BUILDING THE NEXT PHOSPHATE MINING HOUSE

Mejillonnes phosphate project

What is it?

Phosphate mine in Chile

Where is it?

Next to the deepwater port of Mejillones in Chile

How big is it?

It covers 6,300 hectares

What is Handa doing with it?

We are going to mine it

How much does it cost?

Approximately US$650,000 to mine-ready and US$15 million to build the mine

What will we get from it?

Approximately US$20 million a month of free cash flow for more than 30 years once in production

What are the timelines?

18 months to mine-ready and an additional 12 months to production
Before we target other projects, let us first get the Mejillones phophate project mine ready. We will therefore focus on the following milestones in the coming 6 months:

Milestones

Complete additional drilling on the Mejillones project

Drilling

Resource

Declare a resource

Take samples for detailed metallurgical test work

Testing

Plant design

Complete plant design and costing

Complete mine design and costing

Mine design

Profile

Determine capital profile

Apply for mining permit

Permit

Summary

The Mejillonnes phosphate project in Chile is 100% owned by Handa. We have ownership of 13 exploration and 8 exploitation concessions believed to be highly prospective for phosphate production. The Project covers a contiguous area of approximately 6,300 hectares situated south of the town and deep-water port of Mejillones approximately 50km north of Antofagasta.
Our Mejilonnes phosphate project is being fully funded by ReThink Resources on a standalone basis. This means our shareholders can have peace of mind to be a part of a mine-ready project while enjoying minimum dilution of the company or current cash resources, and maximum returns in as short a period of time as possible. Together with our shareholders we will become a key role-player in a significant part of the South American market.
NVP (U$m)

0
million
@ 7,5% DCF
Build capital of less than
0
million
Revenue of US$

0
million
(LOM of 15 years)
EBITDA of US$

0
million
PAT of US$

0
million
Phosphate price of US$
0
/t

Tax Rate

18.5%

IRR

701%

In situ P2O5 grade

5,39%

Saleable P2O5 grade

+25%

Recovery & concentrate factor

90%
assumed

Profit margin over LOM

62%
low operating cost of
US$35/t

LOM

+45 years

LOM

15 years
modeled