Battery Mineral Resources Corp. Raises C$4.0 Million Through Sale- Leaseback Transaction of Industrial Property Held by Subsidiary
Battery Mineral Resources Corp. Raises C$4.0 Million Through Sale-
Leaseback Transaction of Industrial Property Held by Subsidiary
Vancouver, British Columbia – (June 13, 2022) – Battery Mineral Resources Corp.
(TSXV: BMR) (OTCQB: BTRMF) (“Battery” or “BMR” or the “Company”) is pleased
to announce that it has closed a non-dilutive sale-leaseback transaction on a n
industrial property located at 7102 West Sherman Street, Phoenix, Arizona (the
“Property”), previously held by Ozzie’s, Inc. (“Ozzie’s”), the Company’s U.S.
subsidiary of BMR’s 100%-owned ESI Energy Services, Inc, which operates in the
equipment rental and sales sector of the pipeline and renewable energy space (the
“Transaction”).
The Transaction raised proceeds of approximately C$4.0 million, after the repayment
of all indebtedness on the Property and the payment of transaction costs , but prior
to the payment of estimated taxes on the disposition of the Property. Proceeds from
the Transaction will be applied to re -commence operations at the Company’s
Punitaqui Mining Complex, a past copper -gold produc ing mine located in the
Coquimbo region of Chile. The Company is currently exploring interest from parties
to supply the balance of the cost, estimated at C$20 million, via additional and non-
dilutive avenues.
Battery CEO Martin Kostuik states: “We are very pleased to announce the closing of
the sale-leaseback transaction for the West Sherman Street property. The transaction
represents a creative, non-dilutive means for BMR to raise capital, which we will apply
in the near-term towards preparing for operations at Punitaqui. We look forward to
sharing ongoing updates with the market on additional financing initiatives and other
key milestones, as we advance towards restarting mine operations followed by copper
production and generating positive cash-flow at Punitaqui.”
As part of the Transaction, Ozzie’s has entered into a lease agreement on the Property
(the “Lease Agreement”) with the purchaser of the Property. Ozzie’s shall lease the
Property for a term of 60 months at an initial lease rate of approximately US$26,200
per month, to be paid from Ozzie’s cash flows. The taxes payable by Ozzie’s on the
proceeds from the Transaction are estimated to be approximately C$0.5 million and
shall be paid by Ozzie’s following the filing of tax returns for its fiscal year ending
December 31, 2022.
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
- 2 -
{01833147.1}
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, to become a premier and responsible supplier of
battery minerals to the electrification marketplace. BMR is currently pursuing a
potential near-term resumption of mine operations, followed by copper production in
late 2022, of the Punitaqui Mining Complex, a past copper -gold producer located in
the Coquimbo region of Chile. Punitaqui, operating as recently as April of 2020, has
a 9+ yea r operating history and produced between 20 and 25 million pounds of
copper annually. 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., and its
US subsidiary O zzie’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
Mars Investor Relations
+1 (604) 335-1976
Harbor Access Corp Investor Relations
+1 (475) 477-9402
Twitter: @BMRcorp_
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
- 3 -
{01833147.1}
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 achievem ents 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, 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.