Battery Mineral Resources Corp. Announces Agreements for US$5,000,000 Copper Concentrate Prepayment, US$20,000,000 Advance Payment Terms Arrangement and Copper Concentrate Marketing Services with Javelin Global Commodities
Battery Mineral Resources Corp. Announces Agreements for US$5,000,000
Copper Concentrate Prepayment, US$20,000,000 Advance Payment Terms
Arrangement and Copper Concentrate Marketing Services with Javelin
Global Commodities
Vancouver, British Columbia – (February 12, 2024) – Battery Mineral Resources Corp.
(TSXV: BMR) (OTCQB: BTRMF) (“Battery” or “BMR” or the “Company”) is pleased
to announce that its Chilean subsidiary, Minera BMR SpA (“Minera”) has entered into
a marketing agreement, master purchase and sale agreement, a copper concentrate
pre-payment and advance payment terms arrangements (collectively, the
“Agreements”) with Javelin Global Commodities (“ Javelin”). It is intended that,
pursuant to the Agreements, Javelin will market the copper concentrate, gold, silver,
and other metals , (“Product”), produced at the Punitaqui Plant located at the
Punitaqui Mining Complex (“ Punitaqui”), provide a US$5,000,000 copper
concentrate pre-payment and offer advance payment terms in respect of shipments
of Product delivered from time to time in an amount of up to US$20,000,000.
Marketing Agreement
Pursuant to the marketing agreement, Minera appoints Javelin as its exclusive
marketing agent for sales of Product to be produced at Punitaqui for a term of 11
years. In consideration for provision of marketing services, Javelin will earn a variable
commission based on Product price receivable by Minera from the sale of Product
facilitated through Javelin’s marketing activities. The marketing agreement is subject
to pre-agreed upon exclusions for certain Product which will not be marketed by
Javelin.
US$5,000,000 Copper Concentrate Prepay
Javelin has agreed, subject to certain terms and conditions, to prepay to Minera
US$5,000,000 in respect of future deliveries of copper concentrate made by Minera
to Javelin. The prepaid amount is repayable by Minera on or before December 31,
2026, through the delivery of copper concentrate or in cash. The outstanding balance
of the prepaid amount will be subject to an advance payment fee chargeable from
the date of the advance until the prepaid amount is reduced to zero, at a rate equal
to the three-month SOFR (subject to SOFR floor of 2.00%) plus 7.00% per annum.
The proceeds of the Prepay are intended to be used to help fund the Punitaqui restart.
In this regard, personnel hiring for the resumption of full operations at Punitaqui
remains on schedule. Final mine maintenance at the San Andres mine including
rehabilitation of ground support, re-activation of compressed air, ventilation, power,
and water in preparation for resumption of full mining operations, commenced in late
November with the aim of full operational commissioning of the plant in Q1 and plant
start-up in Q2 of 2024.
Payment Terms Arrangement of up to US$20,000,000
Javelin will establish an a dvance payment terms arrangement (“ Facility”) in an
aggregate amount of up to US$20,000,000. The Facility will be used for (a) eligible
accounts receivable and inventory on vessel up to the maximum amount of the
Facility, (b) eligible shed inventory at the Minera storage yard, subject to a sub-limit
of US$2,500,000, and (c) eligible bulk inventory at agreed terminals, subject to a
sub-limit of US$5,000,000 ). An upfront discount of 1% of the maximum Facility
amount and an administration discount of US$2,000 per week shall be paid by Minera
to Javelin, which may be offset against the price payable by Javelin for the Product
shipments. In consideration of Javelin making advance payments, Minera shall pay
to Javelin an advance payment discount at a rate equal to three-month SOFR (subject
to SOFR floor of 2.00%) plus 7.00% per annum on the principal amount outstanding
under the Facility from time to time. BMR and Minera are providing a pledge of
certain assets, including over shares in Minera and over rights under certain material
agreements of BMR and Minera as conditions of the Facility and the other
Agreements.
CEO Commentary
Martin Kostuik, Battery’s CEO stated, “The consummation of these Agreements with
Javelin marks a very critical step in terms of placing the Punitaqui Mine into
operational readiness and first concentrate production. We welcome Javelin as a
partner and look forward to leveraging their marketing prowess to maximize the
value that the sale of copper concentrates will bring to BMR shareholders”.
Conditionality and Security
While the Agreements have been entered into, the availability of the copper
concentrate prepay and the ability of Minera to borrow under the working capital
facility are each subject to the satisfaction of certain terms and conditions.
BMR has agreed to guarantee all obligations and liabilities of Minera under the
Agreements. Minera’s obligations under the Agreements will be secured by liens in
favour of Javelin over assets and material agreements of Minera and BMR.
There are no conversion features into securities of the Company that are associated
with the copper concentrate pre -payment or the advance payment terms
arrangements, and no bonus securities are to be paid in connection with the
Agreements.
About Battery Mineral Resources Corp.
Battery Mineral Resources is a battery minerals company providing shareholders
exposure to the global mega -trend of electrification while being focused on growth
through cash-flow, exploration, and acquisitions in favourable mining jurisdictions.
Battery Mineral’s mission is the discovery, acquisition, and development of battery
metals (namely cobalt, lithium, graphite, and copper), in North America, South
America and South Korea and to become a premier and responsible supplier of
battery minerals to the electrification marketplace. BMR is currently pursuing a near-
term resumption of operations of the Punitaqui Mining Complex, a past copper-gold-
silver producer, in the Coquimbo region of Chile. BMR is the largest mineral claim
holder in the historic Gowganda Cobalt-Silver Camp in Ontario, Canada, and
continues to pursue 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. (including ESI’s wholly owned USA operating
subsidiary, Ozzie’s, Inc.), a profitable mainline pipeline and renewable energy
equipment rental and sales company with operations in Alberta, Canada and Arizona,
USA. Battery Mineral Resources is based in Canada and its shares are listed on the
TSX Venture Exchange under the symbol “BMR” and on the OTCQB under the symbol
“BTRMF”. Further information about BMR and its projects can be found on
www.bmrcorp.com.
For more information, please contact:
Martin Kostuik, CEO
Phone: +1 (604) 229 3830
Corporate Communications
IBN (InvestorBrandNetwork)
www.investorbrandnetwork.com/
310.299.1717 Office
Twitter: @BMRcorp_
Facebook: Battery Mineral Resources Corp. | Facebook
LinkedIn: Battery Mineral Resources Corp.: My Company | LinkedIn
Website: www.bmrcorp.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the
policies of the TSXV) accepts responsibility for the adequacy or accuracy of this
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 be
accurate, and actual results and future events could differ materially from those
anticipated in such statements. Forward -looking statements reflect the beliefs,
opinions and projections of the Company on the date the statements are made and
are based upon a number of assumptions and estimates that, while considered
reasonable by the Company, 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 the results, performance or achievements that are or may
be expressed or implied by such forward -looking statements and the parties have
made assumptions and estimates based on or related to many of these factors. Such
factors include, without limitation, risks related to share price and market conditions,
the inherent risks involved in the mining, exploration and development of mineral
properties, the ability of the Company to meet its anticipated development schedule,
the ability of the Company to satisfy the conditions necessary to access the copper
prepay or the working capital facility, 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 otherwise revise
any forward -looking statements contained herein, whether as a result of new
information or future events or otherwise, except as may be required by law. For
further information regarding the risks please refer to the risk factors discussed in
Battery’s most recent Management Discussion and Analysis filed on SEDAR+.