BMR:CC - Battery Mineral Resources Corp. Announces Resumption of Copper Concentrate Production at Punitaqui
(NewsDirect)
Battery MineralResources Corp. ( TSXV: BMR ) ( OTCQB: BTRMF )(“ Battery ” or “ BMR ” or the “ Company ”)is pleased to announce the resumption of mill operations and firstproduction of copper concentrates at its Punitaqui project inChile.
MartinKostuik, Battery’s CEO stated, "The commencement of copperconcentrate production at Punitaqui marks a significant milestone forBMR and in establishing Chile's next copper mine. Havingefficiently applied capital, it has paved the way for near term copperproduction at Punitaqui and positioning the company favorably togenerate meaningful cash flow. With the commencement of copperconcentrates production, a proficient operational team, and apromising outlook for robust copper markets, we aim to enhanceshareholder value further. We eagerly anticipate sharing our progressand results as 2024 progresses."
Operational Highlights 2024
The Company hasinitiated copper concentrate production after the successfulcommissioning of the recently refurbished and upgraded mineralprocessing facility at Punitaqui. Mining activities to establishaccess to the mineralized zones in both Cinabrio and San Andrescontinue to ramp up with stockpiling of fresh mill feed. Cinabrio isthe original mine that supplied feed for the first 10 years of prioroperations, primarily by Glencore plc.
During the ramp up period of the mines, the Company is lookingto boost the revenue stream by processing mill feed from externalsources. Supply to the mill over the coming months will be acombination of fresh material from the Punitaqui mines and feed fromoutside sources including material from private mines in the area, andcopper smelter slags.
Anglo-American Agreement
The source of slags supply is made possible bythe Anglo-American PLC (“ Anglo ”) agreement announced onFebruary 13 th , 2024. Anglo has agreed to purchase all thecopper concentrate to be produced from 240,000 tonnes ofAnglo-supplied copper smelter slags.
Milestones
The timeline from first fresh mine feed through themill to reaching planned capacity is expected to require approximatelynine months, reaching a run rate of ~90,000 tonnes per month. BMRexpects that the Punitaqui full annual copper production rate will bein the range of 19 million to 23 million pounds of copper inconcentrate with an operating margin of $35 million to $50 million atcurrent copper prices.
While theCinabrio and San Andres mines are reaching full production, theCompany will continue processing mill feed from outside sources andadvancing toward its newly discovered Cinabrio Norte zone, to commenceproduction of mill feed from that zone in H2 2025.
As part of the ongoingoperational readiness during 2024, BMR is executing underground infilland extensional drilling at San Andreas and Cinabrio. The drillingprogram is designed to further define areas that could be included innear-term mine sequencing and for grade control purposes. The companylooks forward to reporting the results of this drilling during thecourse of the year.
Closing of Convertible Debenture Offering
BMR is also pleased toannounce that it has closed its US$400,000 (approximately C$549,360)private placement (the “ Private Placement ”) of seniorunsecured convertible debentures (the “ Debentures ”), whichwas previously announced on March 11, 2024.
As previously announced,the Debentures will mature on September 30 th , 2026 (the“ Maturity Date ”) and will bear interest at 10% per annum,compounding annually on September 30 th of each year, not inadvance. Interest accrued from the date of issuance up to andincluding March 30 th , 2025, will be paid by way of issuanceof common shares of the Company. Interest accrued following March30 th , 2025, will be, at the option of the holder, paideither in cash or by way of issuance of common shares of the Company.The issuance of common shares as payment of interest will be at thethen current market price of the Company’s common shares at the datethe interest becomes payable and will be subject to the prioracceptance of the TSX Venture Exchange and applicable securitieslaws.
The holder of aDebenture may, at their option, at any time preceding the MaturityDate, convert all, but not less than all, of the principal amount ofsuch Debenture into common shares of the Company at the conversionprice of US$0.22 per share (approximately C$0.30 per share).
All Debentures issued inthe Private Placement and in connection with the debt consolidationare subject to a four month hold period under applicable Canadiansecurities laws and under the policies of the TSX Venture Exchange.The Debenture issuances are subject to acceptance by the TSX VentureExchange.
MI 61-101Matters
WestonEnergy II LLC, a subscriber for Debentures in the Private Placement,is a “related party” to BMR pursuant to pursuant to Multilateral Instrument 61-101 – Protection of Minority SecurityHolders in Special Transactions (“ MI 61-101 “). Prior togiving effect to the transactions disclosed in this news release,Weston Energy II LLC and its affiliates owned or controlled (directlyor indirectly) 107,578,740 BMR Common Shares on an undiluted basis(representing approximately 59.4% of the outstanding BMR Common Shareson an undiluted basis).
WestonEnergy II LLC’s participation in the Private Placement constitutes a“related party transaction” for the purposes of MI 61-101. Thetransaction is exempt from the formal valuation requirements of MI61-101 as the fair market value of the transaction does not exceed 25%of BMR’s market capitalization and BMR is not listed on a specifiedmarket (pursuant to the exemptions set forth in Section 5.5(a) and5.5(b) of MI 61-101, respectively) and is further exempt from theminority shareholder approval requirements of MI 61-101 by virtue ofSection 5.7(1)(a) and 5.7(1)(b) of MI 61-101 which provides that arelated party transaction is exempt from the minority shareholderapproval requirements if the fair market value of the transaction isnot more than 25% of the issuer’s market capitalization or is notmore than $2,500,000, respectively.
Additional Disclosure Regarding the Fiera CreditAgreement
BMRis also providing additional information in connection with the C$8Mcredit agreement with Fiera Enhanced Private Debt Fund. ESI EnergyServices Inc., a subsidiary of BMR and the borrower under the creditagreement, paid a commitment fee of C$120,000 in connection with thesigning of the credit agreement.
Exchange Rates
All USD amounts for which CAD equivalentamounts are given in this news release were calculated at CAD/USDexchange rate of 1.3734, the exchange rate published by the Bank ofCanada on May 8 th , 2024.
About Battery Mineral Resources Corp.
Battery MineralResources has re-started and is currently ramping up mine and milloperations at the Punitaqui Mining Complex, a historiccopper-gold-silver producer, in the Coquimbo region of Chile. Themission of the Company is to provide shareholders with an opportunityto realize growth in value via generation of positive cashflow atPunitaqui and to use this momentum as a platform to build a mid-tiercopper producing company. BMR strives to be a company providingshareholders accretive 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 (primarily copper and also cobalt,lithium and graphite), in North America, South America and South Koreaand to become a premier and responsible supplier of battery mineralsto the electrification marketplace. BMR is the largest mineral claimholder in the historic Gowganda Cobalt-Silver Camp in Ontario, Canada,and continues to pursue a focused program to build on the+1-million-pound high-grade cobalt resource at McAra. In addition,Battery Mineral owns 100% of ESI Energy Services, Inc. (includingESI’s wholly owned USA operating subsidiary, Ozzie’s, Inc.), aprofitable mainline pipeline and renewable energy equipment rental andsales company with operations in Alberta, Canada and Arizona, USA.Battery Mineral Resources is based in Canada and its shares are listedon the Toronto Venture Exchange under the symbol “BMR” and on theOTCQB under the symbol “BTRMF”. Further information about BMR andits projects can be found on 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 securities laws.There can be no assurance that such statements will prove to beaccurate, and actual results and future events could differ materiallyfrom those anticipated in such statements. Forward-looking statementsreflect the beliefs, opinions and projections of the Company on thedate the statements are made and are based upon a number ofassumptions and estimates that, while considered reasonable by theCompany, are inherently subject to significant business, economic,competitive, political and social uncertainties and contingencies.Many factors, both known and unknown, could cause actual results,performance, or achievements to be materially different from theresults, performance or achievements that are or may be expressed orimplied by such forward-looking statements and the parties have madeassumptions and estimates based on or related to many of thesefactors. Such factors include, without limitation, risks related toshare price and market conditions, the inherent risks involved in themining, exploration and development of mineral properties, the abilityof the Company to meet its anticipated development schedule,government regulation and fluctuating metal prices. Accordingly,readers should not place undue reliance on forward-looking statements.Battery undertakes no obligation to update publicly or otherwiserevise any forward-looking statements contained herein, whether as aresult of new information or future events or otherwise, except as maybe required by law. For further information regarding the risks pleaserefer to the risk factors discussed in Battery’s most recentManagement Discussion and Analysis filed on SEDAR+.
ContactDetails
Martin Kostuik, CEO
+1 604-229-3830
IBN(InvestorBrandNetwork)
Corporate Communications
+1310-299-1717
editor@investorbrandnetwork.com
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