BMR - Battery Mineral Resources Corp. Provides Punitaqui Update and Extends Closing Date on its Announced Offering of up to US$6M in Unsecured Convertible Debentures
(NewsDirect)
Battery MineralResources Corp. ( TSXV: BMR ) ( OTCQB: BTRMF )(“ Battery ” or “ BMR ” or the “ Company ”)is pleased to provide project updates and also announce an extensionto the final closing date of its private placement (the “ PrivatePlacement ”) of up to US$6,000,000 in senior unsecuredconvertible debentures (the “ Debentures ”), which waspreviously announced on October 17, 2023.
Operational Readiness
The Company is pleasedto announce that effective January 26, 2024, it has received anexploitation permit from Chile's National Geology and MiningService (SERNAGEOMIN) with regards to the Cinabrio mine, which formspart of the Punitaqui mining complex. The Cinabrio mine is theoriginal mine which supported copper concentrate production during theapproximately 10 years of historic copper production, primarilyoperated by Glencore PLC.
The exploitation permit allows BMR to extractcopper ore and barren rock from the Cinabrio mine as the mine is beingprepared for resumption of full production. The Company anticipatescommencing pre-production maintenance activities at Cinabrio in thevery near-term, including rehabilitation of existing workings,drifting and establishment of access for drilling and exploitation –all of which allows for the resumption of ore extraction.
As previously announced,an exploitation permit for the San Andres mine has been granted. Thepermit allows for BMR to commence drifting, ramp construction and minedevelopment on two different elevation levels and allows forestablishment of new underground exploration drilling platforms. Thismine development will establish access to new zones of coppermineralization for the forthcoming mine production. Mining equipmentand supplies to support these activities has been delivered andpersonnel recruitment is progressing well.
Repairs, replacements and upgrades of thecrushing, grinding and flotation plant are progressing well, andoperational commissioning of the facility is expected to begin in thelatter part of Q1, 2024, followed by copper concentrate production inQ2, 2024.
PrivatePlacement
TheTSX Venture Exchange (the “ TSXV ”) has approved an extensionto the Private Placement to February 14, 2024. The proceeds from theDebentures will be applied towards working capital and the restart ofcopper concentrate production at the Company’s Punitaqui miningcomplex in Chile (the “ Restart ”).
The Company continues toprogress towards securing the balance of the capital required for theRestart and, to date, has successfully raised US$3,285,000(C$4,407,484) in Debentures. The Company estimates the total capitalrequired for the Restart to be approximately US$13 million(approximately C$17.4 million) (prior to corporate costs and otherasset holding costs and inclusive of amounts to be raised in thePrivate Placement). The Company looks forward to providing additionalupdates to the market in the coming weeks as Punitaqui is propelledback into sustainable, profitable production for allstakeholders.
Offering Terms (as previously disclosed)
The Debentures willmature on September 30, 2026 (the “ Maturity Date ”) and willbear interest at 10% per annum, compounding annually on September 30of each year, not in advance. Interest accrued from the date ofissuance up to and including March 30, 2025, will be paid by way ofissuance of common shares of the Company. Interest accrued followingMarch 30, 2025, will be, at the option of the holder, paid either incash or by way of issuance of common shares of the Company. Theissuance of common shares as payment of interest will be at the thencurrent market price of the Company’s common shares at the date theinterest becomes payable and will be subject to the prior acceptanceof the TSXV and applicable securities laws.
The holder of aDebenture may, at their option, at any time from March 31, 2024, andprior to the close of business on the business day immediatelypreceding the Maturity Date, convert all, but not less than all, ofthe principal amount of such Debenture into common shares of theCompany at the conversion price of US$0.22 per share (approximatelyC$0.30 per share).
All Debentures issued in the Private Placement are subject to afour month hold period under applicable Canadian securities laws andunder the policies of the TSXV. The Private Placement is subject tofinal approval by the TSXV.
Exchange Rates
All USD amounts for which CAD equivalentamounts are given in this news release were calculated at CAD/USDexchange rate of 1.3417, the exchange rate published by the Bank ofCanada on January 30, 2024.
MI 61-101 Matters
Weston Energy LLC andWeston Energy II LLC are “related parties” to BMR pursuant topursuant to Multilateral Instrument 61-101 – Protection of MinoritySecurity Holders in Special Transactions (“ MI 61-101 “).Prior to giving effect to the transactions disclosed in this newsrelease and in the refinancing transactions disclosed in theCompany’s press release dated October 17, 2023, Weston Energy LLCand Weston Energy II LLC and its affiliates owned or controlled(directly or indirectly) 107,578,740 BMR Common Shares on an undilutedbasis and 122,491,305 BMR Common Shares assuming the conversion of allthe Company’s previously outstanding secured convertible debentures(representing approximately 60.60% and 63.31%, respectively, of theoutstanding BMR Common Shares).
Disclaimers
The Debentures (including any issued in futureclosings) will be sold in a transaction exempt from registration underthe Securities Act of 1933, as amended (the “ SecuritiesAct ”) and will be sold only to persons reasonably believed to beaccredited investors in the United States under Rule 506 under theSecurities Act and outside the United States only to non-U.S. personsin accordance with Regulation S under the Securities Act.
The Debentures and theshares of common stock issuable upon conversion of the Debentures, ifany, have not been and will not be registered under the SecuritiesAct, or any state securities laws, and unless so registered, may notbe offered or sold in the United States except pursuant to anapplicable exemption from such registration requirements of theSecurities Act and applicable state securities laws.
This press release doesnot constitute an offer to sell or a solicitation of an offer to buyany of the Debentures or any shares of common stock potentiallyissuable upon conversion of the Debentures nor shall there be any saleof Debentures (or shares issuable upon conversion thereof) in anystate or other jurisdiction in which such offer, solicitation or salewould be unlawful prior to registration or qualification under thesecurities laws of such state.
There can be no assurance that any future offeringsof Debentures will be completed.
About Battery Mineral Resources Corp.
Battery MineralResources is a battery minerals company providing shareholdersexposure to the global mega-trend of electrification while beingfocused on growth through cash-flow, exploration, and acquisitions infavourable mining jurisdictions. Battery Mineral’s mission is thediscovery, acquisition, and development of battery metals (namelycobalt, lithium, graphite, and copper), in North America, SouthAmerica and South Korea and to become a premier and responsiblesupplier of battery minerals to the electrification marketplace. BMRis currently pursuing a near-term resumption of operations of thePunitaqui Mining Complex, a past copper-gold-silver producer, in theCoquimbo region of Chile. BMR is the largest mineral claim holder inthe historic Gowganda Cobalt-Silver Camp in Ontario, Canada, andcontinues to pursue a focused program to build on the recentlyannounced, +1-million-pound high-grade cobalt resource at McAra. Inaddition, Battery Mineral owns 100% of ESI Energy Services, Inc.(including ESI’s wholly owned USA operating subsidiary, Ozzie’s,Inc.), a profitable mainline pipeline and renewable energy equipmentrental and sales company with operations in Alberta, Canada andArizona, USA. Battery Mineral Resources is based in Canada and itsshares are listed on the Toronto Venture Exchange under the symbol“BMR” and on the OTCQB under the symbol “BTRMF”. Furtherinformation about BMR and its 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-lookingstatements” under applicable securities laws. There can be noassurance that such statements will prove to be accurate, and actualresults and future events could differ materially from thoseanticipated in such statements. Forward-looking statements reflect thebeliefs, opinions and projections of the Company on the date thestatements are made and are based upon a number of assumptions andestimates that, while considered reasonable by the Company, areinherently subject to significant business, economic, competitive,political and social uncertainties and contingencies. Many factors,both known and unknown, could cause actual results, performance, orachievements to be materially different from the results, performanceor achievements that are or may be expressed or implied by suchforward-looking statements and the parties have made assumptions andestimates based on or related to many of these factors. Such factorsinclude, without limitation, the ability of the Company to obtainsufficient financing (including through the Private Placement) tocomplete exploration and development activities, the ability of theCompany to close further tranches of the Private Placement, thecompletion, timing and size of the proposed Private Placement, theintended use of the proceeds of the Private Placement, risks relatedto share price and market conditions, the inherent risks involved inthe mining, exploration and development of mineral properties, theability of 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
Battery Mineral Resources Corp.
MartinKostuik, CEO
+1 604-229-3830
CorporateCommunications, IBN (InvestorBrandNetwork)
+1310-299-1717
editor@investorbrandnetwork.com
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