High Purity Quartz Limited

Opportunity

Raising A$1M (post money valuation of A$11M)

Price guide A$13.58 per share

Summary

The world’s most critical mineral linked to renewable energy and semiconductor thematic.
Ultra-high purity quartz sand and powder is the fundamental building block for all digital technology and solar PV renewable energy.

Ultra-high purity sand and powder market is driven by growth in the manufacture of all solar PV cells, fibre optic cables and semiconductors embedded in all high demand growth consumer applications including Smartphones, Electric Vehicles, 5G networks and associated digital platforms.

Business Highlights

“The world’s most critical mineral”

Ultra high purity quartz sand and powder is a critical and essential mineral used in the manufacture of Solar PV crucibles for fabrication of solar grade silicon wafers and semiconductor crucibles for fab of semi grade silicon wafers.

High growth opportunities have been driven by renewable energy generation, chip demand for all digital hardware and other specialty applications including fibre optic cables, electronic encapsulants, quartzware applications such as lighting and pharma/lab glass.

The major industrial manufacture markets are China for solar PV and US, Japan, Korea and Taiwan for semiconductor chips.

All end-use consumer applications depend on a secure supply of ultra-high purity quartz sand and powders, these are:

All smart electronic devices including phones, TVs, laptops, modern sensors
All digital platforms such as Facebook, Amazon, Alphabet, Netflix, Google
All fibre optic cables including for use in 5G networks
Electric Vehicles (all new vehicles generally) depend on digital tech to operate
All solar PV cells and modules and related renewable power generation
The consumer demand has created growth markets subject to risk of supply dominated by the USA.

Investment Highlights

Critical mineral leveraged to the growing Solar PV, EV, fibre optics, and semiconductor and renewables thematic
Drilled quartz JORC Measured and Indicated resource in Queensland, Australia
Qualifying resources with the right chemistry are extremely scarce globally
Strong management and advisory team and expert project partners
Low volume, high value markets with existing USA-based resource dominance impacting supply security in APAC manufacture markets
Estimated lowest costs of production relative to main competitors
Early pre-production sales from simple quarry and haulage of lump product to the sales point
Valuation growth enabled by processing plant build and volume expansion backed by long-life asset and multiple exploration assets
Listing planned within 18 months
Interest from larger strategic entities involved in solar PV and semiconductor manufacture after this round and test results.
Full project NPV > A$900m post tax, 10% discount rate.

Critical Mineral

Renewable Energy & Semiconductor Thematic

Growth Markets

Strong Management

Funding Strategy

A$1M – for this Capital Raise at A$13.58 per share (testwork finalisation)
A$5M- pre-IPO funding Q2/Q3 2022 (Multiple live options being pursued)
Exit Opportunity via Listing ASX in 18 months to part fund A$50m capex to build processing plant
Potential grant and pre-sales funding are options and will be sought to minimise existing equity dilution.

Use of Funds A$1M(A$250k raised/committed)

Resource work – New stockpile and mining lease, lease rents and fees including 3rd party tenement management costs.
Product Testing – Confirmatory tests re the pre-production Low Alpha EMC Filler product and tests for Inner Layer Solar PV crucible grade plus contingency.
Project management – Includes management of process testwork, tenement work including mine planning and development and initial planning for pre-IPO funding.
Costs of Raise – capital raising fees.

Videos

The Quartz Corporation – Spruce Pine resource extraction pre-processing in USA and final processing in Drag, Norway. The video provides insight into processing steps and critical uses of quartz once processed.