SRHI Inc. Announces Increase in Ownership of MTV to 90.3%, Name Change to Three Valley Copper and Management Additions
FOR IMMEDIATE RELEASE
SRHI Inc. Announces Increase in Ownership of MTV to 90.3%, Name Change to Three Valley Copper and
Management Additions
(all amounts expressed in US dollars)
TORONTO, June 4, 2021 (TSXV: SRHI) - SRHI Inc. ("SRHI" or the "Company”) today announces that its ownership of
Minera Tres Valles Spa (“ MTV”) increased to 90.3% from 70%, shareholders approved a name change of the
Company to Three Valley Copper Corp. and the appointment of Ian MacNeily as Chief Financial Officer and Joe
Phillips as Chief Operating Officer, effective immediately.
MTV Ownership Increase
On April 16, 2021, the Company announced the closing of a bought -deal financing (the “ Financing”) to help
support the operations of MTV. In accordance with the MTV shareholders agreement (the “ SHA”), the minority
shareholder of MTV (the “ Minority Shareholder ”) and SRH Chile SpA (an indirect, wholly -owned subsidiary of
SRHI) were provided the opportunity to subscribe for newly issued shares of MTV. The Minority Shareholder did
not participate resulting in the dilution of their MTV ownership from 30% to 9.7%.
SRHI purchased its 70% equity position from the Minority Shareholder in 2017, and since then, the Company has
supported MTV financially with intercompany debt and at each instance, the Minority Shareholder (i)
acknowledged and approved the terms and conditions of the intercompany financing, and (ii) expressly indicated
that it had no intention to provide financing to MTV. To date, the Minority Shareholder has not contributed any
capital to financially support MTV. The Company’s intercompany debt balance with MTV stands at approximately
$35 million.
The Minority Shareholder has filed a “Request for Arbitration” under the SHA pursuant to the rules of the
“International Court of Arbitration of the International Chamber of Commerce” (the “Filing”) alleging, among other
things, that the equity contribution did not comply with the SHA and claiming damages of $16 million. While the
Filing is still being reviewed, the Company believes the allegations are without merit and will support its
subsidiaries to defend themselves vigorously.
Name Change
At the Company’s annual and special meeting of shareholders held on June 2, 2021, shareholders approved a
resolution to change the name of the Company. Yesterday, the board of directors approved changing the name of
the Company to Three Valley Copper Corp. and is in the process of fulfilling all necessary regulato ry and other
requirements to make the name change effective during the second half of June 2021. Until that time, the
Company will continue to trade on the TSX Venture Exchange under its current ticker symbol before transitioning
to Three Valley Copper Corp. under its new ticker symbol.
Management Additions
“I am pleased to welcome both Ian and Joe to the Company,” stated Michael Staresinic, CEO of the Company. “Joe
has worked as MTV ’s COO for the last several years and together with his recent directorship position at SRHI, it
was fitting to also appoint Joe as COO of the Company. I also welcome Ian as the newest member of our
management team and look forward to his many years of mining ex perience and entrepreneurial nature that will
be applied to our growing business. Finally, I welcome Dr. John Mortimer as our independent exploration geologist
to lead our exploration efforts. John has been retained as an external consultant and we look forward to working
closely with him and executing on his recommendations.”
Mr. MacNeily brings more than 20 years of executive financial management and leadership experience in the
mining sector. As a senior executive for a number of global mining an d development companies, he has
considerable experience in strategic planning, acquisitions, financial controls and reporting, capital restructuring
and funding, metal trading, and implementing successful finance programs that have resulted in improved financial
position and increased shareholder value. Prior mining companies where he served in a senior finance capacity
include Abacus Mining Corp., North American Palladium Ltd., SRA Corporation, Desert Sun Mining, and Pangea
Goldfields Inc. where he managed the successful $210 million acquisition by Barrick Gold Corporation. Prior to
entering the resource sector, his experience includes seven years with Burns Fry (now BMO Nesbitt Burns) in
both Toronto and London, U.K., managing treasury and operational activities of the firm.
Mr. Phillips is a senior mining executive with 48 years of experience in the construction, commissioning and
operation of mining projects in 13 countries (7 in Latin America) on 5 continents. He has directed the construction,
commissioning and operation of 11 plants and mining operations. Prior to MTV, he held senior executive roles such
as Chairman, COO, VP Operations, Chief Restructuring Officer, Chief Development Officer and Senior VP
Development. Mr. Phillips is a Registered Professional Mining Engineer, graduating from the Colorado School of
Mines ("CSM"), and with graduate studies in Engineering Management at the University of South Florida. At CSM
he was the “Outstanding Graduate in Engineering Geology”, a member of Tau Beta Pi engineering honorary, Sigma
Gamma Epsilon service honorary, and a Distinguished Military Graduate.
Dr. Mortimer is an independent consulting geologist working internationall y in the metals industry. His technical
skills include field geology, 3D geological modelling, exploration geoscience, exploration targeting and geoscience
aspects of investment evaluation. His experience includes greenfield, brownfield and advanced projec t evaluation
and management. He has also worked on a variety of major capital project studies in multi -disciplinary teams on
large copper projects in South America and Australia.
About SRHI Inc.
SRHI, headquartered in Toronto, Ontario, Canada is focused o n growing copper production from, and further
exploration of, its primary asset, MTV . Located in Salamanca, Chile, MTV is 90.3% owned by the Company and
MTV's main assets are the Minera Tres Valles mining complex and its 46,000 hectares of exploratory lands. For
more information about SRHI, please, please visit www.srhi.ca.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this news release contain forward -looking information (collectively referred to herein as the
"Forward-Looking Statements") within the meaning of applicable Canadian securities laws. The use of any of the
words "expect", "anticipa te", "continue", "estimate", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without
limiting the foregoing, this news release contains Forwar d-Looking Statements pertaining to: the filing of the
Request for Arbitration and expectations related to the outcome of arbitration and the Company’s proposed name
change.
Although SRHI believes that the Forward -Looking Statements are reasonable, they are not guarantees of future
results, performance or achievements. A number of factors or assumptions have been used to develop the
Forward-Looking Statements, including: the C ompany’s equity ownership of 90.3% of MTV is binding and that the
Request for Arbitration findings support the Company’s position that the allegations of the Minority Shareholder
are without merit, and that the required regulatory approvals will be obtained for the Company’s name change to
take effect in the second half of June 2021. Although the Company believes that the expectations and assumptions
on which such F orward-Looking Statements and information are based are reasonable, undue reliance should not
be placed on the Forward-Looking Statements and information as the Company cannot give any assurance that
they will prove to be correct. Since Forward-Looking Statements and info rmation address future events and
conditions, by their very nature they involve inherent risks and uncertainties . Actual results, performance or
achievements could vary materially from those expressed or implied by the Forward -Looking Statements should
assumptions underlying the Forward -Looking Statements prove incorrect or should one or more risks or other
factors materialize. Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Other
risk factors that could affect th e Company's operations or financial results are included in the Company's Annual
Information Form dated March 3 , 2021 a nd may be accessed through the SEDAR website ( www.sedar.com). The
forward-looking statements and information contained in this news release are made as of the date hereof and the
Company does not undertake any obligation to update publicly or revise any forward -looking statements or
information, whether as a result of new information, future events or otherwise, unless so required by applicable
securities laws.
You should not place undue importance on forward-looking information and should not rely upon this information
as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake
to update this information at any particular time, except as required by law.
For further information:
Michael Staresinic
Chief Executive Officer
T: (416) 943-7107
Renmark Financial Communications Inc.
Joshua Lavers: [email protected]
T: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com
Source: SRHI Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.