Key Investment Highlights

Introduction

Everlast Minerals Limited (ASX: EV8) is an exploration and mining company focused on its alluvial Gaibandha Mineral Sands Project located in northern Bangladesh. The Projects have a JORC Code compliant resources of 91.2Mt of indicated resources and 283.9 Mt of inferred resources, totaling 375 Mt of resources.

The Gaibandha Mineral Sands Project is located at the Brahmaputra-Jamuna River under Gaibandha Sadar Upazilaand Fulchari Upazila of Gaibandha District in northern Bangladesh. The Company has conducted and completed initial exploration work at the Gaibandha Minerals Sands Project in two phases during 2021 and 2022.

During the first phase, the Company conducted channel sampling for a total of sixteen drilling holes, covering sand bars and riverbed of the Brahmaputra-Jamuna River. In the second phase, a total of two-hundred and forty-nine (249) holes were drilled in a 400m by 400m grid pattern, with an additional twelve twin holes drilled for quality control purpose.

Following the initial exploration activities set out above, the Group lodged applications for three mining leases  covering a total area of 2,395 hectares, with these mining leases being granted by the Government of the People’s Republic of Bangladesh on 20 June 2024. In parallel, the Company identified two additional mineral sands exploration sites with potential and has applied for exploration licences for these areas.

Terms of the Offer

Everlast Minerals Ltd is looking to undertake an IPO on ASX to raise between $4 million and $6 million via the issue of between 20 million shares and 30 million shares under the Offer at an offer price of $0.20.  The company will have an indicative market capitalisation of $26 million at maximum subscription.

Minerals Sands Industry

Mineral sands refer to concentrations of heavy minerals in an alluvial environment (sandy or sedimentary deposits near a sea, river or other water source). The mineral sands industry is involved in the mining and processing of zircon and titanium dioxide products (ilmenite, rutile and upgraded titanium dioxide products of synthetic rutile, slag and upgraded slag). The two product categories have different properties, prices and distinct end use markets.

Mineral sands are different to most commodities, however they share similarities with other commodity types, such as the importance of quality constraints of iron ore and coal or the importance of physical properties of diamonds. Most mineral sands deposits are found in unconsolidated fossil shorelines several hundreds of metres to tens of kilometres and occasionally hundreds of kilometres inland from the present coastline. Mineral sands orebodies essentially fall into two categories based on the mode of deposition: alluvial or aeolian. Alluvial deposits are further split into marine beach placers (or strandlines) and lacustrine heavy mineral accumulations.

There is strong demand for heavy minerals in industries in Bangladesh, which historically rely on imports. The descriptions of several major industries that use those minerals in large volumes include the:

• paint and coating industry
• ceramics industry
• welding electrode industry
• paper industry

Globally, substantial demand from the building and construction industry drives the global mineral sand market. Mineral sand is largely used in buildings and construction industry applications, including paints and coatings, PVC piping, and ceramic tiling. Zircon and titanium dioxide are employed in the production of sand, ceramic tiles, sanitary ware, etc.

This is a key factor driving the mineral sand market demand during the forecast period. Metal and other end-users like aerospace and automotive are expected to provide major opportunity for the market in upcoming years. However, fluctuating raw material prices along with environmental regulations have major impact on the market and is likely to hinder the growth of the market during the forecast period.

Company Overview

Everlast Minerals Limited is an Australian mineral sands exploration company which owns 99.99% of the issued capital of the Subsidiary, being a company incorporated on 25 January 2017 in the People’s Republic of Bangladesh under the Bangladesh Company Act XVIII of 1994.

The business conducted by the company is the acquisition, exploration, development, delineation, mining and, where appropriate, divestment of prospective tenements, with a specific focus on mineral sands projects in major rivers in Bangladesh.

The Company’s main undertaking, the Gaibandha Mineral Sands Project, has been explored to the stage where an independently prepared JORC Code report on the resources estimation of the Gaibandha Mineral Sands Project has been completed.

Accordingly, Everlast Minerals currently holds the following portfolio of interests:

• three (3) mining leases all dated 20 June 2024, covering a total area of 2395 hectares, located at the Brahmaputra-Jamuna River under Gaibandha Sadar Upazila and Fulchari Upazila of Gaibandha District in northern Bangladesh (“Gaibandha Mineral Sands Project”);
• one (1) exploration licence application ,dated 15 May 2023, covering a total area of 4,000 hectares, located at the Brahmaputra River under Ulipur and Kurigram Sadar upazila of Kurigram District in northern Bangladesh (“Kurigram Mineral Sands Project”); and
• one (1) exploration licence application, dated 15 May 2023, covering a total area of 4,000 hectares, located at the Padma (Ganges) River under Pabna Sadar and Sujanagar Upazila of Pabna district and Pangsa Upazila of Rajbari District of Bangladesh (“Pabna Mineral Sands Project”).

Gaibandha Mineral Sands Project

The Gaibandha Mineral Sands Project is located within the active Jamuna River, near the town of Gaibandha in the Rangpur Division in northern Bangladesh

Prior to the Company’s exploration activities, there had been no previous exploration undertaken at the Gaibandha Mineral Sands Project. However, a number of research-oriented investigations had been completed in the Jamuna River and identified at the presence of the heavy minerals in the surficial bedload of the river.

The Gaibandha Mineral Sands Project is held over active channels of the Brahmaputra-Jamuna River and the mobile sands of the river are host to heavy mineral enriched horizons typically containing 5% to 12% of total heavy minerals. During the monsoon season the river is in flood and the bedload sands are mobile. The Jamuna-Brahmaputra River carries about 1.84 billion tonnes of sediments per year from upper reaches. A major portion of the sediments are deposited as sand bars, which occupy about 50% of the area.

Planar bedding at the top of a low non-vegetated sandbar exposed during low water in November 2022. Note the patchy dark coloured garnet-rich HM lags on the top surface of the sandbar and the heavy mineral lag developing in the small swash zone at the base of the eroding bar.

Everlast Minerals summarises some of the key indicators with respect to the Gaibandha Mineral Sands Project mining leases in the table below:

Growth Strategy

In the initial term, the Company plans to advance the Gaibandha Mineral Sands Project through trial mining and production leading to full production. The Company is dedicated to commencing commercial mining at the Gaibandha Mineral Sands Project.

In addition to this, the Company plans to:

• commence preparation and exploration work on the other Projects, subject to relevant exploration licences being granted;
• continue to actively pursue exploration licences for other prospective tenements in Bangladesh for mineral exploration, resource development and production opportunities that have the potential to deliver value for shareholders; and
• consider investment through acquisition and/or in joint ventures in other regions of Bangladesh that have a strategic fit.

Management and Board

Everlast Minerals Limited is led by a board and management team with significant exploration, management and project development experience. These include:

Paul Qian – Executive Chairperson

Mr Qian has over 12 years of experience in the mineral sands field, through his engagement in various technical and operational consulting roles with a similar entity to the Subsidiary (as part of which Mr Qian assisted with preparing technical presentations, fundraising activities, relationship management with potential investors, partners and key personnel and designing exploration data management software, amongst other responsibilities), and his expertise spans the entire spectrum of this industry spans, from exploration to mining. Mr Qian also has experience in diverse fields of work including, but not limited to, finance, property development, publishing, imports and exports, stock and commodity trading, wastewater and soil treatments, oil refineries and mining. Mr Qian is currently a director of both the Company and the Subsidiary and is the sole director of Creative Mortgages Pty Ltd. Mr Qian is also the Major Shareholder of the Company.

Greg Starr – Non-Executive Director

Mr Starr has a background in leadership roles as chairman, independent director, managing director and finance director. Mr Starr has extensive expertise across diverse facets of corporate governance and financial management and has arranged equity and convertible instruments and debt financing to support business growth and stability. Mr Starr has significant experience working with companies undergoing transitions, arranged and managed initial public offerings, mergers and acquisitions, merger defences and changes in major shareholdings. Operationally, Mr Starr has managed companies from exploration phase to producer status across commodities such as heavy mineral sands, gold, copper, lead, silver, and silica sand. As a managing director, Mr Starr has led producing mining companies listed on the ASX and TSX with operations spanning Australia, Papua New Guinea, China, Fiji and Brazil. Mr Starr is currently the managing director of Metallica Minerals Limited (being a wholly owned subsidiary of Diatreme Resources Limited (ASX: DRX)).

George Edwards - Non-Executive Director

George Edwards was a past President of the Australasian Institute of Mining & Metallurgy, a past Chairperson of Standards Australia and of formerly ASX-listed SAI Global Pty Limited, an international certification company. Mr Edwards completed vocational experience working on a mineral sand treatment plant in northern NSW and later was involved with another beach sand project on Stradbroke Island in Southern Queensland. Mr Edwards has been involved in the mineral and coal industries in both Australia and internationally for over fifty-five (55) years, including having part owned and operated three export coking coal mines in Australia.

Key Offer Statistics

See ‘Summary of Offer’ section of the Prospectus for further information.

Use of Funds

Funds raised from the Offer will be applied as follows:

For further information on the Key Offer Statistics and Use of Funds, please see the prospectus.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 4 of the prospectus, Everlast Minerals Limited is subject to a range of risks, including but not limited to future capital requirements, exploration, geological and development, speculative investment, future profitability, operational risk, limited operating history, access to projects, tenure, government, regulatory and political risk and permitting risk. For a detailed summary, please refer to the Prospectus.

Section 734(6) disclosure: The issuer of the securities is Everlast Minerals Ltd ACN 620 278 800. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).

The offer may close early and the 'Pay By' dates may change. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.