PILBARA FOCUSSED LITHIUM EXPLORER - Corporate Presentation May 2021 - Global Lithium
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PILBARA FOCUSSED LITHIUM EXPLORER
Corporate Presentation
May 2021
ASX: GL1
Important notice & disclaimer
Important Notice and Disclaimer
• These presentation materials and the accompanying verbal presentation (together, the Presentation Materials) have been prepared by Global Lithium Resources Limited (Global Lithium or Company). By receiving the Presentation Materials, you acknowledge and
represent to the Company that you have read, understood and accepted the terms of this disclaimer.
• You must read this important notice before you attempt to access the Presentation Materials. The information on this page is not part of the Presentation Materials. If you do not understand it, you should consult your professional adviser without delay.
NOT AN OFFER
• These Presentation Materials are for information purposes only. The Presentation Materials do not comprise a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with the Australian Securities and Investments
Commission) or any other law.
• The Presentation Materials also do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied upon in connection therewith or
act as any inducement to enter into any contract or commitment with respect to securities. In particular, these Presentation Materials do not constitute an offer to sell or a solicitation to buy, securities in the United States of America.
NOT INVESTMENT ADVICE
• The Presentation Materials are not investment or financial product advice (nor tax, accounting or legal advice) and are not intended to be used for the basis of making an investment decision. Recipients should obtain their own advice before making any investment decision.
SUMMARY INFORMATION
• The Presentation Materials do not purport to be all inclusive or to contain all information about the Company or any of the assets, current or future, of the Company.
• The Presentation Materials contain summary information about the Company and its activities which is current as at the date of the Presentation Materials. The information in the Presentation Materials is of a general nature and does not purport to contain all the information
which a prospective investor may require in evaluating a possible investment in the Company or that would be required in a prospectus or product disclosure statement or other offering document prepared in accordance with the requirements of Australian law or the laws of
any other jurisdiction, including the United States of America.
• The Company does not undertake to provide any additional or updated information whether as a result of new information, future events or results or otherwise.
FORWARD LOOKING STATEMENTS
• Certain statements contained in the Presentation Materials, including information as to the future financial or operating performance of the Company and its business operations, are forward looking statements. Such forward looking statements:
- are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and
contingencies;
- involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and
- may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market,
political, social and other conditions.
• The Company disclaims any intent or obligation to publicly update any forward-looking statements, whether as a result of new information, future events or results or otherwise.
• The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements.
• All forward looking statements contained in the Presentation Materials are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to
put undue reliance on forward looking statements due to the inherent uncertainty therein.
NO LIABILITY
• The Company has prepared the Presentation Materials based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions
contained in the Presentation Materials. To the maximum extent permitted by law, the Company, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth) (Corporations Act)) and the officers, directors, employees, advisers and agents of those
entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation Materials or its contents or otherwise arising in connection with it.
DISCLOSURE DOCUMENT
• The Company released a prospectus dated 22 March 2021 (Prospectus) for an initial public offer of fully paid ordinary shares in the capital of the Company (Shares), a copy of which can be accessed from the Company’s website at www.globallithiumresources.com.au. All
offers of Shares for the capital raising referred to in the Presentation Materials were required to be made in, or accompanied by, the Prospectus. Investors were urged to consider the Prospectus in deciding whether to acquire Shares and any person who wished to apply for
Shares was required to complete the application form that accompanied the Prospectus.
• Information on historical exploration results and Mineral Resources presented in this Announcement, together with JORC Table 1 information, is contained in the Independent Geologists Report within the Company’s Prospectus dated 22 March 2021, which was released as
an announcement on 4 May 2021.
MINERAL RESOURCES
• The information in the Presentation Materials which relates to mineral resources is based on information compiled by Greg Jones who is a Fellow of The Australasian Institute of Mining and Metallurgy. Greg Jones has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the
JORC Code). Greg Jones is a full time employee of IHC Robbins Pty Ltd. Greg Jones consents to the inclusion of the information in the Presentation Materials in the form and context in which it appears.
EXPLORATION
• The information in the Presentation Materials that relates to the exploration results and exploration targets is based on information compiled by Jason Meyers who is a Fellow of The Australasian Institute of Geoscientists. Jason Meyers has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration results, Mineral Resources and
Ore Reserves’. Jason Meyers is a full time employee of Resource Potentials Pty Ltd. Jason Meyers consents to the inclusion of the information in the Presentation Materials in the form and context in which it appears.
2
Introduction
Positioned for success
1 ● Heavily oversubscribed $10m IPO completed May 2021
● Attractive valuation relative to ASX lithium peer group
● Credible leadership team assembled
Pilbara-focussed lithium explorer
2
● Marble Bar Lithium Project (MBLP) located within the Tier-1 Pilbara lithium province
with access to world-class infrastructure
● Similar geological settings to nearby Pilgangoora1 & Wodgina2 deposits
Resource growth potential
3 ● The Archer Deposit (“Archer”) is a new discovery and has an Inferred Mineral Resource
of 10.5Mt @ 1.0% Li2O
● Potential extensions to the mineral resource – opportunity for rapid growth
● Large prospective area to explore – opportunity for further discovery
Aggressive exploration program – ongoing news flow
4 ● Leveraging off more than 12,700m in drilling over the past 2 years
● Have ‘hit the ground running’ - drilling campaign underway
● Resource update targeted Q4 2021
Sector & ESG momentum driving prices
5 ● Global push for carbon neutrality driven via EV adoption and energy storage
● Lithium market surging – spodumene concentrate prices up +60% so far in 2021 3
1. Owned by Pilbara Minerals (ASX: PLS)
2. Owned by the MARBL JV, 60% Albemarle, 40% Mineral Resources (ASX: MIN)
3. Independent price reporting agencies including FastMarkets, Platts, Asian Metals and BMI reporting spodumene concentrate pricing in the range of
3 US$550–US$700/dmt (SC6.0, CIF basis) towards the end of March 2021 (reported $400–US$430/dmt (SC6.0, CIF basis) at end of December 2020)
Corporate overview
Corporate Structure Global Lithium at a Glance
IPO Price $0.20 • Established in 2018
Shares on Issue 131.8m • Founded by experienced resource professional Dr Dianmin Chen,
backed by high-net-worth investors
Options on Issue 4.8m
• Archer has a JORC Inferred Mineral Resource of 10.5Mt @ 1% Li2O
Performance Rights 5.0m
- Archer discovered in 2019
Market Capitalisation (undiluted) $26.4m
- Mineral Resource achieved within 12 months of acquisition
Cash (Pre-IPO Costs) $10.8m
• Geologically similar to the nearby Wodgina and Pilgangoora deposits
Debt $0.0m
• Enviable location – access to world-class infrastructure
Enterprise Value $15.6m
Shares Escrowed 61.1m
Board of Directors
Shareholders
Institutions and Jamie Wright Managing Director
Corporates, 15%
Warrick Hazeldine Non-Executive Chair
Yongfang Guo,
Dr Dianmin Chen Non-Executive Director
12%
Other, 55%
Goldenstar
Energy, 11%
Directors +
4 Management, 7%
Leadership team
Jamie Wright Warrick Hazeldine Dr Dianmin Chen Kevin Hart Joanne Day Dr Jayson Meyers Ian Shackleton
Managing Non-Executive Non-Executive CFO & Company Administration Technical Exploration
Director Chair Director Secretary Manager Specialist Manager
● Mining executive with ● Founding Director of ● Mining engineer with ● +30 years experience in ● 30+ years experience. ● Principal Geoscientist
● Principal Consulting
+20 years experience in corporate +35 years experience in the accounting, Worked with the and Director of
Geologist of consulting
management, corporate communications firm, mining across a variety management and management teams of consulting firm,
firm Resource
development and Cannings Purple of roles administration of public private and ASX listed Resource Potentials
Potentials with +30
advisory companies in the resource companies +30 years experience
● Significant experience ● Previously Managing years experience
resources sector
● Previous c-suite and in resource sector Director of Norton ● Integral in ensuring the ● Global understanding of
● Managing exploration,
GM roles with mining IPO’s, M&A and Goldfields ● Experience includes team work closely geology and exploration
feasibility studies and
corporates secondary listings with senior accounting and together and day-to-day has contributed to
● Other executive roles operating mines across
strong focus on battery finance roles with ASX activities are run numerous significant
● BEng (Mining), BAppSc include with Sino Gold, numerous commodities
minerals transactions listed gold miners smoothly and efficiently discoveries
(Geology) (Hons), Grad Citic Pacific Mining &
as the business grows ● BSc (Applied Geology),
Dip in Applied Finance ● BCom, GAICD CaNickel ● BCom, CA ● BSc (Geology), MSc
GAICD
and Investment, AICD ● Graduate Diploma of (Geochemistry), PhD
● BEng (Mining) & PhD
Management (part), (Geophysics)
(Mining Geomechanics)
Justice of the Peace WA
5
Marble Bar Lithium Project (MBLP)
● Emerging hard rock lithium discovery 180km SE of Port Hedland
Geology ● Strategic land holding situated in the North Pilbara Craton,
one of the world’s major lithium and tantalum provinces
● Focus to date has been on discovering and exploring the Archer
Deposit
Archer ● Hard-rock lithium, spodumene pegmatite opportunity
Deposit ● Maiden Inferred Mineral Resource of 10.5Mt @ 1.0% Li2O
achieved within 12 months from project acquisition
● Deposit outcrops at surface and is open in all directions
Newly discovered ● Prospective area of >20km2 defined by outcropping geology, soil
Archer Deposit is geochemistry, outcropping pegmatites and proximity to the likely
growing rapidly
Significant source granite to the south-east
Upside ●
Exploration program
underway – drill rig turning
• RC Program underway May 2021
– Early works program completed in parallel with IPO process to
identify drilling targets and immediately commence exploration
– 4,000m program commenced May 2021 with Profile Drilling
– Focus on in-fill and extensional drilling around the Archer deposit
– Inaugural program as a public company seeking to step-out from
current Mineral Resource and test new areas
– Designed and managed by Resource Potentials
• Fieldwork across broader area as part of the program
– Geologists mobilised to site ahead of drill rig to commence
mapping and investigate Brockman Zone
• Diamond drill program being planned
– Diamond drilling will provide core for metallurgical testing
– Program will be finalised using results of the RC program
7
World-class location, logistics & infrastructure
World class lithium projects nearby Sealed Marble Bar Road
Sealed Marble Bar Airstrip Borefield on GL1’s tenement
Favourable Topography and Easy Road Access Marble Bar Port Hedland
8
Highly prospective geological setting in the Pilbara
• The MBLP is a hard-rock lithium project located in the North Pilbara Craton,
host to one of the world’s major pegmatite hosted spodumene lithium and
tantalum provinces
• Notable hard-rock lithium pegmatite deposits in the area include:
– Pilgangoora (Pilbara Minerals, ASX:PLS)
– Wodgina (Albermarle 60%, Mineral Resources ASX:MIN 40%)
• The MBLP demonstrates similarities with these world class deposits:
– All occur in the same region, are of a similar age and in the same geological
setting
– Spodumene pegmatites hosted in greenstone and granite contacts
– Fertile Split Rock Supersuite granites in proximity to the LCT pregmatite
deposits
– Each project started as a tin and then tantalum project before migrating to
lithium
• Historical Moolyella tin field is located immediately adjacent to the MBLP and
supports the project as being in the ‘right zone’ for LCT pegmatites
9
The Archer Deposit
● Multiple spodumene pegmatite dykes striking north-south, shallow dip to
the east
● A number of surface expressions and blind dykes found by drilling
Geology
● Pegmatite zone identified over 3km by 1km zone
● Average vertical depth ~110 – 120m (limited by drilling)
● Currently open in all directions
● 12,758m of RC drilling,112 drill holes, 3 programs and 5,328 assays
● ‘Walk up’ discovery – exposed outcropping pegmatites, little to no cover
● Excellent intercepts – opportunity to grow
Exploration
– 16m @ 1.4% Li2O from 37m (MBRC0077)
– 14m @ 1.5% Li2O from 64m (MBRC0114)
– 19m @ 1.2% Li2O from 22m (MBRC0041)
– 15m @ 1.3% Li2O from 30m (MBRC0035)
Mineral Resource1 Material Li2O SnO2 Ta2O5 Fe2O3
Independent Category (Mt) (%) (ppm) (ppm) (%)
Mineral
Resource3 Inferred 10.5 1.0 49 53 1.2%
1. Cut-off grade of 0.6% Li2O
2. Discovery cost (t) = exploration cost ($2.2m) / tonnage (10.5Mt)
● Discovery cost to date of $0.21/t per Resource tonne2
10
3. 200630-GLR-Mineral Resource Estimate, dated June 2020, prepared by IHC RobbinsThe Archer Deposit – growth potential through deeper, in-fill and step-out drilling 11
Exploration drivers
• Initial prospective area for LCT pegmatites of over
20km2 already identified
>20km2 prospective area
– Defined by soil geochemical survey, airborne to explore
geophysics, airborne interpretation and outcropping
pegmatites
– In the ‘right zone’: adjacent to the Moolyella tin field Outcropping
–Work program Phase 1 –
Grow the Archer Deposit
• Phase 1 – Seek to grow the Archer Deposit
– Step-out RC drilling to target extensions to the deposit
– RC in-fill drilling to improve knowledge in geology and grade
Phase 3 –
and to assist improve Mineral Resource categories
Explore the larger
– Diamond drilling for metallurgical testing prospective Area
• Phase 2 – Test the Brockman zone
– Outcropping pegmatites and structural target in an area of thin
alluvial cover
– Drilling program to be completed (subject to approvals)
Phase 2 –
• Phase 3 – Explore the larger prospective area Test the Brockman
Zone
– Geological mapping, drone topography and air photo survey,
and desktop interpretation to increase understanding of geology
and structural controls
– Identify and drill pegmatite targets (subject to approvals)
• Phase 4 – Consider growth opportunities
– Conversion of EL applications to the east
– Consider complementary acquisitions
13Indicative timeline
Q2 Q3 Q4
2021 2021 2021
Phase 1 Program Underway
• Initial 4,000m RC program underway
• 600-800m diamond program +
metallurgical program
Phase 2 / 3 Drilling Program
• Subject to approvals
Target Resource Update
Figure: 2020 RC drilling campaign delivering results at the Archer Deposit
Note: The timetable and exploration program is indicative and subject to change.
14EV’s are now a global mega trend…
• EV1 take-up driven by policy and consumer sentiment
– Global trend to push for carbon neutrality via renewables – EVs
and energy storage key beneficiaries
– EU is targeting net zero carbon emissions by 2050. US
Administration likely to follow
– China and Europe leading the way for EV adoption - Europe set
to become the largest EV market for 2021
– Intensifying focus on ESG2 expected to drive investment for
sustainable energy sources but also place more scrutiny on
lithium supply chains
• Global car manufacturers are responding
– 2021 ‘watershed year’
– GM, Ford, VW, Geely, Volvo and Land Rover notable global
brands that have made substantial commitments to electrify
– Most major car brands now committed to electrification
– Timeline for EV take-up is exponential
“There is no long-term future for cars
1. EV = Electric Vehicle with an internal combustion engine.”
2. ESG = Environmental, Social & Governance Investor Expectations
3. Infographic source: Statistica.com - Volvo's chief technology officer, Henrik Green, 3 March 2021
15…and the Lithium price responding
• Lithium is a key raw material in batteries 2,000
– Raw materials required to enable the EV revolution
Global Lithium Supply
& Demand (kt LCE1)
– Fast paced downstream developments are triggering supply
constraints in the lithium market
Market Demand / Supply kt LCE
1,500
– Raw material supply is becoming tighter as structural deficit
looms
1,000
• Lithium prices are climbing
– Recovery in lithium pricing commenced late 2020 – Lithium
carbonate and lithium hydroxide prices in China have been
increasing 500
– Spodumene a key raw material (particularly for lithium
hydroxide)
– Spodumene prices starting to respond - up more than 60%
-
since 1 January 2021 to US$700/t2
• Having an uncommitted spodumene mineral resource in this Total Demand LCE (kt) Total Supply LCE (Kt)
climate is emerging as a strategic place to be!
1. LCE = Lithium carbonate equivalent
“Material shortages predicted
2. Independent price reporting agencies including FastMarkets, Platts, Asian Metals and BMI reporting
spodumene concentrate pricing in the range of US$550–US$700/dmt (SC6.0, CIF basis) towards the end of for lithium from 2025”
March 2021 (reported $400–US$430/dmt (SC6.0, CIF basis) at end of December 2020) - FNArena.com 14 April 2021
16 3. Chart source: Barclays ResearchEV1 / Resource2 (3 May 2021)
EV/Resource (A$/tonne Li2O3) – select ASX peers
$3,026/t
$1,452/t
$662/t
$470/t
$150/t $97/t
Project2 Piedmont Finniss Authier Wolfsberg Archer4 Dome North
(ASX:PLL) (ASX:CXO) (ASX:SYA) (ASX:EUR) (ASX:GL1) (ASX:ESS)
Location North Carolina Northern Territory Quebec Austria Marble Bar Goldfields
Status PFS DFS DFS PFS Explorer Explorer
Resource - Tonnage (Mt) 39.2 Mt 14.7 Mt 20.9 Mt 11.0 Mt 10.5 Mt 11.2 Mt
Resource - Li2O Grade 1.1% 1.3% 1.0% 1.0% 1.0% 1.2%
Distance to Port 317km 88km 600km 260km 180km 200km
Market Cap (A$m)1 $1,496m $323m $170m $56m $26m $19m
Enterprise Value (A$m)1 $1,279m $282m $140m $52m $16m $13m
EV/Resource (A$/t Li2O) $3,026/t $1,452/t $662/t $470/t $150/t $97/t
1. EV= Enterprise Value. EV is calculated as the market capitalization of each company as at 3 May 2021 sourced from Bloomberg. The market capitalization is then
adjusted for cash (decrease) and debt (increase) to arrive at the EV.
2. See Appendix for detailed project and EV information, including the Mineral Resource by category as well as the information used in calculating the Evs.
3. Contained Lithium Oxide = Tonnage (Mt) x Grade (Li2O %)
17 4. Discovery cost for Archer Mineral Resource is A$0.21/t based on $2.2m spent on exploration divided by the Mineral Resource tonnes.Sustainability
Strong ESG framework to create value for all stakeholders
v v v
ENVIRONMENT SOCIAL GOVERNANCE
Commitment to minimise Engage local suppliers Integrate best practice
ground disturbance, and recognition of environmental and social
emissions and water usage Traditional Owners standards into corporate
governance principles
18Global Lithium: emerging Pilbara lithium explorer
Valuable position in Maiden 10.5Mt @
Tier-1 Pilbara lithium 1.0% Li2O Inferred Access to
province Mineral Resource world-class
with clear growth infrastructure
potential
Strong pipeline of
Resource expansion news flow expected
and exploration over next 12-18
program already Strong team driven
months
underway by ESG fundamentals
19APPENDICES
The Company confirms that it is not aware of any new information or data that
materially affects the information in the original reports, and that the form and
context in which the Competent Persons findings are presented have not been
materially modified from the original reports.
Where the Company refers to Mineral Resources in this announcement
(referencing previous releases made to the ASX), it confirms that it is not aware
of any new information or data that materially affects the information included in
that announcement and all material assumptions and technical parameters
underpinning the Mineral Resource estimate with that announcement continue
to apply and have not materially changed. The Company confirms that the form
and context in which the Competent Persons findings are presented have not
materially changed from the original announcement.
20Appendix: detailed project data
Peer Group Comparison Data1
Mineral
Mineral Mineral Mineral Cash & Debt
Market Enterprise Resource
Cash Debt Resource Resource Resource ASX
Company Project Capitalisation Value ASX
(Tonnage) (Li2O Grade) (cont. Li2O) Announcement
Name Name Announcement
A$m A$m A$m A$m Kt % Kt Date Date
Core Lithium Finniss 323 40.9 - 282 14.7 1.3% 194 29-Apr-21 15-Jun-20
Essential Metals Dome North 19 6.2 - 13 11.2 1.2% 136 15-Apr-21 29-Sep-20
European
Wolfsberg 56 7.8 4.0 52 11.0 1.0% 110 30-Apr-21 5-Apr-18
Lithium
Piedmont Piedmont 1,496 216.52 - 1,279 39.2 1.1% 423 30-Apr-21 8-Apr-21
22/04/2021 &
Sayona Mining Authier 170 30.33 - 140 20.9 1.0% 211 24-Nov-18
30/04/2021
1. All Mineral Resources have been reported on a 100% basis. The source announcements for each of the technical and EV data are shown in the table
2. AUD/USD = 0.77 (3 May 2021)
3. Comprises: 1) Cash Reserves at 31 March 2021 of $9.88m; 2) April 2021 rights issue proceeds of $20.4m
21ASX: GL1
https://au.linkedin.com/company/
global-lithium-resources
@Global_Lithium
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CONTACT US
Victoria Humphries
Jamie Wright Media and Investor Relations
+61 8 6103 7488 +61 (0) 431 151 676
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