Battery Mineral Resources Corp. Announces Resumption of Copper Concentrate Production at Punitaqui
Battery Mineral Resources Corp. Announces Resumption of Copper
Concentrate Production at Punitaqui
Vancouver, British Columbia – (May 13, 2024) – Battery Mineral Resources Corp.
(TSXV: BMR) (OTCQB: BTRMF) (“Battery” or “BMR” or the “Company”) is pleased
to announce the resumption of mill operations and first production of copper
concentrates at its Punitaqui project in Chile.
Martin Kostuik, Battery’s CEO stated, "The commencement of copper concentrate
production at Punitaqui marks a significant milestone for BMR and in establishing
Chile's next copper mine. Having efficiently applied capital, it has paved the way for
near term copper production at Punitaqui and positioning the company favorably to
generate meaningful cash flow. With the commencement of copper concentrates
production, a proficient operational team, and a promising outlook for robust copper
markets, we aim to enhance shareholder value further. We eagerly anticipate sharing
our progress and results as 2024 progresses."
Operational Highlights 2024
The Company has initiated copper concentrate production after the successful
commissioning of the recently refurbished and upgraded mineral processing facility
at Punitaqui. Mining activities to establish access to the mineralized zones in both
Cinabrio and San Andres continue to ramp up with stockpiling of fresh mill feed .
Cinabrio is the original mine that supplied feed for the first 10 years of prior
operations, primarily by Glencore plc.
During the ramp up period of the mines, the Company is looking to boost the revenue
stream by processing mill feed from external sources. Supply to the mill over the
coming months will be a combination of fresh material from the Punitaqui mines and
feed from outside sources including material from private mines in the area , and
copper smelter slags.
Anglo-American Agreement
The source of slags supply is m ade possible by the Anglo-American PLC (“Anglo”)
agreement announced on February 13th, 2024. Anglo has agreed to purchase all the
copper concentrate to be produced from 240,000 tonnes of Anglo -supplied copper
smelter slags.
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Milestones
The timeline from first fresh mine feed through the mill to reaching planned
capacity is expected to require approximately nine months, reaching a run rate of
~90,000 tonnes per month. BMR expects that the Punitaqui full annual copper
production rate will be in the range of 19 million to 23 million pounds of copper in
concentrate with an operating margin of $35 million to $50 million at current
copper prices.
While the Cinabrio and San Andres mines are reaching full production, the Company
will continue processing mill feed from outside sources and advancing toward its
newly discovered Cinabrio Norte zone, to commence production of mill feed from that
zone in H2 2025.
As part of the ongoing operational readiness during 2024, BMR is executing
underground infill and extensional drilling at San Andreas and Cinabrio. The drilling
program is designed to further define areas that could be included in near-term mine
sequencing and for grade control purposes. The company looks forward to reporting
the results of this drilling during the course of the year.
Closing of Convertible Debenture Offering
BMR is also pleased to announce that it has closed its US$400,000 (approximately
C$549,360) private placement (the “ Private Placement ”) of senior unsecured
convertible debentures (the “ Debentures”), which was previously announced on
March 11, 2024.
As previously announced, the Debentures will mature on September 30th, 2026 (the
“Maturity Date”) and will bear interest at 10% per annum, compounding annually
on September 30th of each year, not in advance. Interest accrued from the date of
issuance up to and including March 30 th, 2025, will be paid by way of issuance of
common shares of the Company. Interest accrued following March 30 th, 2025, will
be, at the option of the holder, paid either in cash or by way of issuance of common
shares of the Company. The issuance of common shares as payment of interest will
be at the then current market price of the Company’s common shares at the date the
interest becomes payab le and will be subject to the prior acceptance of the TSX
Venture Exchange and applicable securities laws.
The holder of a Debenture may, at their option, at any time preceding the Maturity
Date, convert all, but not less than all, of the principal amount of such Debenture
into common shares of the Company at the conversion price of US$0.22 per share
(approximately C$0.30 per share).
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All Debentures issued in the Private Placement and in connection with the debt
consolidation are subject to a four month hold period under applicable Canadian
securities laws and under the policies of the TSX Venture Exchange. The Debenture
issuances are subject to acceptance by the TSX Venture Exchange.
MI 61-101 Matters
Weston Energy II LLC , a subscriber for Debentures in the Private Placement, is a
“related party” to BMR pursuant to pursuant to Multilateral Instrument 61 -101 –
Protection of Minority Security Holders in Special Transactions (“MI 61-101“). Prior
to giving effect to the transactions disclosed in this news release, Weston Energy II
LLC and its affiliates owned or controlled (directly or indirectly) 107,578,740 BMR
Common Shares on an undiluted basis (representing approximately 59.4% of the
outstanding BMR Common Shares on an undiluted basis).
Weston Energy II LLC’s participation in the Private Placement constitutes a “related
party transaction” for the purposes of MI 61-101. The transaction is exempt from the
formal valuation requirements of MI 61 -101 as the fair market value of the
transaction does not exceed 25% of BMR’s market capitalization and BMR is not listed
on a specified market ( pursuant to the exemptions set forth in Section 5.5(a) and
5.5(b) of MI 61 -101, respectively ) and is further exempt from the minority
shareholder approval requirements of MI 61-101 by virtue of Section 5.7 (1)(a) and
5.7(1)(b) of MI 61 -101 which provides that a related party transaction is exempt
from the minority shareholder approval requirements if the fair market value of the
transaction is not more than 25% of the issuer’s market capitalization or is not more
than $2,500,000, respectively.
Additional Disclosure Regarding the Fiera Credit Agreement
BMR is also providing additional information in connection with the C$8M credit
agreement with Fiera Enhanced Private Debt Fund . ESI Energy Services Inc., a
subsidiary of BMR and the borrower under the credit agreement, paid a commitment
fee of C$120,000 in connection with the signing of the credit agreement.
Exchange Rates
All USD amounts for which CAD equivalent amounts are given in this news release
were calculated at CAD/USD exchange rate of 1.3 734, the exchange rate published
by the Bank of Canada on May 8th, 2024.
About Battery Mineral Resources Corp.
Battery Mineral Resources has re-started and is currently ramping up mine and mill
operations at the Punitaqui Mining Complex, a historic copper-gold-silver producer,
in the Coquimbo region of Chile. The mission of the Company is to provide
shareholders with an opportunity to realize growth in value via generation of positive
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cashflow at Punitaqui and to use this momentum as a platform to build a mid -tier
copper producing company. BMR strives to be a company providing shareholders
accretive 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 (primarily copper and also cobalt, lithium and graphite), 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 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 +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 Toronto Venture
Exchange under the symbol “BMR” and on the OTCQB un der 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
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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,
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+.