at the Goderich Salt mine. This “dynamic duo” is assembling a team of other top achievers in the mining sector to help turn Atlas Salt’s Great Atlantic into the most profitable, environmentally friendly, and safest state-of-the-art underground salt mine in the world following release of a robust independent Great Atlantic Feasibility Study.
2
“Mr. Salt”
Rowland Howe is known as “Mr. Salt” for an illustrious three-decade salt sector career highlighted by many years of success at NYSE-listed Compass Minerals’ Goderich mine. In fact, it was during Howe’s tenure as mine manager that Goderich became the biggest underground salt mine in the entire world. During that time, Compass’ stock (NYSE: CMP) soared to $100 a share. Howe is now President of Atlas, helping guide a dramatic discovery of more than 1 billion tonnes of a remarkably homogeneous and shallow high-grade salt resource.
3
North America’s Premier Undeveloped Salt Project
An independent Feasibility Study and PEA-level expansion case released August 28, 2023, gave Great Atlantic a pre-tax $1.0 billion (CDN) NPV at an 8% discount (NPV-5 is $1.9 billion) and a 23% IRR, based on a conservative production model of 2.5 Mtpa over 34 years. Meanwhile, at 4 Mtpa in the expansion case based on a Preliminary Economic Assessment level analysis, Great Atlantic has a pre-tax $2.0 billion (CDN) NPV at an 8% discount (NPV-5 is $4.1 billion), and a 28% IRR, over a mine life of 47.5 years. Cumulative pre-tax cash flow under the expansion case would be $17.8 billion over 47.5 years out of cumulative total revenue of $24.75 billion. Direct capital costs for Great Atlantic are pegged at $302 million for the 2.5 Mtpa feasibility case.. Great Atlantic is located immediately beside a deep water port for easy and efficient access to key Canadian and U.S. markets, another reason this project would be a low-cost leader utilizing a Q3 2023 feasibility cost basis of $22.70 per tonne FOB originating port.
4
Top Tier Deposit
Great Atlantic is at an unusually shallow depth for a salt deposit, starting at a depth of just 656 feet (200 meters). The thickness of the salt bed at Great Atlantic is also notable compared to Goderich and others. The last drill hole at Great Atlantic, reported March 23, 2023, returned just over 1000 feet (305.5 meters) of gross massive salt grading an average of 95.6% NaCl.. Great Atlantic has given every indication that it has the potential to become a new low-cost producer of high-grade rock salt in North America. Indicated Resources are 383 million tonnes grading 96.0% NaCl while Inferred Resources total 868 million tonnes grading 95.2% NaCl. Probable Mineral Reserves, included within these resources, are 88.1 million tonnes grading 96.0% NaCl.as per the recently completed feasibility study by SLR as reported by Atlas on August 28 2023.
5
Salt is a Hot Sector
Unlike traditional commodity sectors, the salt industry is recession-resistant. It has also produced some exciting M&A activity in the last few years, with privately-held Stone Canyon Industries elbowing its way into the sector against the likes of Compass and Cargill with over $5.2 billion (USD) in acquisitions (Koch Industries, thorough a subsidiary, recently acquired 17% of Compass for $252 million USD, so the two biggest private companies in America are in the salt business!). Efficient underground salt mines are known to produce low-beta cash flow for generations. Compass’ Goderich, serving the de-icing needs of much of America’s Great Lakes region, has been producing for over 60 years, and helped drive Compass’ salt segment revenue in the quarter ending Dec. 31, 2022, to $308.1 million (USD) with operating earnings increasing 20% year-over-year to $47.1 million (USD). That’s after six decades of mining at Goderich!
6
Security of Supply Problem
According to the U.S. Geological Survey, the amount of salt used on U.S. roads ballooned from 1 million tons in 1954, to 10 million tons in 1985, to around 24 million tons a year by 2019 (nearly 150 pounds per American) as drivers demanded increasing levels of safety and convenience. However, due to ageing mines ( and no new mines having been built in the U.S. in more than 22 years), East Coast of North America is now actually facing a significant domestic production shortfall of high-grade rock salt! This has forced the market to import millions of tons of this important commodity each year from Chile and North Africa (mostly into the Northeast). Supply chain issues, sharply higher shipping costs, and potential jurisdictional risks pose a threat to those overseas imports. And it’s not like there are multiple American or Canadian salt deposits that have the potential to be quickly developed and turned into mines –the leading candidate is Atlas’ Great Atlantic, which makes it a potential acquisition target. In today’s world there is real demand for an asset that can literally produce decades of strong low beta cash flow.
7
America’s Rock Salt Solution – Great Atlantic
The East Coast shouldn’t have to rely on imports to help keep the roads and highways safe. Atlas Salt’s massive discovery of high-grade rock salt on the west coast of Newfoundland is in the heart of the North American road salt market, just a few days’ shipping distance from Boston, for example. Newfoundland is regarded as one of the friendliest mining jurisdictions in the world by the Fraser Institute’s survey of global mining jurisdictions. It’s a safe place to invest and a reliable supplier of resources to the rest of Canada and the United States.
8
Salt Helped Build Texas and America!
The importance of salt is demonstrated in different ways. In Texas, for example, two important facts: 1) Salt domes changed Texas history – the massive discovery of oil on top of one such dome at Spindletop, south of Beaumont, sparked last century’s great oil boom which changed America; 2) U.S. Strategic Petroleum Reserves are stored in underground salt caverns at two major oil storage sites in Texas (Bryan Mound and Big Hill). Salt caverns, given their unique characteristics, are expected to play a huge role in underground energy storage in the years ahead. Notably, Atlas gives investors a second major opportunity with its significant (27%) indirect ownership (through Triple Point Resources) of a world class salt dome 15 km (10 miles) south of its Great Atlantic deposit.
9
Salt Keeps Us Alive!
Salt has created fortunes, provoked revolutions, directed economies, and enlivened our recipes as outlined in Mark Kurlansky’s New York Times’ bestseller, “Salt: A World History.” Salt is a mineral composed of sodium chloride (NaCl), and it’s used in many everyday products and sectors we take for granted (food, agriculture, water treatment, chemical, de-icing). Our bodies couldn’t survive without salt, but salt keeps us alive in more ways than one. The biggest single use of salt in Canada and the U.S. is for de-icing roads, highways, sidewalks and parking lots. It’s a large recession-proof market with decades of consistency throughout every economic cycle. Statistics show that road de-icing salt reduces collisions by up to 88%. in winter driving conditions.
10
Substantially De-Risked Across Multiple Metrics
Salt mines are vastly different than traditional metal mines – they are relatively predictable and can produce for generations through relatively straightforward, environmentally friendly mining without the use of chemical processing. The risks of execution are lower with a salt project vs. a regular type of metal mine. Salt itself is recession resistant while Atlas has also been substantially de-risked across many key metrics. SLR, a global leader in engineering and advisory services, conducted a rigorous independent review of the Great Atlantic Project leading to its recently released updated Mineral Resource Estimate and Feasibility Study including a PEA level production expansion case scenario.
11
Environmentally Friendly
Great Atlantic would feature environmentally friendly straightforward processing, electrical power, operating very much like a “Salt Factory” with the potential to have net carbon benefits compared to traditional mines. Unlike traditional metal deposits, no chemical processing is involved with an underground salt mine and practically all “ore” is shipped directly to market. New technology such as “continuous miners” cut the salt underground (no drilling or blasting). It is then screened to get it to the right particle size before being dropped onto a conveyor belt that brings it to surface. Processed salt is then delivered to the nearby port by conveyor. Replacing overseas imports with Great Atlantic production aids in the battle to reduce global carbon emissions.
12
Triple Point/Fischell’s Spinout
To unlock the value of Atlas’ Fischell’s Salt Dome (a separate feature from Great Atlantic), and its potential to help drive the recently signed Canada-Germany Hydrogen Accord for the west coast of Newfoundland, Atlas in 2022 spun out Fischell’s into Triple Point Resources which plans to list on a North American stock exchange. Atlas is Triple Point’s largest single investor with 27.5 million shares. Salt domes have multiple uses and are now being increasingly targeted for storing hydrogen safely and efficiently underground.
13
Financial Power
Atlas is in a strong financial position with approximately $15 million CDN in cash ($11 million USD) and no debt, as per the latest financials ending June 30, 2023, thanks to a series of increasingly higher-priced private placements with strategic investors since 2021 and the exercise of almost all of the company’s warrants. In January 2023, Atlas raised approximately $10 million CDN (~$7.25 million USD) at $2.00 CDN (~$1.50 USD). This kind of financial strength will help ensure steady news flow with the company also embarking on an international market awareness campaign to highlight the uniqueness of North America’s premier undeveloped salt project.
14
Share Structure/Performance
Atlas Salt has only 95 million shares outstanding, dominated by strong retail investors, management and close associates, while strategic long-term investor Vulcan Minerals (TSXV: VUL) owns about 31% of the company. A warrant overhang in Atlas was removed during 2022. Atlas, which trades under the symbol “SALT” on the TSX Venture Exchange and “REMRF” on the OTCQB, has been one of the top performing resource stocks over the past two-and-a-half years. Atlas was also selected as a 2022 TSX Venture 50™ company.
Forward-Looking Statements
This page produced by Atlas Salt includes certain statements that may be deemed “forward-looking” statements. All statements (other than statements of historical fact) that address future business development, technological development and/or acquisition activities (including any related financings), timelines, events, or developments that Atlas Salt expects, are forward-looking statements.
Although Atlas Salt believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance or results. Actual results or developments may differ materially from those in forward-looking statements.
Great Atlantic Salt Project
On August 28, 2023, Atlas Salt released an Independent Feasibility Study (FS) for the Great Atlantic Project prepared by SLR Consulting (Canada) Ltd.
Independent Feasibility Study and Expansion Case For Atlas Salt’s Great Atlantic Project
Mineral Resources
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM (2014) definitions) were used for Mineral Resource classification. The updated Mineral Resource, effective May 11, 2023, includes 383 Mt of Indicated Mineral Resources plus 868 Mt of Inferred Resources.
- CIM (2014) definitions were followed for Mineral Resources.
- Mineral Resources are estimated without a reporting cut-off grade. Reasonable Prospects for Eventual Economic Extraction were instead demonstrated by reporting within Mineable “Stope” Optimised (MSO) shapes, with a minimum height of 5 m, minimum width of 20 m, length of 40 m, and minimum grade of 90% NaCl, with a 5 m minimum pillar width between shapes.
- Bulk density is 2.16 t/m3.
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral Resources are inclusive of Mineral Reserves.
- Salt prices are not directly incorporated into the Mineral Resource MSO minimum target grades, however, the mean Mineral Resource grades exceed the 95.0% NaCl (± 0.5%) specification outlined in ASTM Designation D632-12 (2012).
- Numbers may not add due to rounding.
Mining and Mineral Reserves
Mining designs, development plans, and schedules have been prepared for a fully electric, mechanized room and pillar mining operation. It is envisaged that salt will be mined using continuous miners and hauled by truck to a lump breaker and conveyor system to move material to a crushing and screening plant located underground. The FS is based upon the initial production of 2.5 Mtpa of rock salt product with key mine infrastructure capacity to expand to 4.0 Mtpa. A summary of Mineral Reserves, effective July 31, 2023, is shown in the following table.
Summary of Great Atlantic Mineral Reserves
Notes:
- CIM (2014) definitions were followed for Mineral Reserves.
- All Mineral Reserves are classified as Probable Mineral Reserves, with extents limited to the Indicated Mineral Resource wireframe.
- Salt prices are not directly correlated into the Mineral Reserve estimate, however the mean Reserve grades exceed the 95.0% NaCl (± 0.5%) specification outlined in ASTM Designation D632-12 (2012) and based on a detailed salt market review to determine economic viability.
- A minimum mining height of 5.0 m and width of 16.0 m were used for production rooms.
- Sterilization zones 8.0 m below top of salt and 5.0 m above bottom of salt have been applied.
- A mining extraction factor of 100% was applied to all excavations.
- Bulk density is 2.16 t/m3.
- Planned process recovery is 95%.
- Numbers may not add due to rounding.
Qualified Person
The technical information on this page has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Patrick J. Laracy, P. Geo, Chairman of Atlas Salt, a qualified person.
Other
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined by the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this material.
