Three Valley Copper Provides Update on MTV’s Filing for Creditor Protection in Chile
FOR IMMEDIATE RELEASE
Three Valley Copper Provides Update on MTV’s Filing for Creditor Protection in Chile
TORONTO, July 15, 2022 (TSXV: TVC) (OTCQB: TVCCF) Three Valley Copper Corp. (“Three Valley Copper”
or the “ Company”) today announced that the Chilean court’s response to the filing of a Judicial
Restructuring Procedure (“JRP”) by Minera Tres Valles SpA (“MTV”), the Company’s 95.1% Chilean copper
mining subsidiary, is delayed.
MTV commenced reorganization proceedings by filing a JRP in Chile on June 13, 2022, to seek protection
from creditors to give MTV a further opportunity to seek a long-term financing solution to ensure MTV’s
continuity of operations . This is similar to filing for creditor protection under the Companies’ Creditors
Arrangement Act in Canada.
The initial court order sought is expected to provide a stay of creditor claims and the exercise of contractual
rights providing the necessary protection to allow MTV to continue its focus on sourcing a long- term
financial partner that will encourage its creditors to restructure their debts leading to a secure financial
foundation to grow MTV’s business.
MTV has been notified that there is a procedural delay in granting the court order and expects the Chilean
courts to issue the initial court order by the end of July 2022 . If the initial court order is not granted, it is
expected that 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. If MTV is successful
in restructuring its existing debt and in sourcing additional financing, there will likely be a material dilution
to the Company’s ownership interest in MTV, including the possibility that the Company would no longer
hold majority control of MTV.
To date, Anglo American Marketing Limited and a fund managed by Kimura Capital (the “Senior Lenders”
to MTV) have not reached agreement between themselves to further support MTV in the future nor has
longer-term capital been sourced. The Company remains in constant dialogue with the Senior Lenders and
discussions continue on how to best support MTV with the goal of sourcing additional longer-term capital.
MTV has initiated a full care and maintenance program with over half of its 200 direct employees being
terminated thus far and its underground contractor demobilized. MTV’s current projections provide for its
cash resources to be extended into August 2022.
The Company will provide a further update on the JRP as the application proceeds.
About Three Valley Copper
Three Valley Copper, headquartered in Toronto, Ontario, Canada is focused on copper production from 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", "esti mate", "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; expectations regarding the timing and grant of the JRP and the affects of any potential
order; and expectations regarding 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 h ave 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; 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 is a procedure 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 St atements 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 c ontract; (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.
Cautionary Note to United States Investors Concerning Estimates of measured, indicated and inferred
mineral resources
This news release may use the terms "measured", "indicated" and "inferred" mineral resources.
Historically, while such terms were recognized and required by Canadian regulations, they were not
recognized by the United States Securities and Exchange Commission ( the “SEC”). The SEC has adopted
amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers
whose securities are registered with the SEC under the Securities and Exchange Act of 1934, as amended
(the “Exchange Act”). These amendments became effective February 25, 2019 (the “ SEC Modernization
Rules”) with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC
Modernization Rules replace the historical property disclosure requirements for mining registrants that
were included in SEC Industry Guide 7, which will be rescinded from and after the required compliance
date of the SEC Modernization Rules. As a result of the adoption of the SEC Modernization Rules, the SEC
now recognizes estimates of “measured”, “indicated” and “inferred” mineral resources. In addition, the
SEC has amended its definitions of “proven mineral reserves” and “probable mineral reserves” to be
substantially similar to the corresponding Canadian Institute of Mining, Metallurgy and Petroleum
definitions, as required by NI 43 -101. Investors are cautioned that "Inferred mineral resources" have a
great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot
be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.
Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or
other economic studies. United States investors are cauti oned not to assume that all or any part of
measured or indicated mineral resources will ever be converted into mineral reserves. United States
investors are also cautioned not to assume that all or any part of an inferred mineral resource exists or is
economically or legally mineable.
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.
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.