Battery Mineral Resources Corp. Announces US$2,000,000 Debt Financing, Closing of Previously Announced Interest Settlement Transactions & Corporate Update
Battery Mineral Resources Corp. Announces US$2,000,000 Debt Financing,
Closing of Previously Announced Interest Settlement Transactions &
Corporate Update
Vancouver, British Columbia – (July 5, 2023) – Battery Mineral Resources Corp.
(TSXV: BMR) (OTCQB: BTRMF) (“Battery” or “BMR” or the “Company”) is pleased
to announce that it has entered into a debt financing arrangement with Weston
Energy LLC (the “ Lender”) for aggregate gross proceeds of US$2,000 ,000. In
connection with the financing, BMR issued a promissory note to the Lender, which
matures on September 15, 2023, and bears interest at a rate of 8% per annum, with
interest payable at the maturity of the note. The proceeds of the financing will be
used for general working capital.
Martin Kostuik, Battery’s CEO and Director stated “we are delighted to have such
strong support from our major shareholder provided by this short -term debt
financing. This funding will allow BMR to continue advancing the Punitaqui copper
mining complex towards a profitable and sustainable restart and most importantly,
gives us more flexibility as we seek the final non-dilutive funding required to restart
Punitaqui, expected in the next one to two months.
The Lender or its affiliates have control or direction over securities of the Company
carrying more than 10% of the voting rights attached to the Company’s outstanding
voting securities. Accordingly, the Loan is considered a “related party transaction” as
defined under Multilateral Instrument 61-101 Protection of Minority Security Holders
in Special Transactions (“MI 61-101”). The Company as its securities are listed for
trading on the TSXV. The Company has relied on the exemptions from the formal
valuation and minority shareholder approval requirements of MI 61-101 contained in
sections 5.5(a), 5.5(b), 5.7(a) and 5.7(f).
In addition, BMR is pleased to announce that the interest settlement agreements with
certain creditors of the Company previously announced on April 14, 2023, have been
approved by the TSX Venture Exchange (the “TSXV”). Pursuant to these agreements,
the Company has agreed to issue an aggregate of 5,217,186 common shares
(“Shares”) in the capital of t he Company to settle $830,037.80 of accrued interest
owed to certain holders of BMR’s convertible debentures (collectively, the “Interest
Settlement Transactions”) as follows:
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• 294,298 Shares at a deemed price of C$0.19 per share.
• 1,138,044 Shares at a deemed price of C$0.18 per share.
• 1,575,758 Shares at a deemed price of C$0.165 per share.
• 2,209,086 Shares at a deemed price of C$0.14 per share.
The share price used to determine the number of shares issued to the holder of each
tranche of the convertible debentures, was the closing share price of the Company's
common shares on the TSX Venture Exchange on the one -year anniversary of the
issuance of each convertible debenture tranche. All securities issued pursuant to the
Interest Settlement Transactions will be subject to a hold period of four months and
one day from the date of issuance, in accordance with applicable securities legislation.
Other Corporate Matters
As the company works towards securing the final non-dilutive funding for the restart
of the Punitaqui copper mining complex, it is also working to advance its ongoing
permitting process as well as strengthen its relationships with its local communities
and other stakeholders. The following is an account of the permitting process as well
an update on environmental and community initiatives.
Environmental and Community Initiatives
Battery currently has a signed agreement in place that grants The Company surface
rights for exploration of “blue sky” areas on its concessions with the Community of
Potrerillos. BMR Geologists have now ide ntified the “blue sky” areas, with the next
step being to formalize easement agreements with the Potrerillos Community, which
is expected in the coming months. Additionally, BMR is pleased to report that The
Company's third-party community relations consultant Integratio Mediação Social e
Sustentabilidade (“Integratio”) has completed the essential community relationship
policies and manuals that will support and guide the BMR’s social strategy.
The Chilean Ministry of Public Workings ("MOP") is currently enhancing part of the
road that connects the Punitaqui Plant to the Dalmacia deposit. BMR has reached an
agreement to contribute to widening the road and increasing the asphalt to support
trucks hauling ore from Dalmacia to the Plant. Conversations with members of the
Community of Punitaqui to establish the easement agreements for the Dalmacia -
Plant Road are in already in progress. BMR looks forward to updating the progress on
these agreements in the coming months.
The Company is proud to report that its now a member of the regional association of
mining companies, the Consejo Reginal Minero Región de Coquimbo ("CORMINCO")
and looks forward to continuing working with the association. In the past three
months Battery has participated in several meetings organized by CORMINCO with
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regional authorities, including one of the senators of the region and the presidential
delegate of the Limari Province. These meetings have been useful to introduce BMR
to government entities and gain valuable support for our ongoing permitting process.
Additionally, BMR is very proud to announce that its SONAMI
affiliation (the Sociedad Nacional de Mineria) has been completed. SONAMI is the
trade union institution that groups and represents t he mining activity of large,
medium, and small scale, metallic and non-metallic mining companies in Chile. It was
founded in 1883 and since its creation, it has contributed to the development of public
and private mining and the improvement of mining insti tutions and legislation, as
well as to the professionalization of workers in the sector. It currently brings together
76 medium and large mining companies and supplier companies, as well as 38
regional mining associations, representing more than two thousa nd small mining
entrepreneurs. BMR's Initial meetings with SONAMI have already taken place to
obtain their support and participate in their specialized committees and The Company
intends to continue to support and strengthen this important association by a ny
possible means.
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
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
Corporate Communications
IBN (InvestorBrandNetwork)
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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
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 limit ation, 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 prope rties, 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.