Battery Mineral Resources Corp. Announces Closing of Oversubscribed Flow-Through Private Placement
BATTERY MINERAL RESOURCES CORP. ANNOUNCES CLOSING OF
OVERSUBSCRIBED FLOW-THROUGH PRIVATE PLACEMENT
VANCOUVER, British Columbia, September 29, 2021 - Battery Mineral Resources
Corp. (“Battery” or the “Company”) (TSX.V:BMR) is very pleased to announce that
it has c ompleted the second and final tranche of its oversubscribed, non-brokered
private placement (the “Placement”) announced on August 23, 2021.
In the second and final tranche of its placement , the Company issued 961,539
common shares in the capital of the Company on a flow -through basis (each, a
“Flow-Through Share”) at a price of $0.78 per Flow-Through Share to raise gross
proceeds of $750,000. The private placement was originally announced for the
amount of $800,000. However, due to increased investor demand, the total raised
increased from $800,000 to $1,306,800, in aggregate. These funds will be used to
finance the continuation of the Company’s 2021 Canadian exploration programs in
Ontario.
In connection with the second tranche of the Placement, the Company will pay a
finder’s fee to GloRes Securities Inc. consisting of a cash commission of $45,000,
being 6% of the proceeds GloRes raised for the Company.
CEO Martin Kostuik commented , "We are especially pleased to close this round of
financing that was not only oversubscribed but also at a price higher than the
current market. We are grateful that these investors value the underlying potential
that BMR has in delivering direct exposure to the ever-increasing upside and future
of electric vehicles via the battery related materials in our asset base - commodities
that we look forward developing on the back of the potentially near-term cash flowing
Punitaqui Mine".
The gross proceeds from the Placement will be used for “Canadian exploration
expenses”, and will qualify as “flow-through mining expenditures” as those terms are
defined in the Income Tax Act (Canada), which will be renounced to the initial
purchasers of the Flow-Through Shares with an effective date no later than December
31, 2021 in an aggregate amount not less than the gross proceeds raised from the
issue of the Flow-Through Shares. The Flow -Through Shares are subject to a
statutory hold period expiring four months and one day from the closing date of the
second tranche of the Placement.
The continuation of the 2021 -2022 exploration and drill program that will focus on
the Elk Lake, Wilder, Gowganda and McAra projects in Ontario.
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At McAra, the main focus will be an update of the May 26, 2020 NI 43-101 technical
report outlining the McAra resource estimate as well as a re -assessment of the
potential for economic extraction.
The update of the 2020 technical report for McAra, will focus on updating the report
with more recent market pricing for cobalt, a potential inclusion of new drilling results
and a re-assessment of the prospects for economic extraction.
A 300 -kilogram sample of McAra cobalt mineralization will be collected for
metallurgical ore-sorting test work. The results of the test work will determine the
viability of the McAra cobalt mineralization which averages 1.47% cobalt to be
mechanically upgraded in grade using new, automated ore -sorting techniques.
Upgrading the extracted mineralized ma terial may allow for direct shipment to a
cobalt refinery.
At Gowganda East, the exploration drill holes will target the upper contact of the
diabase along the eastern limb of the Nipissing Diabase Sill. Historically this contact
was the principal ore host in the Gowganda Mining Camp which produced 60.1 million
ounces silver and 1.3 million pounds of cobalt from 1910 to 1989. In addition, target
identification using geophysics has proven valuable. Three Dimensional Induced -
Polarization (“3D -IP”) surveys at Gowganda East have identified several targets
comprising high chargeability anomalies which could be indicative of sulphide
mineralization as well as a number of chargeability lows which have been interpreted
as potential alteration zones.
The Fall field work program consisting of prospecting, geological mapping, and rock
sampling, targeting known mineral cobalt –silver occurrences and historic wo rkings,
is aimed to identify new high priority targets for drilling, trenching and ground
geophysical surveys. This ground truthing will target historic workings south of the
town of Elk Lake as well as the Sydney Creek showing in the Gowganda Project area
as a potential drill target. Initial prospecting and sampling on the newly staked Wilder
Project West claims in the vicinity of the historic Rusty Lake mine will be field
assessed.
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Figure 1: BMR’s land position in the Cobalt Embayment
Other Corporate Maters
The Company also wishes to announce that it has retained the services of
Independent Trading Group (“ITG”) for market -making of its shares (TSX.V:BMR).
ITG is an independent, privately held broker -dealer based in Toronto, Ontario, that
provides a wide range of financial and investment services, and is registered with the
Canadian Securities Exchange, NEO, Toronto Stock Exchange, and TSXV along with
the Investment Industry Regulatory Organization of Canada (IIROC). ITG is an
unrelated and unaffiliated group to BMR and has no interest, directly or indirectly in
BMR or the securities of BMR or any right or intent to acquire such an interest. The
Company has retained ITG for a 12-month term and, in consideration of the services
provided by ITG, the Comp any will pay ITG a monthly cash fee of $7,000. The
contract with ITG was executed April 12th, 2021.
Additional Information
P. J. Doyle, FAusIMM (#208850), Battery Mineral Resources Corp. - Vice President
Exploration, supervised the preparation of and approved the scientific and technical
information in this press release pertaining to the Canada Exploration Program.
Scientific and technical inf ormation pertaining to the cobalt resource at McAra was
extracted from the Company’s NI 43 -101 “Technical report on Cobalt Exploration
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Assets in Canada” dated as of May 26, 2020 with an effective date of March 31, 2020,
prepared by Glen Cole (P. Geo) of SRK Consulting (Canada) Inc.
About Battery Mineral Resources Corp.
A battery mineral company with high-quality assets providing shareholders exposure
to the global mega-trend of electrification and focused on growth through cash-flow,
exploration, and acquisitions in the world’s top mining jurisdictions. BMR is currently
developing the Punitaqui Mining Complex and pursuing the potential near term
resumption of operations at the prior producing Punitaqui copper -gold mine. The
Punitaqui copper-gold mine most recently produced approximately 21,000 tonnes of
copper concentrate in 2019 and is located in the Coquimbo region of Chile . BMR is
engaged in the discovery, acquisition , and development of battery metals (cobalt,
lithium, graphite, nickel & copper), in North and South America and South Korea with
the intention of becoming a premier and sustainable supplier of battery minerals to
the electrification marketplace. Battery Mineral Resources is the largest mineral claim
holder in the historic Gowganda Cobalt-Silver Camp, Canada and continues to pursue
a focused program to build on the recently announced, +1-million-pound high-grade
cobalt resource at McAra by testing over 50 high-grade primary cobalt silver-nickel-
copper targets. In addition , Battery owns 100% of ESI Energy Services, Inc., also
known as Ozzie’s, a pipeline equipment rental and sales company with operations in
Leduc, Alberta and Phoenix, Arizona.
For further information, please contact:
Battery Mineral Resources Corp.
Martin Kostuik
Phone: +1 (604) 229 3830
Email: [email protected]
The securities offered pursuant to the Private Placement have not been, and will not be, registered under
the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and
may not be offered or sold in the United States or to, or for the account or benefit of, United States persons
absent registration or any applicable exemption from the registration requirements of the U.S. Securities
Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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
Canadian securities legislation. 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
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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 limi tation, the ability of the Company to obtain sufficient
financing to complete exploration and development activities, risks related to share
price and market conditions, the inherent risks involved in the mining, exploration
and development of mineral properties, 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.