BMR - Battery Mineral Resources Corp. Announces US$2000000 Debt Financing Closing of Previously Announced Interest Settlement Transactions & Corporate Update
(NewsDirect)
Battery MineralResources Corp. ( TSXV: BMR ) ( OTCQB: BTRMF )(“ Battery ” or “ BMR ” or the “ Company ”)is pleased to announce that it has entered into a debt financingarrangement with Weston Energy LLC (the “ Lender ”) foraggregate gross proceeds of US$2,000,000. In connection with thefinancing, BMR issued a promissory note to the Lender, which matureson September 15, 2023, and bears interest at a rate of 8% per annum,with interest payable at the maturity of the note. The proceeds of thefinancing will be used for general working capital.
Martin Kostuik,Battery’s CEO and Director stated “we are delighted to havesuch strong support from our major shareholder provided by thisshort-term debt financing. This funding will allow BMR to continueadvancing the Punitaqui copper mining complex towards a profitable andsustainable restart and most importantly, gives us more flexibility aswe seek the final non-dilutive funding required to restart Punitaqui,expected in the next one to two months.
The Lender or itsaffiliates have control or direction over securities of the Companycarrying more than 10% of the voting rights attached to theCompany’s outstanding voting securities. Accordingly, the Loan isconsidered a “related party transaction” as defined underMultilateral Instrument 61-101 Protection of Minority SecurityHolders in Special Transactions (“ MI 61-101 ”). TheCompany as its securities are listed for trading on the TSXV. TheCompany has relied on the exemptions from the formal valuation andminority shareholder approval requirements of MI 61-101 contained insections 5.5(a), 5.5(b), 5.7(a) and 5.7(f).
In addition, BMR ispleased to announce that the interest settlement agreements withcertain creditors of the Company previously announced on April 14,2023, have been approved by the TSX Venture Exchange (the“ TSXV ”). Pursuant to these agreements, the Company hasagreed to issue an aggregate of 5,217,186 common shares(“ Shares ”) in the capital of the Company to settle$830,037.80 of accrued interest owed to certain holders of BMR’sconvertible debentures (collectively, the “ Interest SettlementTransactions ”) as follows:
• 294,298 Shares at a deemedprice of C$0.19 per share.
• 1,138,044 Shares at adeemed price of C$0.18 per share.
• 1,575,758 Shares at adeemed price of C$0.165 per share.
• 2,209,086 Shares at adeemed price of C$0.14 per share.
The share price used to determine the number ofshares issued to the holder of each tranche of the convertibledebentures, was the closing share price of the Company's commonshares on the TSX Venture Exchange on the one-year anniversary of theissuance of each convertible debenture tranche. All securities issuedpursuant to the Interest Settlement Transactions will be subject to ahold period of four months and one day from the date of issuance, inaccordance with applicable securities legislation.
Other CorporateMatters
As thecompany works towards securing the final non-dilutive funding for therestart of the Punitaqui copper mining complex, it is also working toadvance its ongoing permitting process as well as strengthen itsrelationships with its local communities and other stakeholders. Thefollowing is an account of the permitting process as well an update onenvironmental and community initiatives.
Environmental and Community Initiatives
Battery currently has asigned agreement in place that grants The Company surface rights forexploration of “blue sky” areas on its concessions with theCommunity of Potrerillos. BMR Geologists have now identified the“blue sky” areas, with the next step being to formalize easementagreements with the Potrerillos Community, which is expected in thecoming months. ? Additionally, BMR is pleased to report that TheCompany's third-party community relations consultant IntegratioMediação Social e Sustentabilidade (“Integratio”) has completedthe essential community relationship policies and manuals that willsupport and guide the BMR’s social strategy.
The Chilean Ministry ofPublic Workings ("MOP") is currently enhancing part of theroad that connects the Punitaqui Plant to the Dalmacia deposit. BMRhas reached an agreement to contribute to widening the road andincreasing the asphalt to support trucks hauling ore from Dalmacia tothe Plant.? Conversations with members of the Community of Punitaquito establish the easement agreements for the Dalmacia-Plant Road arein already in progress. BMR looks forward to updating the progress onthese agreements in the coming months.
The Company is proud to report that its now amember of the regional association of mining companies, the ConsejoReginal Minero Región de Coquimbo ("CORMINCO") and looksforward to continuing working with the association. In the past threemonths Battery has participated in several meetings organized byCORMINCO with regional authorities, including one of the senators ofthe region and the presidential delegate of the Limari Province. Thesemeetings have been useful to introduce BMR to government entities andgain valuable support for our ongoing permitting process.?Additionally, BMR is very proud to announce that its SONAMIaffiliation (the So ciedad Na cional de Mi neria)has been completed. SONAMI is the trade union institution that groupsand represents the mining activity of large, medium, and small scale,metallic and non-metallic mining companies in Chile. It was founded in1883 and since its creation, it has contributed to the development ofpublic and private mining and the improvement of mining institutionsand legislation, as well as to the professionalization of workers inthe sector. It currently brings together 76 medium and large miningcompanies and supplier companies, as well as 38 regional miningassociations, representing more than two thousand small miningentrepreneurs. BMR's Initial meetings with SONAMI have alreadytaken place to obtain their support and participate in theirspecialized committees and The Company intends to continue to supportand strengthen this important association by any possible means.
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 TorontoVenture 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 .
Neither the TSXVnor its Regulation Services Provider (as that term is defined in thepolicies of the TSXV) accepts responsibility for the adequacy oraccuracy of this press release.
Forward Looking Statements
This news release includes certain “forward-lookingstatements” under applicable Canadian securities legislation. Therecan be no assurance that such statements will prove to be accurate,and actual results and future events could differ materially fromthose 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, the ability of theCompany to obtain sufficient financing to complete exploration anddevelopment activities, 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 by law.
Contact Details
Martin Kostuik, CEO
+1604-229-3830
CorporateCommunications / IBN (InvestorBrandNetwork)
+1310-299-1717
editor@investorbrandnetwork.com
CompanyWebsite
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