BMR - Battery Mineral Resources Corp. Provides Review of 2023 Accomplishments and Outlook for 2024
(NewsDirect)
Vancouver, BritishColumbia – (March 18, 2024) – Battery Mineral Resources Corp.( TSXV: BMR ) ( OTCQB: BTRMF ) (“ Battery ” or“ BMR ” or the “ Company ”) is pleased to provide areview of the Company’s accomplishments in 2023 as well as anoutlook and updates for 2024. The year 2023 brought significantimprovements in the areas of funding, permitting and operationalreadiness for the Punitaqui mine in Chile.
Funding Highlights 2023 and 2024
BMR accomplished multiple major fundingmilestones in 2023, and applied the proceeds towards working capitaland the restart of copper concentrate production at its Punitaquicopper project in Chile, including:
- Bridge loan - Beginning on June 7, BMRincreased its bridge loan facility from its major shareholder fromUS$4 million to US$5.3 million (“ M ”) while also extendingthe maturity date to September 15, 2023. This additional financialflexibility allowed BMR to continue advancing its Punitaqui projecttowards development without the need for the issuance of equity. BMRused the proceeds of the expanded loan to continue advancing Punitaquitowards restarting sustainable copper concentrate production, and foradditional working capital.
- Promissory note - Procuredfurther non-dilutive funding, when BMR announced on July 5, 2023,having obtained a further debt financing in the form of a promissorynote of US$2M, also from its major shareholder. The US$2M promissorynote provided BMR additional flexibility as it worked to secure thefinal funding for the restart of copper concentrate production fromits Punitaqui Copper Mining Complex.
- Private placement andcapital reorganization - A non-brokered private placement offering ofup to US$6M in unsecured convertible debentures, press released onOctober 17, 2023. In connection with the private placement, BMR issuedUS$15.4 million in convertible debentures to its existing debtholdersto refinance substantially all the Company’s previously outstandingindebtedness.
- First closing - The Company’s press releaseof October 19, 2023 announced a first closing of the private placementof convertible debentures for gross proceeds of US$1.37M.
- Second closing - On November 3, 2023, BMR announced a secondclosing of the private placement of convertible debentures for grossproceeds of US$1.915M which brought the total raised in the first twoclosings to US$3.285M.
In addition, funds drawn fromESI Energy Services, Inc. (“ ESI ”), beginning with the US$2Mequipment refinancing announced on December 29, 2022 and includingsubsequent intermittent cash disbursements from ESI to BMR, totalingapproximately US$2.68M for 2023.
Extending into Q1 of 2024, funding highlights areas follows:
- BMR closed further convertible debenture funding, asannounced on February 16 and March 11, bringing the total raised toUS$4.685M;
- Announced on March 11, the Company’s wholly-ownedsubsidiary, ESI entered into an C$8M credit agreement with FieraEnhanced Private Debt Fund; and
- Also, coincident with theJavelin Global Commodities (“ Javelin ”) copper concentratemarketing agreement announced on February 12, Minera BMR SpA (theCompany’s 100%-owned Chilean subsidiary) received a pre-payment ofUS$5M, and entered into advance payment terms in respect of shipmentsof copper concentrate, gold, silver, and other metals delivered fromtime to time in an amount of up to US$20M.
Permitting andOperational Highlights 2023 and 2024
2023 was a transformational year at ourPunitaqui project in Chile, as the Company announced in December thatthe precursor to restarting Punitaqui had begun. In this regard,personnel hiring for the resumption of full operations at Punitaquicommenced. Final mine maintenance at the San Andres mine includingrehabilitation of ground support, re-activation of compressed air,ventilation, power, and water in preparation for resumption of fullmining operations, commenced in late November with the aim of fulloperational commissioning of the Punitaqui processing plant andstart-up in Q2, 2024.
The restart of pre-operational activities at Punitaqui wasinitiated subsequent to the permit for the San Andres mine beinggranted, which allows for BMR to commence drifting, ramp constructionand mine development 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. A further permitgranting was announced in December 2023 which permits BMR to placethickened copper concentrate tailings into the tailing’s storagefacility of up to 1.5M tonnes - representing approximately 20 monthsof mine and plant operations during the first phase of operations atPunitaqui. Beyond this initial 20-month operating period, the Companyexpects to receive a permit for “dry stack” or filtered tailingsdeposition in late-2024. Filtered tailings deposition has severalbenefits over thickened tailings deposition including lower waterconsumption in plant operations and greater capacity for tailingsstorage over the same physical footprint. Construction andcommissioning of the tailings filter plant will take approximatelynine months and thereafter, filtered tailings are expected to bedeposited. Deposition of filtered tailings will allow for anadditional eight-plus years of tailings storage at our permittedmining rate. This will be accomplished over nearly the same footprintthe current tailings storage facility occupies.
In addition, ashighlighted in the February 13, 2023 press release, BMR executed astrategic agreement with Anglo-American PLC (“ Anglo ”) tosell slag copper concentrates produced at the Punitaqui plant. Anglohas agreed to purchase all the copper concentrate to be produced from240,000 tonnes of Anglo- supplied copper slags.
Extending into Q1 of2024, further permitting achievements were as follows:
- Cinabrio and SanAndres now have all operational permits in place for mine developmentand exploitation;
- Dalmacia initial permit for rehabilitationand drifting development was received; and,
- New mine and millclosure plans have been approved by the regulatoryauthorities.
Extending into Q1 of 2024, further operational achievementswere as follows:
- Development drifting in San Andres began and had successintercepting potential feed for the Punitaqui plant earlier thanexpected;
- Initiation of mine maintenance in Cinabrio, theoriginal mine which provided copper mineralized material to thePunitaqui plant for approximately 10 years;
- Infill coredrilling began in San Andres. This work will fine tune the amount oftons and grade that will be mined in the following weeks in SanAndres; and
- Plant maintenance is well advanced (85%). Theseactivities are focussed on repairs, replacements, andupgrades.
As the Company expects to begin copperconcentrate production in the first half of this year from itsPunitaqui copper mine, activities continue to ramp up. The timelinefrom first fresh ore through the mill, increasing to fullcommissioning and eventual commercial production is expected torequire approximately nine months. The company is aiming to completeall mine and plant rehabilitation prior to plant commissioning.Subsequent to this, progress of underground mine development inCinabrio and San Andres will allow BMR to begin processing its ownore. Reaching the Company’s full permitted run rate of 100,000tonnes per month of ore throughput, BMR expects Punitaqui full yearproduction rate should be in the range of 18 to 20 million pounds ofcopper in concentrate. During the ramp up period while the Cinabrioand San Andres mines are in operation, the company will continueadvancing toward its Cinabrio Norte zone to eventually commence activemining in Q? 2024/2025?
As part of the ongoing operational readiness during 2024, BMRexpects to complete underground infill and extensional drilling at SanAndreas and Cinabrio. The drilling program is designed to furtherdefine areas that could be included in mine sequencing and for gradecontrol purposes. The company looks forward to reporting the resultsof this drilling during the course of the year.
Environmental andCommunity Highlights 2023
In 2023, BMR advanced its environmental andcommunity initiatives including the filing of the Company’sinaugural environmental and social governance report (“ ESGReport ”), announced on June 7, 2023.
Additional highlightsin 2023 included:
- Completing agreements with the local community of AgricolaPotrerillos Alto (“ Potrerillos Community ”) and the town ofAgricola Punitaqui (“ Punitaqui Community ”). Theseagreements allow for surface exploration consisting of a groundmagnetic survey, geological mapping, and sampling to identifypotential new targets on grounds for which the Potrerillos Communityhas surface rights to, and allows BMR to drill the potential targetsat a later date.
- To support, aid and improve the localcommunities, BMR also agreed to fund the construction of a water wellfor the people of Potrerillos.
- BMR’s social and communityrelations consultant, Integratio Mediação Social e Sustentabilidade,completed the community relationship policies and consultation manualsthat will support and guide the Company’s social engagement strategyfor the future.
- The Company is currently proactively engagingwith both of our local communities of Potrerillos and Punitaqui aswell as the local and regional authorities on the status of theproject in terms of social impact and employmentopportunities.
Additionally, BMR reached an agreement tocontribute to the widening of the road and an increase of theasphaltic pavement to support trucking of feed for the Punitaqui plantfrom Dalmacia.
CEO Commentary
Martin Kostuik, Battery’s CEO stated, “BMR’s management and board look forward to continuing themarch towards copper production at Punitaqui. With a motivated andcapable operating team coupled with great assets and an outlook forstrong copper markets, the Company is in a very favorable position toprovide ever greater value for it’s shareholders. As 2024 unfolds,we are excited to continue to share progress and results.”
Additional Disclosure Regarding the Credit Agreement
BMR is also providingadditional information in connection with the C$8M credit agreementwith Fiera Enhanced Private Debt Fund. The loans advanced under thecredit agreement bear interest at a floating prime rate plus 420 basispoints. The loans will mature on the third anniversary of the creditagreement. With respect to the first advance under the creditagreement, the maturity date shall therefore be March 8, 2027. Thesecond advance under the credit agreement has not been made andremains subject to the satisfaction of certain conditions.
About BatteryMineral Resources Corp.
BatteryMineral Resources 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 .
AboutBattery Mineral Resources Corp.
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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