Implementation of the MENGO Potash Project ... - MagIndustries

MagIndustries Corp. Booth 206-208
Mr. Stéphane A. Rigny
INDABA, 1 - 4 February 2010
Implementation of the MENGO Potash Project

Disclaimer
Except for historical information, this presentation contains
forw ard-looking statements, w hich reflect the Company's current
expectation regarding future events. These forw ard-looking
statements involve risks and uncertainties, w hich may cause actual
results to differ materially from those statements. Those risks and
uncertainties include, but are not limited to, changing market
conditions, and other risks detailed from time-to-time in the
Company's ongoing filings. We undertake no obligation to publicly
update or revise any forw ard-looking statements, w hether as a
result of new information, future events or otherw ise. In light of
these risks, uncertainties and assumptions, the forw ard-looking
events in this presentation might not occur.
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MagIndustries (TSX: MAA)
100%
100% 100%
Mengo Potash Project* Forest Products Hydroelectric Developments Magnesium Alloys
(ROC)
(Eucalyptus)
(DRC)
(ROC)
2/1/2010
* 10% Government owned
(ROC)
MAA / TSX
3
100%

Company Snapshot: MAA
MagIndustries Corp. Market Stats
Stock price 52-Week Range Cdn $ 0.78 - 0.17
Recent stock price (Feb 01 `10) Cdn $ 0.57
Shares outstanding 360.5 million
Market capitalization Cdn $ 205 million
Cash (as of December 31`09) US $ 25 million
Long Term Debt US $ 32 million
Stock Symbol / Exchange MAA / TSX
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Two Congos: Majority of MagIndustries activities
are in the Republic of Congo (ROC)
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MagForestry:
Our credential for doing business in Africa
Acquisition Execution
Two stage acquisition of 100%
ownership for cash and shares
(US$6M)
Installation of experienced
Canadian Forestry Management
Personnel
US$10M invested in forestry
operations
Return on
Investment
US$35M invested in chip mill
– commissioned July 2008
2009 revenues US$30+M
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MagForestry
Pointe-Noire Chip Mill
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MagForestry Chip mill and shipping dock in
Pointe-Noire
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MagEnergy: Company strategy being assessed
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First new entrant to the potash industry
The Mengo Potash Project
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MagIndustries signs Project Development
Framework with COMPLANT
Signing ceremony in Beijing: The Project Development Framework signed by Mr. William B. Burton,
President and CEO of MagIndustries and by Mr. Zou Baozhong, Chairman of the Board of COMPLANT
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The “PDF” includes a number of key
features
1. Schedule of milestones: The milestones relate to the completion of due diligence
and the signing of definitive documents by the end of July 2010, and targeting a start
of construction by November 2010.
2. EPC Contract: The Company has agreed to appoint COMPLANT, as Engineering,
Procurement and Construction (“EPC”) contractor for the Project.
3. Term Sheet for Debt: COMPLANT undertakes to source debt financing for 100% of
the cost of the EPC contract.
4. Product Compensation and Sharing Agreement: A portion of the production of
the Project at a price to be determined by a formula will be directed to the service of
the Project debt and for an additional period of time beyond the repayment of the
Project debt to be negotiated.
5. Option to COMPLANT for a controlling interest in the Project: An option for
COMPLANT to acquire a 50.1% interest in the Project at a price to be determined by a
third party evaluation.
6. Exclusivity to COMPLANT: a period of six months exclusivity to COMPLANT.
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MagMinerals Mengo Potash Project:
1,200,000tpy in 2012/2013
Signed comprehensive Potash
Investment Agreement
Gas Supply Agreement for long term
supply of currently flared gas
Exclusive rights to large potash
carnallitite deposit
Strategic location relative to high
demand potash end-markets
Proximity to high-capacity port with
existing rail capabilities
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Largest mineral permit holder in the Kouilou
region with 2056 km2
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Where we started in 1997 -
to Exploitation license 2009
Mineral Exploration Area = 1,472 km 2
Mining License = 136 km2
Resource Report
(NI43-101) = 25 km 2
Drill holes completed historically (1965-1990) 118
Production wells included in technical report 12
43-101 Proven and Probable Reserves (KCl) 1)
43-101 Inferred Reserves (KCl) 2)
Proven and Probable Reserve Life (at 600k tpy)
33.2 MMt
209 MMt
>54 years
1) The 2009 Technical Report estimates proven reserves of 151.2 million tonnes of carnallitite, at a carnallite grade of 64.4% of ore and a KCl grade of 17.3% of ore,
concluding with proven reserves of 26.1 million tonnes of KCl. The 2009 Technical Report further estimates probable reserves of 40.3 million tonnes of carnallitite, at a
carnallite grade of 65.7% of ore and a KCl grade of 17.6% of ore, concluding with probable reserves of 7.1 million tonnes of KCl.
2) The technical report estimates inferred reserves of 1215.7 million tonnes of carnallitite, at a carnallite grade of 64.1% of ore and a KCl grade of 17.2% of ore,
concluding with proven reserves of 209 million tonnes of KCl.
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MagMinerals –
Mengo Potash Project
Phase Phase I Phase II
Description 600,000 tpy potash plant 600,000 tpy expansion
Status/
Targeted Timing
Construction Cost
Estimate
Feasibility study Feb/08
Debt financing 2H/09
Pre construction activities
start Oct/08
US$150 MM development
costs spent to date
Construction US$835 MM
Includes 26km gas pipeline
Includes Phase II infrastructure
Production Start-up 2012 2013
*Subject to re-scheduling and re-pricing with Complant as EPC contractor
Reserve update (NI 43-101)
in August 2008
Final feasibility 2011
Technical feasibility update
(June 2008) indicates
US$423 MM
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MagMinerals in Context
MagMinerals has access to existing infrastructure
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MagMinerals Location Advantages
CANADA
9,505 n.m.
Legend:
Country Nautical Mile
Shipping Distance
BRAZIL
BELARUS
5,874 n.m.
ISRAEL
6,234 n.m.
RUSSIA
6,259 n.m.
CONGO (ROC)
3,556 n.m.
Ports: Pointe-Noire (ROC), Rio de Janeiro (Brazil), Vancouver (Canada), St. Petersburg (Russia),
Kaliningrad (Belarus), Tel-Aviv (Israel). Source: Fertecon, www.searates.com.
Shortest shipping distance to key Brazilian and African markets
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Sustainable competitive advantage
Transportation cost
advantages
Low cost
energy access
Positive labor
conditions
Only 25 km on available rail to port
10 acre port site exclusive 68 y lease
~$40/t land freight savings vs. comp
Shortest sailing distance to Brazil
Gas supply agreement concluded with ENI and
ROC government
Allows low cost, short construction time solution
mining application
Availability of local labor, training foreseen
Strong reputation through MagForestry
Potential for best economics in the industry
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Marcel Rigny Base Camp
by National Highway 1
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Drill sites…
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Finished production well that will feed
potash-rich brine to our production facility
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Pre construction ground work at the
potash plant site
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October 22, ‘09: Presidential visit to
MagMinerals Potasses Congo future plant site
Ceremonial first stone: His Excellency Mr. Denis Sassou Nguesso,
Mr. Pierre Oba Minister of Mines and Geology, Mr. Bill Burton,
MagIndustries' President and CEO and Mr. Stephane Rigny,
MagIndustries' Senior Executive Vice President
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October 30, ’09: Installation of gas pipeline from
Djeno treatment plant to potash project site.
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Board of Directors
William B. Burton
Founder, President & CEO, Director MagIndustries.
BSc Honours Economic Geology, 30 years global
experience in identifying and developing mineral
properties. 12 years with RTZ.
Stéphane A. Rigny
Senior Executive VP & Director MagIndustries.
MBA Finance, family history with ROC, 11 years of
project and finance experience in francophone
Africa, with Rand Merchant Bank (e.g.; $400M
project finance in the ROC and the DRC).
Bryan Benitz
Chairman and Director
Private investment advisor specializing in financing
junior resource companies. Independent Director.
Richard Linnell
Director, Johannesburg.
Geologist, 35 years African resource industry.
Previously Regional Director, African Exploration
and Development for Billiton; Director of BHP
Billiton (SA) Ltd. Independent Director.
Gerard Munera,
Director
Long history in the mining and metals industry as
Senior Executive Officer, notably with Union
Miniere, Pechiney, RTZ, and Minorco. Independent
Director.
Mustapha Niasse,
Director.
Former PM of Senegal, Key negotiator in Sun City
Peace Accord which resulted in the power sharing
Government for the DRC. Close friend of President
Kabila. Independent Director.
Gary E German,
Director
Engineer, extensive experience with Noranda and
others developing mining assets globally.
Independent Director.
Victor Wells,
Director, Chairman of the Audit Committee.
30 years financial management with resource
companies. Independent Director.
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Senior Management
Rich Morrow
Executive VP
Corporate Development
23 years experience in investment research
and corporate development.
Mike Edwards
Senior VP, Projects
45 years experience planning and building
major resource projects in Africa.
Kate Harcourt
Director of Health-Safety
Environment and Community
CEnv, 19 years experience of mining
environmental issues. Extensive African
experience including DRC, Kenya,
Mozambique
Dan Orlando
VP MagForestry
25 years experience in management and
operations in the Canadian Forestry
Industry.
Sally Burton,
Corprate Secretary
A founder of MagIndustries with over 22
years in administration of public and private
resource companies
Georges Kyriakos
VP MagEnergy Inc.
Engineer with extensive business operating
experience in Africa especially in the DRC.
Widespread network of political contacts in
Central Africa.
Achim Strauss
VP Engineering & Development
Mechanical engineer, 6 years with Salzgitter
Anlagenbau GmbH principally evaluating
magnesium projects. Over 17 years of
experience in business and project
development
Will C. Burton
Interim CFO and Corporate
Controller
Chartered Accountant. MagIndustries
corporate controller since 2006. Previously
with Deloitte & Touche.
Patrick Stevenaert
Deputy General Manager
MagMinerals Potasses Congo SA.
15 years of project development &
operational experience in Africa.
Knut Rødne
Director of Communication &
Business Development
MSc. Engineering. Over 10 years
experience in industrial research,
business and project development.
Richard Pratt
General Counsel
B.Comm,LBB. 20 years experience in
major corporate financing transactions
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Booth 206 - 208
www.magindustries.com