Lava Blue Ltd

Transaction Summary

Investment Highlights

Company Overview

Lava Blue is a tightly held unlisted public company with a professional and HNW investor base.

Vision:
Providing high purity, high value speciality materials for the energy transition.

Mission:
Build sovereign capability in critical minerals processing, using renewable energy, AI enabled process and design, and recyclable reagents.

Tactics:

• Build a network of competent licensees and joint venture partners
• Grow significant cashflow from royalties and technology transfer services
• Provide market confidence by demonstrating the suitability of specialty materials with key customer partnerships
• Demonstrate flexible patented minerals processing to supply critical speciality materials
• Investigating opportunities in critical minerals from mine wastes and tailings.

Assets:
Lava Blue has built and is operating PRiSM (the Centre for Predictive Research in Specialty Materials) at Redlands, Brisbane.

Underpinning the company’s Intellectual Property strategy are 3 lodged patents, and 3 licensees, as well as a long-term collaborative research contract with QUT which provides Lava Blue with ownership of intellectual property from all commissioned research undertaken.

Products & Services

The structure of its licensing arrangements delivers initial license fees, typically in a period when Lava Blue provides scientific services to support licensee engineering studies and planning for industrial scale production. Licensees will also pay royalties on sale of product for a period of 20 years from the commencement of sales. Lava Blue expects first royalties to commence in FY 25-26.

Lava Blue also has an extensive mineral property portfolio and an active minerals development program in its subsidiaries:

• Cloncurry Industrial Minerals Pty Ltd – Silicon metal
  Major high purity quartz resource on the edge of Cloncurry being studied for suitability to feed a conventional silicon metal smelter using charcoal as a reductant
• North East Lithium Pty Ltd – Targeting Tin, Tungsten, Lithium
  >1100sq km of North east granites exploration permits in the historic tin mining areas north of Mt Surprise and west of Mt Garnet,  high prospectivity for lithium, tungsten, tantalum and other strategic metals
• Mt Rosey Mining Company Pty Ltd
  Lava Plains exploration permits and mining lease for exploration and development of unconventional and strategic minerals including uniquely well suite kaolin hosted HPA resource and olivine alkaline basalts for lime displacement and accelerated CO₂ sequestration in soils.
• New Horizons Minerals project
  Lava Blue recently entered into an MoU with the Queensland Department of Resources to examine opportunities for processing of mine waste materials using Lava Blue proprietary techniques.

Business Model
Lava Blue has a capital light business model developing long-term royalty streams from multiple mineral projects.
Licensees also pay for invoiced scientific services and license fees prior to the commencement of royalties on production.

Prospects
Payments for scientific services commenced in 2021 and License fees commenced in 2022. Lava Blue has two active licensees working towards financial close on their projects, and a third licensee in advanced negotiations with others in the pipeline who have commenced test work.
Lava Blue is planning to JV interests in its mineral exploration projects with listed explorers.

Transaction Overview

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