1) About the Team:
Wayne Tisdale (Independent Director) and his team have a recipe for success. Over the past 15 years in varying industries, Wayne and his team have crafted and sold 5 highly successful companies in a row.
These successes include:
- Rainy River - Gold - $1.2 Billion at its peak
- Xemplar - Uranium - $1 Billion at its peak
- Ryland Oil - Oil & Gas - $114 Million sale
- Webtech Wireless - Tech - $300 Million at its peak
- Pure Energy - Lithium - $65 Million at its peak
All in all, this team totals $2.7 Billion worth of value created for shareholders.
Their recipe for success is simple but extremely effective:
- Notice a trend in an industry and get in early
- Acquire, develop and finance the right assets
- Back it all with a world-class team
Their next big target: Cobalt
We believe that the world is evolving from fossil fuels to renewable (green) energy to power our lives. Unlike traditional power plants that produce a consistent flow of energy, renewable sources like Wind and Solar only produce energy when the sun shines or the wind blows, so we must store the energy in batteries in order to use the energy consistently. The current battery of choice to store all our future energy is the Lithium-ion battery, which consists of Lithium (LI), Cobalt (CO), and Oxide (O2).
Cobalt makes up approximately 35% of the current Lithium-Ion battery mix and demand for the metal has been sky-rocketing as of late. When Wayne started Pure energy in 2015, the price of Lithium was only around $5,000 per ton. It has since spiked up to a staggering high of around $23,000/ton (a 450% increase). This spike triggered a major rush of new lithium companies and investors who got into lithium companies early saw returns as high as 1000-2000% in some cases.
The price of lithium went up because the demand for lithium went up thanks to recharge-able batteries in our consumer electronics, electric vehicles and soon to be in our homes (with companies like Tesla, Apple, Samsung and Panasonic leading the charge). The same demand drivers that pushed the price of lithium up, are also at play for the price of Cobalt. That being said, we have only seen Cobalt rise 20-30% while lithium rose 400%+.
Cobalt is about to play catch up!
In a bold wager on higher Cobalt prices, half a dozen funds, including Swiss-based Pala Investments and China's Shanghai Chaos, have purchased and stored an estimated 6,000 tonnes of cobalt, worth as much as $280 Million, according to the investors, traders and analysts.
In order to capitalize on the coming surge in the Cobalt industry, Wayne and his team have founded Scientific Metals Corp (TSX.V - STM) (OTC - SCTFF).
The Vision: Help the world transition from fossil fuels to renewable energy
The Mission: To acquire and develop world-class cobalt assets in ethical, sustainable jurisdictions to meet the significant global increase in demand.
3) About the STM Projects
Iron Creek Cobalt Property, Idaho, USA
The Iron Creek Cobalt Property is located in Lemhi County, Idaho, along the most prolific trend of cobalt mineralization in the USA, the Idaho Cobalt Belt. The property benefits from a substantial amount of historical exploratory work, including approximately 30,000 feet of diamond drilling, and the mining of 1,500 feet of underground workings.
The Paradox Basin Lithium Property, located in central Utah, encompasses 6000 acres and lies approximately 15 kms west of the city of Moab. The property consists of 334 mineral claims that contain 8 historic oil & gas drill holes with fluid analysis from the immediate area ranging from 81 to 1,700 ppm lithium in saturated mineral brines.
The Deep Valley lithium property, located in west-central Alberta, consists of a 6,648 ha (16,427 acres) permit that encompasses an area of reported enrichment of lithium brines. The property is located in the active Fox Creek - Sturgeon Lake area of Alberta where historic samples of formation waters (brines) have returned values of 140 mg/L (ppm) lithium.
- Within the historic Idaho Cobalt belt
- 15 miles north is a project owned by a comparable company: eCobalt Solutions (ECS.V). This company owns over 3 million tonnes of cobalt from their project in the same area
- This area is known of producing the highest grade of cobalt within the USA
- Only high grade cobalt asset with significant tonnage besides that of E Cobalt (ECS)
- 30,000 feet of historic drilling has been completed on this location by previous operators (Major mining companies ie. Noranda was last to explore this region)
- Historic non-compliant resources of 1.3 million tons of Cobalt grading 0.59%
(ECS has 3 million tons grading .60%)
Blue Sky Potential:
Historic reports suggest that the resource potential can be significantly expanded from this project. Estimates could suggests up to 10 million tons of Cobalt potential which would make it the largest pure cobalt play project in North America.
Capital Structure Breakdown:
Total I/O – 43 Million Shares
Fully Diluted – 47 Million Shares
% ownership by management/directors - 25%
Wayne Tisdale and team are major stakeholders in Scientific Metals Corp. Their focused is on maintaining sound structure while creating shareholder value.
Financings to date:
- $2.5 Million Private Placement closure at $0.20
- $1 Million Private Placement at $0.45
Currently the company is fully financed to execute its 2017 exploration program.
Ultimate Goal (24 month vision):
- Prove up at least 10,000,000 tons of production grade cobalt
- At today's prices, that would be worth well over $1 Billion
- Acquire growth to become the largest pure play Cobalt Company in North America
- Advance projects into production or sell to a major company
Comparable Cobalt Companies:
eCobalt Solutions (ECS.V)
- Their main project is 15 miles away from STM's
- From this project, ECS owns more than 3 million tons of Cobalt
- 52 week low = $0.16
- 52 week high = $1.48
- Market Cap = $165 Million
- STM's Market Cap is currently only approximately $25 Million
- Comparable ECS's Market Cap is over approximately $165m, which owns approximately 3 Million tons of Cobalt
- STM estimates that the current exploration program (to be completed by the end of 2017) could allow them to confirm at least 3 Million tons of Cobalt
- If that allows their market cap to match eCobalt's (ECS) that would mean a 500% increase from today's stock price. If STM acquires additional Cobalt properties or finds more than 3 million tons at Iron creek, then the market cap could rise well beyond $165 Million
- Finally, if the price of Cobalt moves up anywhere close to as quickly as Lithium did, this could dramatically and swiftly increase the value of this tonnage