Electro Metals & Mining

                          Electro Metals and Mining Inc. 

Canadian Metals for the Electric Generation

EXPLORATION – DEVELOPMENT - GROWTH

https://finance.yahoo.com/news/shine-box-capital-announces-letter-212600215.html

February 23, 2023

Electro Metals is a private Canadian company with a very well – seasoned team, engaged in the exploration and development of critical metals deposits. The corporate strategy is to develop projects in copper, nickel, zinc, and precious metals that will feed into the increasing demand for these metals. The company will focus on projects with a clear path to potential cash flow. 

Overview

*Electro Metals is a Canadian controlled private corporation (“CCPC”).  www.electrometalsandmining.com  which has signed an LOI with a TSXV Capital Pool Corporation (“CPC”) and is currently seeking funds to advance its high potential Copper – Zinc – Silver – Gold project in the prolific Rouyn-Noranda area of Quebec. 

*Three – fold corporate strategy: 1. Identify advanced exploration projects with the potential to move rapidly to cash flow, 2 Aggressively explore these projects to expand the resource base and make new discoveries, and 3. Grow the Company through accretive M&A  of additional near – term cash flowing projects.

*The first acquisition is a 100% - owned 795 hectare copper - silver exploration property and an Option to earn 100% in the adjacent 58 sq km Fabie – Magusi Project (“FMP”). The FMP has seen prior production from the Fabie copper deposit, located on a patented claim. The Magusi deposit extends from surface to beyond 600m depth and has several historical resources calculated (see p. 64 of the 43-101 filed on SEDAR: https://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00054077).. The concept is to move Magusi to production while continuing to explore for deep extensions and new deposits on the property.

*The Company has 33 million shares outstanding and an implied market cap of $10million, pre-financing. Management and Insiders control, directly and indirectly, 44.6% of the shares. 

DESCRIPTION OF THE FMP

Great Infrastructure

Situated just 55 km by gravel and paved road from the Horne smelter in Noranda, and 130 km by road to the Kidd Creek zinc concentrator near Timmins Ontario, the FMP is ideally located near infrastructure and workforce, and includes a 3 Phase high voltage line to the project gate. 

Famous Mining Camp

The Noranda area of Quebec is a famous and long – lived mining centre, dating back over 100 years. Some 20 mines have been developed and approximately 120 million tonnes of high grade copper and zinc – rich ore and precious metals have been produced. The Fabie deposit has produced approximately 600,000 tonnes of ore grading approximately 2.75% copper. It was flooded and the site has been rehabilitated. Although not confirmed, an estimated 225,000 tonnes remains in remnants at depth. 

Substantial Resources on the Property

The Magusi deposit has not been developed and remains an advanced exploration project. Numerous resource calculations have been calculated on the deposit, the most recent, in 2012 (RPA report for Mag Copper), focused on high grades with the assumption of underground mining:

• Indicated Copper Zone: 729KT 3.26%Cu, 0.58% Zn, 43.4 g/t Ag, 0.41g/t Au 

• Indicated Zinc Zone: 580KT 8.57%Zn, 0.39% Cu, 42.1g/t Ag, 2.34 g/t Au

• Inferred: 355KT 3.41% Cu, 0.39% Zn, 24.2 g/tAg, 0.26 g/tAu at depth

Excellent Potential for Near Term Cash Flow

The Magusi project extends to surface and could lend itself to a quarry type of operation. With nearby processing facilities, and excellent road access, Electro Metals believes the Magusi project is ideal for evaluating the potential to move the project into production in the near – term. Once financed, work will begin immediately with infill drilling, expansion drilling and advanced metallurgical test work. Should the results prove positive, the Company will re-apply for a modification to its existing bulk sample permit and move directly into preparing to extract industrial scale samples for processing at nearby facilities. Should this all prove positive, Electro proposes to mine the shallow parts of the deposit and continue assessing the potential to develop the deeper copper – rich portions. 

Continued Exploration to Find New Deposits

Based on its re-evaluation fo the FMP during 2022, Electro has identified five additional exploration targets to test on the property. These deposits typically occur in clusters and data review suggests ongoing prospectivity. 

Good Pipeline of News Flow 

With the multi-pronged exploration and development strategy, Electro will have a steady stream of news: from infill and expansion drilling, to met testing programs to various exploration targets on the property, there will be extensive updates and progress reports. The Company will continue to look for new, accretive M&A opportunities to enhance its growth profile.

Management and Board

Daryl Hodges, MSc, CEO and Chairman

19 years Falconbridge, Kidd Creek, Esso Minerals, Harbinson Group, Texasgulf, includes copper-zinc, gold, and tin-tungsten discoveries, development work at Owl Creek Gold, Norilsk Nickel  

17 years Investment Banking and Research: Jennings Capital, HSBC, CEO at Jennings, over $4bn in transactions

8 years Advisor and Director of public and private companies

Doug Harris, CPA, CBV, MBA., Chief Financial Officer 

Over 25 years of experience in the Financial Services sector.

Accounting, Corporate Finance, private equity and M&A experience in over $2bn of transactions.

MBA Accounting Rotman School of Management (Toronto), BSc Geography (Guelph) 

Paul Nagerl, MSc., VP Exploration 

Over 30 years nickel - copper experience, Thompson, Raglan, South Africa, Brazil, including management and executive experience, and discoveries in Manitoba, Brazil. MSc Carlton.

Independent Board

Shameze Rampertab, Independent Director, Chair of Audit Committee, EVP and CFO of Asensus Surgical (NYSE)

Samir Biswas, Independent Director, President of India Metals Corp

Dan Weir, Independent Director, Chair of Comp Committee, CEO of Copper Bullet Mines Inc.

Advisors: Currently a virtual team assisting with resource, metallurgy, offtake plans

The Offering Summary

Amount of Offering : Minimum $3.5 million up to $5.5 million.

Type of Securities Being Offered : $1.5 million, Common Shares

$2.0 to $4.0 Flow Through Common Shares

Description of the Offering: Brokered Private Placement. There is no market for the Securities, The Company has signed an LOI to complete a reverse takeover of a TSXV – listed Capital Pool Company

Issuance Price  : $0.30 per Common Share

$0.40 per Flow Through Common Share.

Minimum Investment : No minimum

Use of Proceeds: Infill, resource expansion, met test drilling, extensive surveys, and new discovery  drilling, permitting, met test work, mining evaluation, financing and listing costs. 

Commissions and Finders Fees A Finder’s Fee of 1 million shares are issuable to a third party upon completion of the

Common Share Financing. Commission on the Flow Through Shares will be 7% cash + 

7% warrants.

This document contains “forward-looking information” (also referred to herein as “forward-looking statements”) under the provisions of applicable Canadian securities legislation.

Generally, these forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,

“anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will”, “occur” or “be achieved” or

the negative connotation thereof. This document also contains “historic information” and information on peer companies in the business which was not collected by nor has it been

rigorously validated by the company, however the company in its professional judgement deems the information to be valid for the purposes of continuing to explore and if possible

develop the mineral opportunities on the company’s projects.