BMR - Battery Mineral Resources Corp. Announces Agreements with Javelin Global Commodities
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Battery MineralResources Corp. ( TSXV: BMR ) ( OTCQB: BTRMF )(“ Battery ” or “ BMR ” or the “ Company ”)is pleased to announce that its Chilean subsidiary, Minera BMR SpA(“ Minera ”) has entered into a marketing agreement, masterpurchase and sale agreement, a copper concentrate pre-payment andadvance payment terms arrangements (collectively, the“ Agreements ”) with Javelin Global Commodities(“ Javelin ”). It is intended that, pursuant to theAgreements, Javelin will market the copper concentrate, gold, silver,and other metals, (“ Product ”), produced at the PunitaquiPlant located at the Punitaqui Mining Complex(“ Punitaqui ”), provide a US$5,000,000 copper concentratepre-payment and offer advance payment terms in respect of shipments ofProduct delivered from time to time in an amount of up toUS$20,000,000.
Marketing Agreement
Pursuant to the marketing agreement, Mineraappoints Javelin as its exclusive marketing agent for sales of Productto be produced at Punitaqui for a term of 11 years. In considerationfor provision of marketing services, Javelin will earn a variablecommission based on Product price receivable by Minera from the saleof Product facilitated through Javelin’s marketing activities. Themarketing agreement is subject to pre-agreed upon exclusions forcertain Product which will not be marketed by Javelin.
US$5,000,000 CopperConcentrate Prepay
Javelin has agreed, subject to certain terms and conditions, toprepay to Minera US$5,000,000 in respect of future deliveries ofcopper concentrate made by Minera to Javelin. The prepaid amount isrepayable by Minera on or before December 31, 2026, through thedelivery of copper concentrate or in cash. The outstanding balance ofthe prepaid amount will be subject to an advance payment feechargeable from the date of the advance until the prepaid amount isreduced to zero, at a rate equal to the three-month SOFR (subject toSOFR floor of 2.00%) plus 7.00% per annum. The proceeds of the Prepayare intended to be used to help fund the Punitaqui restart.
In this regard,personnel hiring for the resumption of full operations at Punitaquiremains on schedule. Final mine maintenance at the San Andres mineincluding rehabilitation of ground support, re-activation ofcompressed air, ventilation, power, and water in preparation forresumption of full mining operations, commenced in late November withthe aim of full operational commissioning of the plant in Q1 and plantstart-up in Q2 of 2024.
Payment Terms Arrangement of up to US$20,000,000
Javelin will establishan advance payment terms arrangement (“ Facility ”) in anaggregate amount of up to US$20,000,000. The Facility will be used for(a) eligible accounts receivable and inventory on vessel up to themaximum amount of the Facility, (b) eligible shed inventory at theMinera storage yard, subject to a sub-limit of US$2,500,000, and (c)eligible bulk inventory at agreed terminals, subject to a sub-limit ofUS$5,000,000). An upfront discount of 1% of the maximum Facilityamount and an administration discount of US$2,000 per week shall bepaid by Minera to Javelin, which may be offset against the pricepayable by Javelin for the Product shipments. In consideration ofJavelin making advance payments, Minera shall pay to Javelin anadvance payment discount at a rate equal to three-month SOFR (subjectto SOFR floor of 2.00%) plus 7.00% per annum on the principal amountoutstanding under the Facility from time to time. BMR and Minera areproviding a pledge of certain assets, including over shares in Mineraand over rights under certain material agreements of BMR and Minera asconditions of the Facility and the other Agreements.
CEO Commentary
MartinKostuik, Battery’s CEO stated, “The consummation ofthese Agreements with Javelin marks a very critical step in terms ofplacing the Punitaqui Mine into operational readiness and firstconcentrate production. We welcome Javelin as a partner and lookforward to leveraging their marketing prowess to maximize the valuethat the sale of copper concentrates will bring to BMRshareholders”.
Conditionality and Security
While the Agreements have been entered into,the availability of the copper concentrate prepay and the ability ofMinera to borrow under the working capital facility are each subjectto the satisfaction of certain terms and conditions.
BMR has agreed toguarantee all obligations and liabilities of Minera under theAgreements. Minera’s obligations under the Agreements will besecured by liens in favour of Javelin over assets and materialagreements of Minera and BMR.
There are no conversion features into securitiesof the Company that are associated with the copper concentratepre-payment or the advance payment terms arrangements, and no bonussecurities are to be paid in connection with the Agreements.
About Battery MineralResources Corp.
Battery Mineral Resources is a battery minerals companyproviding shareholders exposure to the global mega-trend ofelectrification while being focused on growth through cash-flow,exploration, and acquisitions in favourable mining jurisdictions.Battery Mineral’s mission is the discovery, acquisition, anddevelopment of battery metals (namely cobalt, lithium, graphite, andcopper), in North America, South America and South Korea and to becomea premier and responsible supplier of battery minerals to theelectrification marketplace. BMR is currently pursuing a near-termresumption of operations of the Punitaqui Mining Complex, a pastcopper-gold-silver producer, in the Coquimbo region of Chile. BMR isthe largest mineral claim holder in the historic GowgandaCobalt-Silver Camp in Ontario, Canada, and continues to pursue afocused program to build on the recently announced, +1-million-poundhigh-grade cobalt resource at McAra. In addition, Battery Mineral owns100% of ESI Energy Services, Inc. (including ESI’s wholly owned USAoperating subsidiary, Ozzie’s, Inc.), a profitable mainline pipelineand renewable energy equipment rental and sales company withoperations in Alberta, Canada and Arizona, USA. Battery MineralResources is based in Canada and its shares are listed on the TSXVenture Exchange under the symbol “BMR” and on the OTCQB under thesymbol “BTRMF”. Further information about BMR and its projects canbe found on www.bmrcorp.com .
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Neither the TSXV norits Regulation Services Provider (as that term is defined in thepolicies of the TSXV) accepts responsibility for the adequacy oraccuracy of this press release.
Forward LookingStatements:
This news release includes certain“forward-looking statements” under applicable Canadian securitieslegislation. There can be no assurance that such statements will proveto be accurate, and actual results and future events could differmaterially from those anticipated in such statements. Forward-lookingstatements reflect the beliefs, opinions and projections of theCompany on the date the statements are made and are based upon anumber of assumptions and estimates that, while considered reasonableby the Company, are inherently subject to significant business,economic, competitive, political and social uncertainties andcontingencies. Many factors, both known and unknown, could causeactual results, performance, or achievements to be materiallydifferent from the results, performance or achievements that are ormay be expressed or implied by such forward-looking statements and theparties have made assumptions and estimates based on or related tomany of these factors. Such factors include, without limitation, theability of the Company to obtain sufficient financing to completeexploration and development activities, the ability of the Company tosecure the Advances under the Loan Agreement, timing of the completionof the Company’s audit, risks related to share price and marketconditions, the inherent risks involved in the mining, exploration anddevelopment of mineral properties, the ability of the Company to meetits anticipated development schedule, government regulation andfluctuating metal prices. Accordingly, readers should not place unduereliance on forward-looking statements. Battery undertakes noobligation to update publicly or otherwise revise any forward-lookingstatements contained herein, whether as a result of new information orfuture events or otherwise, except as may be required bylaw.
Contact Details
Battery Mineral ResourcesCorp.
Martin Kostuik, CEO
+1 604-229-3830
CorporateCommunications
Corporate Communications IBN(InvestorBrandNetwork)
+1 310-299-1717
editor@investorbrandnetwork.com
CompanyWebsite
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