corporate presentation ...2 • products: trueq®1 ®–99.86% sio 2 various particle sizes;trueq®3...

FSE:61M | OTCQB: IMAHF | TSX.V: IMA

CORPORATE PRESENTATION

August 1, 2017 www.imineralsinc.com

FSE: 6IM | OTCQB: IMAHF | TSX.V: IMA

1


Forward Looking Statements

This presentation may contain forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of I-Minerals to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Forward looking statements may include statements regarding exploration results and budgets, resource estimates, work programs, strategic plans, market price of industrial minerals or other statements that are not statements of fact.

Although I-Minerals believes the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Various factors that may affect future results include, but are not limited to, fluctuations in market prices of minerals, foreign currency exchange fluctuations, risks relating to exploration, including resource estimation and costs and timing of commercial production, requirements for additional financing, political and regulatory risks, and other risks described in I-Minerals’ management discussions and analyses as filed on SEDAR and EDGAR. Accordingly, undue reliance should not be placed on forward-looking statements

2


Permitted Deposit, Robust Feasibility Study, Strong Management

• One ore, four minerals that are inputs into manufacturing of products consumed in housing and infrastructure

o K-spar: World class: glazes, tiles and sanitaryware

o Quartz: North American class: high end glass and lighting

o Kaolin: North American class: metakaolin = pozzolan

o Halloysite: World class; plastics, polymers, life sciences

• Robust Feasibility Study (“FS”): US$108.3m initial CAPEX; Pretax US$386m NPV (6%) & 31.8% IRR; After tax US$250m NPV(6%); 25.8%IRR

• Easy mine to build: “off the shelf” equipment; 1.5 year build after FS funded

• Permitted for Mining– State of Idaho Operations and Reclamation Plan approved and Idaho Department of Water Resources permit received.

• Experienced Management: Thomas Conway (Newmont): John Theobald (Sibelco) working with international experts in all minerals

• Large insider ownership of ~40% led by Allen Ball ~38%

• Opaque mineral pricing=difficult valuation US$250m NPV; C$34m market cap

3


Helmer-Bovill Project – Great Location with Strong Support

Location: 110 miles South of Spokane

Brownfield project: mined - logged;

Excellent Infrastructure :

Power/gas: 5 miles from mill site;

State highway on property boundary; less than 100 miles to Interstate;

Rail: 50 miles to Lewiston (BN& UP); trunk lines to Spokane (UP);

Tidewater Access at Seattle via I-90.

Supportive community - depressed resource based county keen to see quality jobs created.

Secure Land Tenure: Idaho Dept. of Land Mineral leases; held by production (tailings sales). 5% royalty paid into State Education Fund; State directly benefits from production and sales.

4


FOUR MINERALS – Multiple markets linked by economic growth

Quartz

K-Spar MetaKaolin

Halloysite

Economic growth creates demand

for industrial minerals that are

part of our everyday lives:

iPhones, lighting, cosmetics,

clean energy, nanotechnology,

home renovations, infrastructure

rebuild…..

5


Life of Mine Average Material Balances

(Halloysite varies year to year up to 6%)

6

1000 tons of primary clay

(ORE)

312 tons Quartz

140 tons K-spar

118 tons metakaolin

42 tons Halloysite

388 tons Waste

$75-$600/t

$220-400/t

$175-250/t

$500-+4,000/t

Glass (solar, flat LCD), lighting,

paint, ceramics

Ceramics(glaze / body)

Cement(pozzolan)

Plastics, polymers, life

sciences


Quartz

• Chemistry: SiO2

• Products: TrueQ®1 ®– 99.86% SiO2 various

particle sizes; TrueQ®3 - 99.97% SiO2

• Value: driven by purity (high SiO2%; low Fe2O3),

particle size and melt characteristics.

• I-Minerals Advantage:

✓Highest purity quartz in the Western US; significant

glass production along Interstate 5 corridor.

✓Transportation costs limit competition.

✓TrueQ1 purity reduces need for expensive de-

colorants in basic glass applications

✓TrueQ3 high purity quartz - only 300 ppm of

impurities; Niche product in developing markets as

alternate products are much more expensive ultra

HPQ or lower purity “commodity grade quartz”..

.

7


Potassium-Feldspar or “K-spar”

• Chemistry: KAlSi3O8

• Products: Fortispar® various particle sizes

• Value: driven by high K2O%, low Fe2O3, alkali content and particle size.


• Sole North American competitor is offering a<10% K2O +0.10% Fe2O3 product as compared with Fortispar’s >14% K2O <0.05% Fe2O3

✓40% more K2O; 50% less Fe2O3

comparatively priced

✓K-spar market in short supply

✓Customers needing +13% K2O K-spar must source out of Europe or farther

Shiny glaze on ceramics

is K-spar

8


Halloysite

• Chemistry: Al2Si2O5(OH)4·2H2O Halloysite is a biodegradable nanotube

• Products: ULTRA HalloPure® (+90% halloysite, -10% kaolinite) and HalloPure® (+70% halloysite, -30% kaolinite)

• Value: driven by aspect ratio and purity in life science markets where hollow core of the tubes can be filled and used as a delivery vector

• I-Minerals Advantage: ✓ Scarcity: Globally only 12 halloysite deposits with

economic potential known. ✓ Quality: best in class combination of high aspect

ratio; low heavy metals and no cristobalite - a crystalline silica listed as a carcinogen.

No other known deposit can produce the combination of quality and volume and meet the stringent specifications of the life science markets.

Halloysitenanotubes

HNTs on IDK wound

cloth

9


Kaolin - Metakaolin

• Chemistry: Al2Si2O5(OH)4

Kaolin is calcined at 850o – 900oC to create Metakaolin

• Product: Bovill Metakaolin• Value: a pozzolan, reduces ASR, strengthens and extends

concrete life (especially in cold and marine environments)


✓ Sole source of metakaolin in Pacific Northwest; other pozzolans inconsistent, expensive, scarce

✓Georgia metakaolin +$200/t transport to Western US

✓ silica fume 1.5x price of metakaolin

✓Unprocessed pumice yields inconsistent results

✓ Fly ash (ash from burning coal for electricity) linked to greenhouse gas; dirty coal makes undesirable fly ash => increasing scarcity

✓ Ph of aggregate drives need for a pozzolan

ASR damage

10


MINING & METALLURGY

11


Simple, Low Cost Mining

“Ore” is a fine white clay-like sand created by the weathering of a granodiorite body.

Weathering takes place to depths of 75 to 200 feet; little overburden, shallow pits.

Ore is excavated without drilling or blasting using contract miners utilizing 3 yd3 excavator and 30 ton trucks.

Short haul to process facility -10 minute cycle time; mining during daylight hours only.

Mining Costs $14.50 / ton product

$9.00 per ton of “ore”

12


Separation Techniques proven at Ginn and MRL Pilot Plants

1. Wet Screen separation clay washed from Sand

2. Quartz K-Spar Sand Fraction

• K-spar is floated; quartz sunk via basic flotation

• Quartz fraction is ground finer and then re-floated TrueQ1 product, re-floated up to 2 more times to remove residual K-spar to make high purity quartz products (TrueQ3)

3. Kaolinite Halloysite Clay Fraction

• Halloysite is separated from kaolinite with hydro-cyclones and centrifuge

• Proprietary flotation +90% halloysite product

• Halloysite slow dried to preserve tubular shape

• Kaolin calcined (heated to 8500C - 9000C) to make Metakaolin

Processing costs $58.50/t product; $36/t “ore”

13


Permitting

• Water use permit approved by IDWR

• The Idaho Department of Lands, the lead permitting agency has approved the Company’s Operation and Reclamation Plan. Subject to placing of required bonding, I-Minerals is authorized to commence mining operations.

• Good environmental stewardship was incorporated into the project layout including dry stacking of the tailings and a zero water discharge operation.

• Minor additional permitting required such as air discharge requires identification of specific calciner.

• Bonding needs to be in place to begin construction. I-Minerals evaluating land swap where in it would ultimately own the surface rights as a means to reduce bonding requirements.

14


ECONOMIC VALUATION

15


Robust Feasibility by Leading Engineering Firms

GBM Engineers LLC, (overall project management, process plant and infrastructure design; OPEX and CAPEX) and

HDR Engineering, Inc. (environmental; hydrology; road design);

Tetra Tech, Inc. (tailings storage facility design);

Mine Development Associates (mine modelling; ore scheduling; mineral reserve estimation);

SRK Consulting (U.S.) Inc. (mineral resource estimation).

INITIAL CAPEX US$ 108.3 million, LoM US$125 million

Before Tax After TaxNPV (6%) US$m $385.8 $249.8IRR 31.6% 25.8%Payback 3.7 years

OPEX $92/t product = $14.50/t mining + 58.50/t processing + $19/t G&A inc. public company expenses

Avg. LoM EBITDA at DFS Base case is $45m

16


EBITDA Mineral Price Sensitivities

US$29.66mUS$45.89m

US$62.12m IDL 5% Royalty+ OPEX

Avg. Annual OPEX $19.1m

17

At prices 17.5 % below FS, K-Spar

+ Metakaolin covers OPEX


Market Entry Assumptions at Start Up

• Halloysite – best global deposit of significance suitable for life science applications and replaces more expensive materials. Users have indicated willingness to pay 3-5 times FS price. No reason to constrain average in FS

• K-spar – by far the highest K2O feldspar available in North America. Priced comparable with inferior incumbent producer. Sales of high quality Spanish K-spar at high prices generated weak volume. CAP at +10% FS

• Metakaolin – only producer in the Pacific Northwest. Georgia Metakaolin +$250/t with transport cost +$200 = too expensive. Fly ash currently used, but it is an inconsistent pozzolan in short supply. CAP at +10% FS

• Quartz – highly competitive markets in the Commodity grade space = IMA a price taker and difficult markets to penetrate in the high purity end until quality proven at production. If assume limited HPQ market penetration in early years and large volumes sold under contract into glass markets CAP at -50% FS

18


Startup EBITDA vs Mineral Price AnalysisQuartz held at -50% of FS; K-spar Metakaolin capped +10% of FS

Avg. Annual OPEX $19.1m

IDL 5% Royalty+ CAPEX

US$22.18mUS$30.94m

US$36.64m

19

At Quartz 50% below FS all others 10% below, K-spar and Metakaolin cover

OPEX


EBITDA Growth Opportunities after Start Up

• FS Plant design has ~10% increased production capacity

• Fine grind K-spar and quartz products generate a higher price per ton for a comparatively small marginal cost. (e.g. 30 mesh K-spar $230/t; 200 mesh K-spar $270 per ton; grinding costs <$10/t)

• Plant floor plan has open space for additional grinding capacity

• New TrueQ3 sales. Feedstock to group with leach capability and capacity. Make products for markets at $500-$1000/t

• Consistent TrueQ3 production quality opens door for customers to switch from current high cost duopolistic suppliers.

• ULTRA HalloPure flotation capacity at 75% utilization in FS

• Change the customers to generate most profitable product mix.

EBITDA Yr1 < EBITDA Yr2 < EBITDA Yr3 < EBITDA Yr4 < EBITDA Yr5……..

20


Advisory Board

Dr. Joachim Schomburg (Neubrandenburg, Germany): a leading halloysite expert founder of DURTEC GmbH a leader in mineral-based applications for Nanotechnology and Clean Technology and a developer of a related IPR-portfolio. He has over 35 years in Technical Mineralogy and has authored over 80 scientific papers. He is the leading innovator of DURTEC’s development of selected value-added mineral products for Life Science, Nanotechnology and Environmental Protection applications.

Dr. Thomas Gallo (Ashville, North Carolina): twelve years with Unimin Corporation where he invented Iota-8 processing and rose to manage a 20-person research team working in HPQ processing and purification, customer service, paint / coating research as well as whitewares. Dr. Gallo is a leading high purity quartz expert.

Frank Hart (Cornwall, U.K.) Mr. Hart headed up the technical department at Goonvean Ltd in Cornwall where over 28 years of service he gained a comprehensive knowledge of the mining & refining of kaolin and associated minerals such feldspathic granite; laboratory testing procedures and industrial applications. In 2013 Mr. Hart established First Test Minerals Ltd, focusing on clay minerals and continuing the theme of refining, testing and market development of early stage projects.

Orville (Bud) Werner II (Denver, Colorado): President of CTL|Thompson Materials Engineers, Inc., a company he has served since 1983. Mr. Werner is responsible for selecting and coordinating laboratory and field investigations for evaluation of fresh and hardened concrete, analysis of problems arising in the field during or after concrete construction, and proportioning of concrete mixes for specific applications and projects. He supervises laboratory and field tests on cement and pozzolans,

aggregates and various types of concrete.

21


Next Steps

• Further strengthen mineral marketing

– Strategic market report (John Theobald)

– Offtakes where possible – metakaolin, small volumes K-spar, quartz conditional on passing glass production tests

– Hire VP Marketing to finalize customer and distributor agreements

• Start detailed engineering (Part of CAPEX)

• Undertake land swap with IDL to own surface (Offset bonding in CAPEX)

• Upon completion of Strategic Marketing Report, re-engage with institutions interested in participating in CAPEX raise – due diligence

• CAPEX raise – Q4 2017/ Q1 2018?

• Construction 2018

• Production H1 2019

22


Management

Thomas M. Conway, President & CEO: Extensive experience building, commissioning and operating mines around the world for Newmont Mining:

• Vice President Risk Management: Developed risk management strategies for health, safety, environmental, social responsibility, legal

• Vice President / General Manager–Carlin Operations: Responsible for the P/L of 2 mm oz./yr. operation with 1600 employees; 5 open pits, 3 u/g mines & 3 met. facilities

• Vice President / General Manager Mineral Yanacocha: oversaw start up of 2 metallurgical plants and 3 open pits of Newmont’s most profitable gold mine

Lamar Long, Project Manager: career in industrial minerals; managerial roles with Hecla Mining (KT Clay/Feldspar) assessing global industrial mineral deposits; JM Huber in Georgia Clay Belt.

Gary Nelson, Metallurgical Operations Manager: supervisory experience in industrial mineral production and pilot plant operations including AZCO Mining, KT Clay/Feldspar

Linda Koep, Market Development Manager: Market Development Strategy and competitive analysis; 23 years industry experience, 9 with KT Clay/Feldspar

Mathew J. Anderson, Chief Financial Officer CPA, CA is a Senior Consultant with Malaspina Consultants Inc., and has served as CFO of several junior public companies

23


Directors

Thomas M. Conway, (Salt Lake City, UT) President & CEO (see prior page)

Allen L. Ball, (Idaho Falls, ID) Founder and Chairman of Melaleuca Corporation - grown from a start-up in rural Idaho to a billion-dollar enterprise doing business in 17 countries and is now one of the largest catalog and online retailers in North America; Successful real estate developer through Ball Ventures, LLP.

J. Gary Childress, (Columbus OH) President Orton Ceramic Foundation -provides products to assist and enhance high temperature processing of ceramics. Previously Executive Vice President Hecla Mining where he was integral to the success of KT Clay / Feldspar

W. Barry Girling, (Vancouver, BC) Independent business consultant active in resource companies for over 30 years; director Silver One and Zinc One. Founder / former director of Roxgold Inc.

Wayne Moorhouse, (Vancouver, BC) Chartered Financial Analyst, extensive experience with public companies ; financial reporting, mine development, finance, and corporate governance and has served as a director / officer of several companies including Roxgold Inc.

John Theobald, (London, UK) over 35 years in the international mining industry; experience in exploration, business development, operations, investments and capital markets. From 1999 to 2008 senior management with Sibelco, where he gained significant experience of kaolin, feldspar, clay and quartz markets and operations.

24


Share Capital

Shares Issued & Outstanding 89,331,598 (insiders 40.9%)

Fully Diluted 100,107,680 (insiders 42.3%)

Expiry Number Ex. Price30-Jul-18 1,300,000 0.10

30-Jul-18 260,000 0.15

30-Jul-18 300,000 0.25

19-Nov-18 200,000 0.25

19-May-18 20,000 0.22

8-Jan-19 150,000 0.25

23-May-19 300,000 0.25

16-Dec-17 150,000 0.25

29-Jan-20 1,975,000 0.25

4-Aug-20 200,000 0.25

16-Feb-18 1,000,000 0.25

21-Jul-21 300,000 0.30

3-Nov-21 400,000 0.30

6,555,000 0.22

OPTIONS

Expiry Number Ex. Price

31-Dec-18 2,671,082 0.25

31-Dec-19 1,550,000 0.40

4,221,082 0.31

WARRANTS

25


Summary

Robust FS

• $108.3 mm initial CAPEX; $120 mm Life of Mine

• 3.7 after tax year payback

• Annual Operating Income ~$45 million

• Strong NPV and IRRBefore Tax After tax

$386mm NPV6 $250 mm NPV631.6 % IRR 25.8 % IRR

Long mine life only 25 years defined; 50+ year potential long term cash flows high valuation multiples (e.g. Imerysacquisition of S&B Minerals for +9 times EBITDA

Diversified product and product market mix: four mineral products in various purities and grinds available for sale into markets diversified by both geography and industry, but most markets are integral to the US housing / economic recovery.

26


I-Minerals Inc.

Frankfurt:6IM; OTCQB: IMAHF; TSX.V: IMA

www.imineralsinc.com

Contact:Paul Searle Barry Girling(877) 303 6573 ext. 113 (877) 303 6573 ext. [email protected] [email protected]

27

corporate presentation ...2 • products: trueq®1 ®–99.86% sio 2 various particle sizes;trueq®3...

Documents