April 14, 2016
Research #3
Lithium in Utah, USA
Company Details
Voltaic Minerals Corp.
(formerly Prima Diamond Corp.)
Suite 1450 - 789 West Pender Street
Vancouver, BC, V6C 1H2 Canada
Phone: +1 604 681 1568
Email: djones@voltaicminerals.com
Web: www.voltaicminerals.com
Shares Issued & Outstanding: 6,514,700
Chart
Prima Diamond becomes
Voltaic Minerals with
focus on energy metals
Today, when the market opens in Canada, Prima Diamond
Corp. will trade under its new corporate name Voltaic Minerals
Corp. (symbol: VLT). The 5:1 share consolidation has also been
approved by the exchange and the new share structure will become
effective at the opening. The current 32.6 million shares issued and
outstanding will be reduced to a total of 6.5 million shares, whereas
its share price will be readjusted from yesterday’s close of $0.055
to approximately $0.275. In February, the company announced
the acquisition of the Green Energy Project in Utah with historic
lithium grades of up to 1,700 mg/L (read Rockstone’s report here).
Canada (TSX.V)
Canadian Symbol: VLT (formerley PMD)
Current Price: $0.055 CAD (April 13, 2016)
Market Capitalization: $1.8 million CAD
Chart
Germany (Frankfurt)
German Symbol / WKN: 2P61 / A2AG5Q
Current Price: €0.042 EUR (April 13, 2016)
Market Capitalization: €1.4 million EUR
Did you know? Volt (symbol: V) is the
derived unit for electric potential, electric potential difference (voltage), and electromotive
force. The volt is named in honour of the Italian physicist Alessandro Volta (1745–1827),
who was an Italian physicist, chemist, and a
pioneer of electricity and power, who is credited as the inventor of the electrical battery.
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Research #3 | Voltaic Minerals Corp.
A
lso in February, the company
announced a private placement
of up to 15 million units. The
proceeds ($750,000) may get invested
into the development of the company’s
Green Energy Lithium Project in Utah.
The Green Energy Lithium Property –
which covers 1,684 hectares with close
proximity to rail head, power and paved
roads – is located in the Paradox Basin,
where more than 50 oil and gas wells
have been drilled in a 80 km wide radius from the property. Oil and gas wells
in the area have shown to be capable
of flowing in excess of 50,000 barrels
of brine per day. Historic wells on the
Green Energy Property were reported
to be “flowing artesian wells”, i.e. no
pumping may be required as the supersatured brines (up to 1,700 mg/L lithium
with over 40% dissolved solids) flow to
the surface under the natural pressure
of the aquifer. During historic oil and gas
exploration, several blow-outs occurred
when intersecting brines under pressure
within the Paradox Formation.
Readers should not rely on the Green
Energy Project’s historic resource of 15
million barrels (>2 billion liters) of brine
containing 5,750 t lithium (30,535 t
Li2CO3 / lithium carbonate), 157,000 t
calcium, 576,450 t magnesium chloride
and 96,000 t sodium.
Instead, Voltaic’s mission to create sharholder value is to re-sample the brines,
by re-entering existing shut-in wells on
the property, and to upgrade the historic
resource estimate to NI43-101-compliant standards. This will include metallurgical work, baseline and scoping work
and engineering studies.
Management and insiders will control
over 40% of the issued and outstanding shares on a post-consolidation and
post-financing basis. On March 28, the
company announced the results of its
annual general and special meeting in
Vancouver, where 48% (15.8 million
shares) of the outstanding shares were
represented at the meeting and where
shareholders approved to consolidate
the share capital of the company on the
basis of 5 pre-consolidated shares for
every 1 post-consolidated share. Each
of the director nominees proposed by
management for election was elected by
100% of the votes that was cast.
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Research #3 | Voltaic Minerals Corp.
Darryl Jones, Sean Charland, Dusan Berka and Foster Wilson were elected to the
board of directors.
Dave Hodge (President)
Mr. David Hodge, President and Director of Zimtu Capital Corp. has an extensive background in business that includes over 20 years of experience in the
management and financing of publicly-traded companies. He has been a director of mineral exploration companies
since 1996, and serves on the boards of
Commerce Resources Corp. and Equitas
Resources Corp.
Foster Wilson (Director)
Mr. Wilson has over 30 years of experience in exploration and development
ranging from reserve drilling and estimation, feasibility studies, mine permitting and development. He has worked
in various capacities for Placer Dome
Inc., Echo Bay Mines Ltd., American
Bonanza Gold Corp. and various other
junior exploration companies. Also currently serving as President of Mesa Exploration Corp.
Darryl Jones (VP Corp. Development)
Mr. Jones has over 15 years of capital
market experience and an established
financial network. He was an Investment
Advisor with PI Financial Corp. Canada
and Raymond James Ltd. Canada. Jones
was responsible for raising significant
risk capital for growth companies in all
sectors, with a particular focus on natural resources. He brings a network of
contacts within the financial community
from across North America and Europe.
Sean Charland (Director)
Mr. Sean Charland is a seasoned communications professional with experience in raising capital and marketing
resource exploration companies. His
network of contacts within the financial
community extends across North America and Europe. Mr. Charland also serves
as a Director of Arctic Star Exploration
Corp. and Zimtu Capital Corp.
Dušan Berka (P.Eng., Director)
Mr. Berka has over 40 years of international business experience spanning
Europe and the Americas with extensive
experience in the finance, marketing and
administration of public companies, having served as a Director and Officer of
various public companies traded on the
TSX, TSX Venture and NASDAQ exchanges. A graduate engineer with a M.Sc.
(Dipl. Ing.) degree from Slovak Technical
University, Bratislava, Slovakia (1968),
Mr. Berka has been a member of the Association of Professional Engineers and
Geoscientists of British Columbia since
1977. Mr. Berka currently also serves as
a Director of 92 Resources Corp., Belmont Resources Inc. and Megastar Development Corp.
Read Rockstone’s previous reports on
the Green Energy Lithium Project:
Research #2: “Early Warning Report on
Prima Diamond” (March 18, 2016)
Research #1: “Prima Diamond Acquires
the Green Energy Project in Utah with
Historic Lithium Grades of 1700 mg per
liter” (February 18, 2016)
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Research #3 | Voltaic Minerals Corp.
About “Voltaic“
Wikipedia on the term “voltaic/battery
electricity“:
Alessandro Volta built and described the
first electrochemical battery, the voltaic
pile, in 1800 (see picture in the middle,
where Volta is demonstrating his pile to
French emperor Napoleon Bonaparte).
The voltaic pile then enabled a rapid
series of discoveries including the
electrical decomposition (electrolysis)
of water into oxygen and hydrogen by
William Nicholson and Anthony Carlisle
(1800) and the discovery or isolation of
the chemical elements sodium (1807),
potassium (1807), calcium (1808), boron
(1808), barium (1808), strontium (1808),
and magnesium (1808) by Humphry
Davy.
The entire 19th century electrical
industry was powered by batteries
related to Volta‘s (e.g. the Daniell cell
and Grove cell) until the advent of the
dynamo (the electrical generator) in the
1870s.
Alessandro Giuseppe Antonio Anastasio
Volta (18 February 1745 – 5 March 1827)
was an Italian physicist, chemist, and a
pioneer of electricity and power, who is
credited as the inventor of the electrical
battery and the discoverer of methane.
He invented the Voltaic pile in 1799 and
the results of which he reported in 1800
in a two-part letter to the President of
the Royal Society.
With this invention, Volta proved that
electricity could be generated chemically
and debased the prevalent theory that
electricity was generated solely by living
beings.
Volta‘s invention sparked a great amount
of scientific excitement and led others
to conduct similar experiments which
eventually led to the development of
the field of electrochemistry.
Alessandro Volta also drew admiration
from Napoleon Bonaparte for his
invention, and was invited to the Institute
of France to demonstrate his invention
to the members of the Institute. Volta
enjoyed a certain amount of closeness
with the Emperor throughout his life and
he was conferred numerous honours by
him.
Alessandro Volta held the chair of
experimental physics at the University of
Pavia for nearly 40 years and was widely
idolised by his students.
Despite his professional success, Volta
tended to be a person inclined towards
domestic life and this was more apparent
in his later years.
The SI unit of electric potential is named
in his honour as the volt.
The volt (symbol V) is the derived unit
for electric potential, electric potential
difference (voltage), and electromotive
force.
A voltaic pile, the first battery
Batteries convert chemical energy directly to electrical energy. A battery consists
of some number of voltaic cells. Each
cell consists of two half-cells connected
in series by a conductive electrolyte containing anions and cations. One half-cell
includes electrolyte and the negative
electrode, the electrode to which anions
(negatively charged ions) migrate; the
other half-cell includes electrolyte and
the positive electrode to which cations
(positively charged ions) migrate. Redox
reactions power the battery. Cations are
reduced (electrons are added) at the cathode during charging, while anions are
oxidized (electrons are removed) at the
anode during charging. During discharge, the process is reversed. The electrodes do not touch each other, but are
electrically connected by the electrolyte.
Some cells use different electrolytes for
each half-cell. A separator allows ions
to flow between half-cells, but prevents
mixing of the electrolytes.
5
Disclaimer and Information on
Forward Looking Statements:
All statements in this report, other than
statements of historical fact should be considered forward-looking statements. Much
of this report is comprised of statements of
projection. Statements in this report that are
forward looking include that Prima Diamond
Corp. or any other company or market will
perform as expected; that Prima Diamond
Corp. will complete today’s announced
transaction; that Prima Diamond Corp. or
its partner(s) can and will start producing
and selling any kinds of products; that the
company can raise sufficient funds for the
transaction, exploration and corporate
matters; that any of the mentioned plans,
comparisons with other companies, regions
or numbers are valid or economic. Such
statements involve known and unknown
risks, uncertainties and other factors that
may cause actual results or events to differ
materially from those anticipated in these
forward-looking statements. Risks and uncertainties respecting lithium companies are
generally disclosed in the annual financial or
other filing documents of Prima Diamond
Corp. and similar companies as filed with the
relevant securities commissions, and should
be reviewed by any reader of this report.
In addition, with respect to Prima Diamond
Corp., a number of risks relate to any statement of projection or forward statements,
including among other risks: the receipt of
all necessary approvals and permits; the
ability to conclude a transaction to start or
continue exploration; uncertainty of future
market regulations, capital expenditures and
other costs; financings and additional capital
requirements for exploration, development,
construction, and operating of a facility; the
receipt in a timely fashion of further permitting for its legislative, political, social or economic developments in the jurisdictions in
which Prima Diamond Corp. carries on business; operating or technical difficulties in
connection with production or development
activities; the ability to keep key employees,
joint-venture partner(s), and operations
financed. There can be no assurance that
such statements will prove to be accurate, as
actual results and future events could differ
materially from those anticipated in such
statements. Accordingly, readers should not
place undue reliance on forward-looking information. Rockstone and the author of this
report do not undertake any obligation to
update any statements made in this report.
Research #3 | Voltaic Minerals Corp.
Disclosure of Interest and
Advisory Cautions:
Nothing in this report should be construed
as a solicitation to buy or sell any securities
mentioned. Rockstone, its owners and the
author of this report are not registered
broker-dealers or financial advisors. Before
investing in any securities, you should consult
with your financial advisor and a registered
broker-dealer. Never make an investment
based solely on what you read in an online or
printed report, including Rockstone’s report,
especially if the investment involves a small,
thinly-traded company that isn’t well known.
The author of this report is paid by Zimtu
Capital Corp., a TSX Venture Exchange listed
investment company. Part of the author’s
responsibilities at Zimtu is to research and
report on companies in which Zimtu has an
investment. So while the author of this report
is not paid directly by Prima Diamond Corp.,
the author’s employer Zimtu will benefit
from appreciation of Prima Diamond Corp.’s
stock price. In addition, the author owns
shares of Prima Diamond Corp. and Zimtu
Capital Corp. and thus would also benefit
from volume and price appreciation of its
stocks. In this case, Prima Diamond Corp.
has one or more common directors with
Zimtu Capital Corp. Thus, multiple conflicts
of interests exist. Therefore, the information
provided herewithin should not be construed
as a financial analysis or recommendation
but strictly as an advertisment. The author’s
views and opinions regarding the companies
featured in reports are his own views
and are based on information that he has
researched independently and has received,
which the author assumes to be reliable.
Rockstone and the author of this report do
not guarantee the accuracy, completeness,
or usefulness of any content of this report,
nor its fitness for any particular purpose.
Prima Diamond Corp. has not reviewed
this report prior to publication. Lastly, the
author does not guarantee that any of the
companies mentioned in the reports will
perform as expected, and any comparisons
made to other companies may not be valid
or come into effect. Please read the entire
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of the Disclaimer, do not access this website
or any of its pages including this report in
form of a PDF. By using this website and/
or report, and whether or not you actually
read the Disclaimer, you are deemed to
have accepted it. Information provided
is educational and general in nature.
Analyst Profile and Contact
Stephan Bogner (Dipl. Kfm. FH)
Mining Analyst
Rockstone Research
8050 Zurich, Switzerland
+41-44-5862323
sb@rockstone-research.com
Stephan Bogner
studied at the
International School
of Management
(Dortmund,
Germany), the
European Business
School (London)
and the University of Queensland
(Brisbane, Australia). Under supervision
of Prof. Dr. Hans J. Bocker, Stephan
completed his diploma thesis (“Gold In
A Macroeconomic Context With Special
Consideration Of The Price Formation
Process”) in 2002. A year later, he
marketed and translated into German
Ferdinand Lips‘ bestseller („Gold Wars“).
After working in Dubai for 5 years, he
now lives in Switzerland and is the CEO of
Elementum International AG specialized
in duty-free storage of gold and silver
bullion in a high-security vaulting facility
within the St. Gotthard Mountain Massif
in central Switzerland.
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