Ormus SpA | Investment Opportunity

Ormus SpA | Lithium Production Project


Ormus is looking for investors interested in participating on a Lithium Production Project, hereafter “the Project,” focused on the worldwide industrial lithium market, including the EV battery manufacturers. The project considers environmentally friendly lithium extraction and purification to the highest levels to be able to deliver the purest lithium available -at competitive prices- to fulfill the needs of more than ten lithium-user industries worldwide. The Salar de Maricunga and Salar de Atacama salt fields are well known internationally as the best in the world in brine lithium content.

I. Project Resources:

  • A. Concessions:

    Ormus has been appointed exclusively by the license holders to seek purchase offers for ≈ 10,700 hectares (≈ 26,440 acres) of well-located prime lithium brine concessions deposits on the Salar de Maricunga, Atacama Region, Chile. The depths of the concessions exceed 500 m (≈1.640 ft.) in several areas. The salt flat is positioned at an elevation of 3,760 m. ASL, or about 12,336 ft. ASL. The Maricunga salt field is located at approximately 170 km northeast of Copiapo city. The multipurpose seaport of Caldera is situated about 80 km (50 miles) northwest from Copiapo. The concessions holders have authorized Ormus to propose the Project to interested investors.
  • B. About Exagon

    Exagon is an industrial holding company that controls six firms specializing in the design and development of specialized electronic systems and sub-systems. These systems are backed by proprietary AI/ML technologies.

    Fields of Operation

    Their expertise extends to various sectors:

    • Defense and aerospace
    • Nuclear energy
    • Telecommunications
    • Mining (especially with reference to oil & gas)
    • Industrial processes

    The involvement in industrial processes also indicates Exagon's proficiency in analytical and predictive components of plant architectures, showcasing their capability to design any production system in partnership with specialized companies.

    Exagon and Ormus

    Ormus represents Exagon in the Latam region and is currently executing projects there. Given the need for an efficient, clean, and advanced mining process to extract and purify lithium sustainably, Ormus recognized Exagon's capabilities. As a result, Ormus proposed a collaboration with Exagon for the project development, which Exagon accepted.

    Role in the Project

    Leveraging Exagon's expertise, they will serve as the primary project contractor. Their responsibilities encompass:

    • Design
    • Construction
    • Initial operation of modular plants

    For these tasks, Exagon will collaborate with its specialized external subcontractors and partners, which include some of the top 10 firms in industrial manufacturing and treatment systems.

    Exagon's Visionary Approach

    Exagon's team focuses on three central roles:

    1. Technology & Process Transformation
    2. Business and Innovation Development
    3. Cutting-edge industrial predictive technologies
    Noteworthy Technologies

    Among the myriad of technologies Exagon has developed, the following stand out:

    • A groundbreaking neuro-plastic processor based on Adaptive Core Computation, positioning Exagon as a front-runner in predictive AI systems.
    • A subsystem of electronics and instrumentation utilized across multiple industries such as aerospace, defense, nuclear engineering, and quantum computing.
    • State-of-the-art R&D facilities where exemplary research is undertaken in areas like quantum physics, robotics, and process engineering.

    C. Lithium Production Project at Salar de Maricunga

    The Salar de Maricunga lithium project will be designed around a specialized modular plant system. This system will emphasize:

    • Direct Lithium Extraction (DLE)
    • Brine Management
    • Brine Concentration
    • Lithium Purification
    • Wastewater Treatment
    • Power Supply
    • Infrastructure

    These modules will be meticulously crafted, leveraging Exagon’s AI/ML technology and algorithms. These tools will be pivotal in various key process areas, enhancing performances and driving optimal business outcomes. Exagon’s AI mechanisms will be responsible for analyzing both available and previously inaccessible data, streamlining the decision-making process for module operators.

    D. Preliminary Products

    The project has identified several primary lithium products, including:

    • Lithium Carbonate
    • Lithium Hydroxide
    • Lithium Concentrate
    • Lithium Metal
    • Butyl Lithium
    • Lithium Chloride

    E. Project Target Markets

    After comprehensive studies conducted by both Exagon and Ormus, several target industries were pinpointed:

    • Aerospace and Defense
    • Automobile
    • Energy
    • Fine Chemicals
    • Energy Production
    • Pharmaceuticals
    • Li-Ion Batteries
    • Glass and Ceramics
    • Medical
    • Lubricants
    • Green Energy Storage
    • Electric Vehicles
    • Al/Li Alloys

    II. Project Requirements

    A. Investment Environment

    Chile stands out as a prime destination for international mining investors, offering:

    • Rich mineral endowment with vast ore deposits
    • High-altitude and isolated locations
    • Investor-friendly regulations
    • Stable economic and political environment
    • Robust mining profitability
    • Mature mining infrastructure with strong roads and ports
    • Qualified human resources

    Major Chilean mining corporations and international entities continue their successful operations in the country. The mining sector holds a stable regulatory position, especially since it's a vital taxpayer. Notably, in 2022, lithium exporters surpassed Codelco in tax contributions. Mining exports consistently account for over half of Chile's total exports.

    Mining plays a pivotal role in Chile's economy, driving its economic progression. Over the past decade, mining has provided an average of 10% of national employment and contributed 10.4% to the GDP. The sector has observed a growth of roughly 3% annually since 2019, peaking at 14.6% in 2021.

    The timing for the Lithium Production Project is opportune. Forecasts indicate a surge in lithium demand in the upcoming years. As per Germany’s Statista, by 2030, the global lithium demand might exceed 2.4 million metric tons, effectively doubling the predictions for 2025. The rise in battery requirements for electric vehicles is anticipated to significantly bolster lithium consumption in the next decade, potentially reaching 3.8 million tons by 2035.

    EY's studies echo the sentiment. They highlight Chile's allure as a mining destination, enriched with vast mineral deposits, investor-friendly policies, economic stability, and a mature mining ecosystem. Over the past decade, mining has attracted an average of 16% of the country's investments. In 2022 alone, Foreign Direct Investment (FDI) contributed to 50.3% of Chile's mining investments.

    B. Project Finance

    Ormus is actively soliciting indicative proposals for acquiring the lithium concessions at the Salar de Maricunga. This includes the design, development, and operation of the Project in collaboration with the Exagon Group.

    Currently, establishing an accurate budget for the Project's development is challenging due to the undisclosed objectives and requirements of potential clients. However, this preliminary economic data aims to offer a more holistic understanding of the Project. Upon discerning the objectives and ambitions of potential investors, detailed operational budgets can be formulated and shared. Below are some preliminary project investment figures for consideration.

    The aforementioned DLE plant and Purification plant figures were utilized in preliminary evaluations for a prospective client in 2021. The project's evaluation yielded an IRR of 38.33%, achieving a break-even in the fourth year post plant start-up. It's essential to perceive these figures as mere illustrations. Once the actual data is available, it's recommended to consult qualified economic and financial advisors for a thorough analysis.