Sunday, June 16, 2024

Temas Resources is Unleashing the Potential of Critical Minerals for National Security and Economic Growth

Date:

  • La Blache Property: Net Present Value (NPV) of CAD $6.6 billion, IRR post tax of 60.8%, and CAD $23.1 billion in estimated EBITDA over a 14-year mine life.
  • Innovative Technologies: Utilizes proprietary ORF technology to enhance the efficiency and sustainability of mineral processing, reducing environmental impact and operational costs.
  • Financial Position: Successful completion of a CAD $1.7 million private placement in two tranches to fund key projects and corporate activities.

Temas Resources (CSE: TMAS) (OTCQB: TMASF) is poised to leverage its significant mineral assets to address these crucial needs. The company’s recent Preliminary Economic Assessment (PEA), highlighted in news releases dated February 7, 2024, and March 28, 2024, showcases the immense potential of its substantial titanium deposit in Quebec, Canada. With a net present value (NPV) of $6.6 billion CDN at an 8% discount rate at his La Blache Ti-V-Fe Project, this asset underscores the vast untapped value within Temas Resources. Despite this, the market has yet to fully recognize this potential, with the company’s shares trading at just 0.05% of NAV.

Québec: A Top Global Mining Destination with Unmatched Potential and Policy Support

Québec is a premier mining jurisdiction with a strong reputation globally. According to the Fraser Institute’s 2023 survey, Québec ranks 8th worldwide for mining investment attractiveness, blending geological potential and government policies that encourage exploration and mining activities​. This position reflects a consistent performance, as Québec has been a top-10 contender in previous years, ranking 6th in 2021 and 4th in 2019.

Several factors contribute to Québec’s high ranking:

  • Geological Potential: Québec is rich in diverse mineral resources, including gold, lithium, and other critical minerals essential for various industries, including technology and green energy​​.
  • Favorable Government Policies: The province offers a stable regulatory environment, competitive tax regimes, and significant government support for mining activities. These policies are designed to reduce uncertainty and create a conducive environment for investment​​.
  • Economic Impact: Québec’s mining sector is a substantial economic driver, providing thousands of jobs and generating significant economic activity. In 2018, the mining industry in Québec created 48,006 jobs and contributed $9.9 billion in total expenditure​.
  • Infrastructure and Support: The province boasts excellent infrastructure, including transportation networks and power supplies, which are crucial for mining operations. Additionally, there is strong local expertise and a network of service providers and suppliers that support the mining industry​.

Temas Resources Leading the Charge in Critical Minerals

Temas Resources Corp. (CSE: TMAS) (OTCQB: TMASF) is a Canadian-based mineral exploration and development company focused on the acquisition, exploration, and development of iron, titanium, and vanadium properties. These minerals are considered critical to national security and economic stability by the U.S. Department of the Interior. The company owns two assets, both located in the province of Quebec.

La Blache Property: A Cornerstone of Temas Resources’ Portfolio

The La Blache Property is a flagship project of Temas Resources Corp., strategically located in the Grenville Geological Province in Quebec, Canada. This property comprises 117 semi-contiguous mineral claims spanning 6,203.12 hectares (62.03 km²) and is 100% owned by Temas Resources. The La Blache Property is a significant asset, rich in titanium, vanadium, and iron ore, minerals deemed critical to national security and economic growth by the U.S. Department of the Interior.

The recently filed Preliminary Economic Assessment (PEA) for the La Blache Property underscores its immense economic potential:

  • Net Present Value (NPV): CAD $6.8 billion at an 8% discount rate
  • Internal Rate of Return (IRR): 55.1% post-tax
  • Estimated EBITDA: CAD $23.1 billion over a 14-year mine life
  • Key Minerals: Titanium, Vanadium, Iron Ore

The robust economic indicators from the PEA highlight the strategic importance of the La Blache Property in meeting the global demand for critical minerals essential for national security and various high-tech industries.

Corporate Structure

Temas Resources Corp. (CSE: TMAS) (OTCQB: TMASF) is strategically positioned to address the increasing global demand for iron ore, titanium, and vanadium. As of February 2024, the company’s corporate structure is robust with 26,157,230 shares outstanding for a total of 37,939,703 shares fully diluted.

Temas Resources’ stock performance has shown resilience and growth. As of mid-May 2024, the stock price is CAD 0.28, with a 52-week range between CAD $0.03 and CAD $0.47, highlighting significant volatility but also potential for high returns. The market cap stands at approximately CAD 4.03 million, positioning it as a small-cap player with considerable room for growth as its projects advance​​.

Everyday Uses of Titanium

Temas Resources Completes Second and Final Tranche of Oversubscribed Private Placement

Temas Resources Corp. (CSE: TMAS) (OTCQB: TMASF) has successfully completed the second and final tranche of its oversubscribed non-brokered private placement, further to its announcements on February 8, March 22, and April 8, 2024. This private placement, pivotal for the company’s strategic initiatives, highlights investor confidence in Temas Resources’ future.

Key Details of the Private Placement:

  • Gross Proceeds: Initially planned to raise CAD $1.5M, the private placement raised over CAD $1.7 million.
  • Units Issued: The company issued 8,598,690 units at a price of CAD $0.20 per unit.
  • Use of Funds: The proceeds will be used to advance the development of Temas Resources’ flagship projects and for general corporate purposes.

The funds raised through this private placement will enable Temas Resources to accelerate the exploration and development of its key mineral properties, including the La Blache Property in Quebec.

The titanium market, characterized by its maturity and predictability, is poised for significant expansion. As reported by Statista in October 2023, the global titanium market achieved a remarkable value of $28.59 billion in 2022. Projections indicate an impressive growth of over 80%, with the market expected to soar to nearly $52 billion by 2030. Established distribution channels, integral to the market’s success, are eagerly awaiting new sources of supply as major existing mining operations approach the end of their productive life cycles. This burgeoning demand presents a thrilling opportunity for new entrants in the titanium supply chain.

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Temas Resources Poised for Significant Growth

Temas Resources Corp. (CSE: TMAS) (OTCQB: TMASF) is strategically positioned to capitalize on the global demand for critical minerals, such as titanium, vanadium, and iron ore. With substantial assets like the La Blache Property, the company is well-equipped to meet the needs of industries critical to national security and economic stability. The Preliminary Economic Assessment (PEA) for the La Blache project demonstrates an impressive NPV of CAD $6.8 billion and an IRR of 60.8%, highlighting the project’s robust economic potential. Despite the significant market opportunity, Temas Resources’ stock remains undervalued, trading at just 0.05% of its NAV, offering considerable upside for investors.

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Marc has been involved in the Stock Market Media Industry for the last +5 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website. He then contributed to building Guerilla Capital, a Capital Markets company and FirstPhase Capital where he was head of research. At10xAlerts, he writes articles and conducts interviews on many sectors, including breaking news technology, metals & mining markets.

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