Strategy

Mining companies focused on underexplored mines

Significant Appreciation Potential from Exploration

• Most of Bolivia’s mineral deposits have been unexplored since the nationalization of the largest mines in the 1950s and have been exploited by coops with low productivity per worker

• Most multinationals have executed small exploration budgets in the past 20 years.

• The state-owned mining corporation—Comibol, has focused on smelting and metallurgy facilities and cannot conduct large exploration projects.

• MTT’s team has identified the value catalyst is the negotiation with all parties and expectations management with coops and indigenous communities.

Mining projects for reprocessing of old tailings

Attractive Cash Flows from Reprocessing of Rich Tailings

• In addition to primary mining investments, MTT also seeks investments in developing projects to reprocess old tailings.

• Since most old tailings in Bolivia are the product of pre-1953 operations, these have relevant grades and tonnage.

• There is an increasing sense of urgency and need-to-do-something in the central government and towns surrounding these tailings.

• For those tailings which property rights are shared between the Comibol and cooperatives, the key to success is to negotiate with (1) the Comibol the exploration and mining rights contingent to a capital commitment, and with (2) the local cooperatives, which don’t have the required capital and know-how for the reprocessing technology, attractive terms.

Equity in mining companies that own concessions or JV agreements with Concessionaires

• MTT mainly invests in equity, and generally looks for control positions, either alone or with strategic co-investors.

• MTT’s partners maximize their leverage to MTT’s strengths, specifically its:

  • Team of professionals

  • Long-term, fundamentals-based approach

  • Extensive network and negotiation capabilities with both sophisticated and informal (co-ops) parties.

• MTT fully aligns interests with management teams and stakeholders.

Joint Venture And Off-take Agreements With Co-ops For Exploration And Toll Mining Services

• MTT has identified several cooperatives and mining companies that don’t have metallurgy know-how and are willing to partner by sharing exploration and production returns.

• Such structures are attractive to cooperatives with little capital where conventional equity or debt markets are difficult to access.

• MTT can be flexible and innovative with the terms of its debt investments, allowing growth projects to be developed and optimizations to be implemented, even when economic conditions are unfavorable.

Joint Venture Agreements With State- Owned Mining Corporation—Comibol

• In addition to strategic equity, debt, and off- take agreements, MTT is also building a portfolio of tailings that need urgent reprocessing to alleviate environmental concerns.

• This portfolio comprises a few of the largest historical tailings in gold, silver, tin and zinc.

• The portfolio allows MTT to diversify its exploration assets and in Bolivia.