WESTERN AUSTRALIA, Perth, Sept. 19, 2019 – Strategic Elements...

WESTERN AUSTRALIA, Perth, Sept. 19, 2019 – Strategic Elements Ltd (ASX: SOR) is pleased to announce that its artificial intelligence and robotics company Stealth Technologies has signed a binding Heads of Agreement to apply artificial intelligence to fixed plant operations in mining and deliver a Software as a Service (SaaS) solution.

The Opportunity

1. Using sophisticated analytical techniques to reduce production variability and increase productivity has been successfully used in mining, even though analysis is still largely a manually driven exercise.

2. The parties aim to develop an AI solution that would make the identification and implementation of control room variability reduction opportunities much more cost effective and sustainable, enabling a great amount of value to be unlocked in current mining operations globally.

3. US$680 billion is generated annually by the top 40 mining companies globally. Even a moderate reduction in variability in the fixed plant component of minerals processing by mining companies could have dramatic upside in value delivered through increased reliability, throughput and ultimately revenues realized by the client.

4. The application of artificial intelligence and advanced data analytics is consistent with some of the top trends that mining company companies are pursuing world-wide.

5. The global mine automation market is expected to grow to around US$6.2 billion dollars by 2025, which will lead to an explosion in the amount of data that will be generated for optimisation purposes.

The Agreement

The parties will use all reasonable endeavours to execute a Joint Venture agreement before 10 January 2020 (exclusivity period). The JV terms will substantially be the same as the following:

a. The Parties will complete a proof of concept applying AI to fixed plant operations and deliver a software as a service solution (SaaS)

b. The JV interests are to be 60% Stealth Technologies and 40% Global io

c. Each party will own their own IPR (background and project) and make it available to the JV

d. Ownership of all artificial intelligence related models created in the Joint Venture will vest in Stealth Technologies on their creation.

e. If a party withdraws from the Joint Venture, the remaining party has the right to continue and may at their sole discretion allow new parties to enter the Joint Venture.

f. The Parties will appoint one person each to jointly manage the Joint Venture budget, business plan, marketing and operations.

g. The JV will be unincorporated however the Parties may incorporate a Company with Articles of Association and Shareholders Agreement consistent with the Joint Venture agreement.