Battery Mineral Resources Corp. Announces Related Party Loan to Continue Advancing Punitaqui
Battery Mineral Resources Corp. Announces Related Party Loan to Continue
Advancing Punitaqui
Vancouver, British Columbia – (October 21, 2022) – Battery Mineral Resources Corp.
(TSXV: BMR) (OTCQB: BTRMF) (“Battery” or “BMR” or the “Company”) announces
that it has entered into a loan agreement (the “ Loan Agreement”) dated October
20, 2022 (the “Closing Date”) to borrow up to USD$4,000,000 (the “ Loan”) from
Weston Energy LLC. The Loan proceeds will be received by BMR in one or more
advances (each, an “Advance”). The Loan will mature on the date that is 120 days
after the Closing Date (the “Maturity Date”).
Battery’s CEO and Director, Martin Kostuik states, “As we work diligently to finalize
our longer-term funding agreement, we are pleased that Yorktown Partners, through
Weston Energy, is providing us with a bridge Loan on very favorable terms. This
support from our largest shareholder affords us the flexibil ity to ensure we receive
the best-possible terms for the final piece of project financing needed to restart our
Punitaqui copper mine. The loan has a very satisfactory interest rate, contains no
dilutive securities such as share purchase warrants, and will be secured by a portion
of the heavy equipment of our wholly-owned operating subsidiary, namely Ozzie’s,
Inc. (ESI Energy Services). On the heels of the recently announced 6.2 million
indicated (and 3.1 million inferred) tonnes of copper resources, we look forward to
completing the project financing and shifting our focus to the Punitaqui mine restart
and the ramp up to full production in the coming months.”
The outstanding principal balance of each Advance shall bear interest from the dat e
of such Advance at the rate of (i) six percent (6%) per annum for the first ninety
(90) days following the Closing Date and (ii) eight percent (8%) per annum at all
times thereafter until the earlier of (i) the Maturity Date and (ii) the repayment in full
of all amounts payable under the Loan Agreement. The Company may prepay all or
any part of the outstanding principal amount of the Loan at any time without notice
or penalty provided that such prepayment is accompanied by all accrued and unpaid
interest on the principal amount prepaid.
The Company intends to use the proceeds of the Loan to continue advancing the
Punitaqui copper mine towards initial production, and for additional working capital.
The Lender has control or direction over securities of the Company carrying more
than 10% of the voting rights attached to all of the Company’s outstanding voting
securities. Accordingly, the Loan is considered a related party transaction under the
policies of the TSX Venture Exchange (the “TSXV”).
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The Company is exempt from the formal valuation requirement under Multilateral
Instrument 61-101 Protection of Minority Security Holders in Special Transactions
(“MI 61-101”) as its securities are listed for trading on the TSXV. The Company is
also exempt from the minority approval requirement under MI 61 -101 as the Loan
has been provided on reasonable commercial terms that are not less advantageous
to the Company than if it were obtained from an arm’s length par ty. Further, the
Loan is not convertible into or repayable in securities of the Company.
About Battery Mineral Resources Corp.
Battery Mineral Resources (“BMR”) is a battery mineral s 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, an d copper), in North America,
South America and South Korea, to become a premier and responsible supplier of
battery minerals to the electrification marketplace. BMR is currently pursuing a
potential near-term resumption of operations in late 2022 of the Punitaqui Mining
Complex, a past copper-gold 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. a profitable mainline pipeline
and renewable energy equipment rental and sales company with operations in
Alberta, Canada and Arizona, USA. Battery Minerals Resources is based in Canada
and its shares are listed on the Toronto 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
Mars Investor Relations
+1 (604) 335-1976
Harbor Access Corp.
475-477-9402
Twitter: @BMRcorp_
www.bmrcorp.com
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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” unde r 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
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, the ability of the Company to obtain sufficient
financing to complete exploration and development activities, the ability of the
Company to secure the Advances under the Loan Agreement, timing of the
completion of the Company’s audit, 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, 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.