Battery Mineral Resources Corp. Provides Review of 2023 Accomplishments and Outlook for 2024
Battery Mineral Resources Corp. Provides Review of 2023
Accomplishments and Outlook for 2024
Vancouver, British Columbia – (March 18, 2024) – Battery Mineral Resources Corp.
(TSXV: BMR) (OTCQB: BTRMF) (“Battery” or “BMR” or the “Company”) is pleased
to provide a review of the Company’s accomplishments in 2023 as well as an outlook
and updates for 2024. The year 2023 brought significant improvements in the areas
of funding, permitting and operational readiness for the Punitaqui mine in Chile.
Funding Highlights 2023 and 2024
BMR accomplished multiple major funding milestones in 2023 , and applied the
proceeds towards working capital and the restart of copper concentrate production
at its Punitaqui copper project in Chile, including:
• Bridge loan - Beginning on June 7, BMR increased its bridge loan facility from
its major shareholder from US$4 million to US$5.3 million (“M”) while also
extending the maturity date to September 15, 2023. This additional financial
flexibility allowed BMR to continue advancing its Punitaqui project towards
development without the need for the issuance of equity. BMR used the
proceeds of the expanded loan to continue advancing Punitaqui towards
restarting sustainable copper concentrate production, and for add itional
working capital.
• Promissory note - Procured further non-dilutive funding, when BMR announced
on July 5, 2023 , having obtained a further debt financing in the form of a
promissory note of US$2M, also from its major shareholder. The US$2M
promissory note provided BMR additional flexibility as it worked to secure the
final funding for the restart of copper concentrate production from its Punitaqui
Copper Mining Complex.
• Private placement and capital reorganization - A non-brokered private
placement offering of up to US$6M in unsecured convertible debentures, press
released on October 17, 2023. In connection with the private placement, BMR
issued US$15.4 million in convertible debentures to its existing debtholders to
refinance substantially all the Company’s previously outstanding indebtedness.
• First closing - The Company’s press release of October 19, 2023 announced a
first closing of the private placement of convertible debentures for gross
proceeds of US$1.37M.
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• Second closing - On November 3, 2023, BMR announced a second closing of
the priva te placement of convertible debentures for gross proceeds of
US$1.915M which brought the total raised in the first two closings to
US$3.285M.
In addition, funds drawn from ESI Energy Services, Inc. (“ESI”), beginning with the
US$2M equipment refinancing announced on December 29, 2022 and including
subsequent intermittent cash disbursements from ESI to BMR, totaling approximately
US$2.68M for 2023.
Extending into Q1 of 2024, funding highlights are as follows:
• BMR closed further convertible debenture funding, as announced on February
16 and March 11, bringing the total raised to US$4.685M;
• Announced on March 11, the Company’s wholly-owned subsidiary, ESI entered
into an C$8M credit agreement with Fiera Enhanced Private Debt Fund; and
• Also, coincident with the Javelin Global Commodities (“ Javelin”) copper
concentrate marketing agreement announced on February 12, Minera BMR SpA
(the Company’s 100%-owned Chilean subsidiary) received a pre-payment of
US$5M, and entered into advance payment terms in respect of shipments of
copper concentrate, gold, silver, and other metals delivered from time to time
in an amount of up to US$20M.
Permitting and Operational Highlights 2023 and 2024
2023 was a transformational year at our Punitaqui project in Chile, as the Company
announced in December that the precursor to restarting Punitaqui had begun. In this
regard, p ersonnel hiring for the resumption of full operations at Punitaqui
commenced. 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 Punitaqui processing plant and
start-up in Q2, 2024.
The restart of pre-operational activities at Punitaqui was initiated subsequent to the
permit for the San Andres mine being granted, which allows for BMR to commence
drifting, ramp construction and mine development on two different elevation levels
and allows for establishment of new underground exploration drilling platforms. This
mine development will establish access to new zones of copper mineralization for the
forthcoming mine production. A further permit granting was announced in December
2023 which permits BMR to place thickened copper concentrate tailings into the
tailing’s storage facility of up to 1.5M tonnes - representing approximately 20 months
of mine and plant operations during the first phase of operations at Punitaqui. Beyond
this initial 20-month operating period, the Company expects to receive a permit for
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“dry stack” or filtered tailings deposition in late-2024. Filtered tailings deposition has
several benefits over thickened tailings deposition including lower water consumption
in plant operations and greater capacity for tailings storage over the same physical
footprint. Construction and commissioning of the tailings filter plant will take
approximately nine months and thereafter, filtered tailings are expected to be
deposited. Deposition of filtered tailings will allow for an additional eight -plus years
of tailings storage at our permitted mining rate. This will be accomplished over nearly
the same footprint the current tailings storage facility occupies.
In addition, as highlighted in the February 13 , 2023 press release, BMR executed a
strategic a greement with Anglo -American PLC (“Anglo”) to sell slag copper
concentrates produced at the Punitaqui plant. Anglo has agreed to purchase all the
copper concentrate to be produced from 240,000 tonnes of Anglo- supplied copper
slags.
Extending into Q1 of 2024, further permitting achievements were as follows:
• Cinabrio and San Andres now have all operational permits in place for mine
development and exploitation;
• Dalmacia initial permit for rehabilitation and drifting development was
received; and,
• New mine and mill closure plans have been approved by the regulatory
authorities.
Extending into Q1 of 2024, further operational achievements were as follows:
• Development drifting in San Andres began and had success intercepting
potential feed for the Punitaqui plant earlier than expected;
• Initiation of mine maintenance in Cinabrio, the original mine which provided
copper mineralized material to the Punitaqui plant for approximately 10 years;
• Infill core drilling began in San Andres. This work will fine tune the amount of
tons and grade that will be mined in the following weeks in San Andres; and
• Plant maintenance is well advanced (85%) . These activities are focussed on
repairs, replacements, and upgrades.
As the Company expects to begin copper concentrate production in the first half of
this year from its Punitaqui copper mine, activities continue to ramp up. The timeline
from first fresh ore through the mill, increasing to full commissioning and eventual
commercial production is expected to require approximately nine months. The
company is aiming to complete all mine and plant rehabilitation prior to plant
commissioning. Subsequent to this, progress of underground mine development in
Cinabrio and San Andres will allow BMR to begin processing its own ore. Reaching
the Company’s full permitted run rate of 100,000 tonnes per month of ore
throughput, BMR expects Punitaqui full year production rate should be in the range
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of 18 to 20 million pounds of copper in concentrate. During the ramp up period while
the Cinabrio and San Andres mines are in operation, the company will continue
advancing toward its Cinabrio Norte zone to eventually commence active mining in
Q? 2024/2025?
As part of the ongoing operational readiness during 2024, BMR expects to complete
underground infill and extensional drilling at San Andreas and Cinabrio. The drilling
program is designed to further define areas that could be included in mine sequencing
and for grade control purposes. The company looks forward to reporting the results
of this drilling during the course of the year.
Environmental and Community Highlights 2023
In 2023, BMR advanced its environmental and community initiatives including the
filing of the Company’s inaugural environmental and social governance report (“ESG
Report”), announced on June 7, 2023.
Additional highlights in 2023 included:
• Completing agreements with the local community of Agricola Potrerillos Alto
(“Potrerillos Community”) and the town of Agricola Punitaqui (“ Punitaqui
Community”). These agreements allow for surface exploration consisting of a
ground magnetic survey, geological mapping, and sampling to identify
potential new targets on grounds for which the Potrerillos Community has
surface rights to, and allows BMR to drill the potential targets at a later date.
• To support, aid and improve the local communities, BMR also agreed to fund
the construction of a water well for the people of Potrerillos.
• BMR’s social and community relations consultant, Integratio Mediação Social e
Sustentabilidade, completed the community relationship policies and
consultation manuals that will support and guide the Company’s social
engagement strategy for the future.
• The Company is currently proactively engaging with both of our local
communities of Potrerillos and Punitaqui as well as the local and regional
authorities on the status of the project in terms of social impact and
employment opportunities.
Additionally, BMR reached an agreement to contribute to the widening of the
road and an increase of the asphaltic pavement to support trucking of feed
for the Punitaqui plant from Dalmacia.
CEO Commentary
Martin Kostuik, Battery’s CEO stated, “BMR’s management and board look forward to
continuing the march towards copper production at Punitaqui. With a motivated and
capable operating team coupled with great assets and an outlook for strong copper
markets, the Company is in a very favorable position to provide ever greater value
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for it’s shareholders. As 2024 unfolds, we are excited to continue to share progress
and results.”
Additional Disclosure Regarding the Credit Agreement
BMR is also providing additional information in connection with the C$8M credit
agreement with Fiera Enhanced Private Debt Fund . The loans advanced under the
credit agreement bear interest at a floating prime rate plus 420 basis points. The
loans will mature on the third anniversary of the credit agreement. With respect to
the first advance under the credit agreement, the maturity date shall therefore be
March 8, 2027. The second advance under the credit agreement has not been made
and remains subject to the satisfaction of certain conditions.
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)
www.investorbrandnetwork.com/
310.299.1717 Office
Twitter: @BMRcorp_
Facebook: Battery Mineral Resources Corp. | Facebook
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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,
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 fut ure 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+.