Three Valley Copper Provides Corporate Update
FOR IMMEDIATE RELEASE
Three Valley Copper Provides Corporate Update
TORONTO, September 30, 2022 (TSXV: TVC) (OTCQB: TVCCF) Three Valley Copper Corp. (“ Three Valley
Copper” or the “ Company”) provides an update on its 95.1% owned Minera Tres Valles SpA (“ MTV”)
property near Salamanca, Region de Coquimbo, Chile.
Since the Judicial Restructuring Procedure (“JRP”) was filed in Chile on June 13, 2022, the Chilean courts
have neither confirmed nor denied the application for creditors protection. If granted, it will be similar to
being granted creditor protection under the Companies’ Creditors Arrangement Act in Canada.
Since the filing on June 13, 2022, MTV has progressed with the termination of over half of its work force
and the underground contractor for the Papomono mine has demobilized. Further planned terminations
are expected to occur during the fourth quarter. The infrastructure of Papomono built to date is expected
to remain stable for the next 6 to 12 months with minimal maintenance and MTV now expects to continue
producing limited copper cathodes from the existing material on the heap leach until the end of December
2022, with MTV’s cash resources expected to be exhausted shortly thereafter.
Concessions from certain important suppliers together with unexpected benefits in the heap leach
generated by the past months of above-average precipitation, have provided MTV the ability to generate
additional copper cathodes from its current inventory. It is MTV’s expectation that copper cathodes can
be harvested for the remainder of 2022 at a marginal profit but cautions that certain assumptions are
subject to change which could change this expectation. The performance of the heap leach is critical and
monitored closely in the event that circumstances change that would affect the copper cathode
production projection. These recent developments have provided the Company and MTV additional time
to attract long-term investment.
The Company maintains dialogue with Anglo American Marketing Limited and a fund managed by Kimura
Capital (the “Senior Lenders” to MTV) to source a long-term investor. To date, a solution to support MTV
has not been identified. The Company is uncertain whether this can be achieved with the Senior Lenders’
cooperation and is cautious in attributing any probability that a fulsome financial support solution from
the Senior Lenders and/or new investor will be available.
If MTV is successful in sourcing a longer-term capital support solution and restructuring its existing debt,
there will likely be a material dilution to the Company’s ownership interest in MTV, including the likelihood
that the Company would no longer hold majority control of MTV. If a longer-term capital support solution
and/or restructuring is unsuccessful, MTV could be forced to liquidate or be sold, which could adversely
impact the Company’s ability to recover any or all of the Company’s investment in MTV. The public
company, Three Valley Copper, is expected to continue as a going concern even if a liquidation event occurs
at MTV.
As a result of the current financial situation of MTV, certain defaults of the senior secured debt facility
have occurred and are continuing. While the Senior Lenders have not provided a notice thereof to MTV,
they have expressly reserved their rights.
About Three Valley Copper
Three Valley Copper, headquartered in Toronto, Ontario, Canada is focused on its primary asset, Minera
Tres Valles. Located in Salamanca, Chile, MTV is 95.1% 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 the Company, please visit www.threevalleycopper.com.
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", "anticipate", "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 Forward-Looking
Statements pertaining to: expected cash flow and capital resources; ability of the Company to continue as
a going concern; infrastructure at MTV remaining stable during the stated period; expected profitability
and cash flow of MTV’s operations; the Company’s dilution of ownership in MTV and potential sale or
liquidation of MTV; the potential grant of and effects of the judicial order; and the expectations regarding
MTV’s debt restructuring and additional financing.
Although TVC 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 availability of certain consumables (including
water) and services and the prices for power, sulfuric acid and other key supplies; expected labour and
materials costs and available supply; MTV’s planned maintenance being sufficient to maintain
infrastructure stability at Papomono during the stated period; concessions from key suppliers continuing
until the end of 2022; certain tax rates, including the allocation of certain tax attributes, being applicable
to MTV; the continued availability of quality management; expected ability to repay the indebtedness of
MTV; the JRP continues to be a process available to MTV; and MTV will be able to maintain sufficient staff
to continue processing operations.
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, including: (i) possible variations in grade
or recovery rates; (ii) copper price fluctuations and uncertainties; (iii) delays in obtaining governmental
approvals or financing; (iv) risks associated with the mining industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of estimates and projections relating to
mineral reserves, production, costs and expenses; and labour, health, safety and environmental risks) and
risks associated with the other portfolio companies' industries in general; (v) performance of the
counterparty to the ENAMI contract; (vi) risks associated with investments in emerging markets; (vii)
general economic, market and business conditions; (viii) market volatility that would affect the ability to
enter or exit investments; (ix) commodity price and foreign exchange fluctuations and uncertainties; (x)
risks associated with catastrophic events, manmade disasters, terrorist attacks, wars and other conflicts,
or an outbreak of a public health pandemic or other public health crises, including COVID-19; (xi) those
risks disclosed under the heading "Risk Management" in TVC’s Management’s Discussion and Analysis for
the period ended December 31, 2021; and (xii) those risks disclosed under the heading "Risk Factors" or
incorporated by reference into TVC’s Annual Information Form dated March 3, 2021. The Forward-Looking
Statements speak only as of the date hereof, unless otherwise specifically noted, and the Company does
not assume any obligation to publicly update any Forward-Looking Statements, whether as a result of new
information, future events or otherwise, except as may be expressly required by applicable Canadian
securities laws.
For further information:
Michael Staresinic
President and 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: Three Valley Copper Corp.
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policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news
release.