BMR:CC - Battery Mineral Resources Corp. Announces Related Party Loan to Continue Advancing Punitaqui
(NewsDirect)
Battery MineralResources Corp. (TSXV: BMR) (OTCQB: BTRMF) (“ Battery ” or“ BMR ” or the “ Company ”) announces that it hasentered into a loan agreement (the “ Loan Agreement ”) datedOctober 20, 2022 (the “ Closing Date ”) to borrow up toUSD$4,000,000 (the “ Loan ”) from Weston Energy LLC .The Loan proceeds will be received by BMR in one or more advances(each, an “ Advance ”). The Loan will mature on the date thatis 120 days after the Closing Date (the “ Maturity Date ”).
Battery’s CEO and Director, Martin Kostuik states , “As wework diligently to finalize our longer-term funding agreement, we arepleased that Yorktown Partners, through Weston Energy, is providing uswith a bridge Loan on very favorable terms. This support from ourlargest shareholder affords us the flexibility to ensure we receive
thebest-possible terms for the final piece of project financing needed torestart our Punitaqui copper mine. The loan has a very satisfactoryinterest rate, contains no dilutive securities such as share purchasewarrants, and will be secured by a portion of the heavy equipment ofour wholly-owned operating subsidiary, namely Ozzie’s,
Inc. (ESI EnergyServices). On the heels of the recently announced 6.2 millionindicated (and 3.1 million inferred) tonnes of copper resources, welook forward to completing the project financing and shifting ourfocus to the Punitaqui mine restart and the ramp up to full productionin the coming months.”
The outstanding principal balance of each Advanceshall bear interest from the date of such Advance at the rate of (i)six percent (6%) per annum for the first ninety (90) days followingthe Closing Date and (ii) eight percent (8%) per annum at all timesthereafter until the earlier of (i) the Maturity Date and (ii) therepayment in full of all amounts payable under the Loan Agreement. TheCompany may prepay all or any part of the outstanding principal amountof the Loan at any time without notice or penalty provided that suchprepayment is accompanied by all accrued and unpaid interest on theprincipal amount prepaid.
The Company intends to use the proceeds of the Loanto continue advancing the Punitaqui copper mine towards initialproduction, and for additional working capital.
The Lender has controlor direction over securities of the Company carrying more than 10% ofthe voting rights attached to all of the Company’s outstandingvoting securities. Accordingly, the Loan is considered a related partytransaction under the policies of the TSX Venture Exchange (the“ TSXV ”).
The Company is exempt from the formal valuation requirementunder Multilateral Instrument 61-101 Protection of Minority SecurityHolders in Special Transactions (“ MI 61-101 ”) as itssecurities are listed for trading on the TSXV. The Company is alsoexempt from the minority approval requirement under MI 61-101 as theLoan has been provided on reasonable commercial terms that are notless advantageous to the Company than if it were obtained from anarm’s length party. Further, the Loan is not convertible into orrepayable in securities of the Company.
About Battery Mineral Resources Corp.
Battery Mineral Resources (“BMR”) is a battery mineralscompany providing 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, to become apremier and responsible supplier of battery minerals to theelectrification marketplace. BMR is currently pursuing a potentialnear-term resumption of operations in late 2022 of the PunitaquiMining Complex, a past copper-gold producer, in the Coquimbo region ofChile. BMR is the largest mineral claim holder in the historicGowganda Cobalt-Silver Camp in Ontario, Canada, and continues topursue a focused program to build on the recently announced,+1-million-pound high-grade cobalt resource at McAra. In addition,Battery Mineral owns 100% of ESI Energy Services, Inc. a profitablemainline pipeline and renewable energy equipment rental and salescompany with operations in Alberta, Canada and Arizona, USA. BatteryMinerals Resources is based in Canada and its shares are listed on theToronto Venture Exchange under the symbol “BMR” and on the OTCQBunder the symbol “BTRMF”. Further information about BMR and itsprojects can be found on www.bmrcorp.com .
For more information, please contact:
Martin Kostuik, CEO
Phone: +1 (604)229 3830
info@bmrcorp.com
Mars Investor Relations
+1 (604) 335-1976
bmr@marsinvestorrelations.com
Harbor Access Corp.
475-477-9402
j ody.kane@harbor-access.com
Twitter: @BMRcorp_
www.bmrcorp.com
Neither the TSXV nor itsRegulation Services Provider (as that term is defined in the policiesof the TSXV) accepts responsibility for the adequacy or accuracy ofthis press release.
Forward Looking Statements
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 andsocial uncertainties and contingencies. Many factors, both known andunknown, could cause actual results, performance, or achievements tobe materially different from the results, performance or achievementsthat are or may be expressed or implied by such forward-lookingstatements and the parties have made assumptions and estimates basedon or related to many of these factors. Such factors include, withoutlimitation, the ability of the Company to obtain sufficient financingto complete exploration and development activities, the ability of theCompany to secure the Advances under the Loan Agreement, timing of thecompletion of the Company’s audit, risks related to share price andmarket conditions, the inherent risks involved in the mining,exploration and development of mineral properties, the ability of theCompany to meet its anticipated development schedule, governmentregulation and fluctuating metal prices. Accordingly, readers shouldnot place undue reliance on forward-looking statements. Batteryundertakes no obligation to update publicly or otherwise revise anyforward-looking statements contained herein, whether as a result ofnew information or future events or otherwise, except as may berequired by law.
Contact Details
BatteryMineral Resources Corp.
Martin Kostuik, CEO
+1604-229-3830
CompanyWebsite
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