Battery Mineral Resources Corp. Announces Additional Financing
Rhea-AI Summary
Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) has secured additional financing through two loans: a US$567,000 loan from director Lazaros Nikeas on September 25, 2024, and a US$2,500,000 loan from Weston Energy III, on October 9, 2024. The Weston III loan, maturing on December 5, 2024, with an 8% annual interest rate, will be used for operations at the Punitaqui copper project in Chile and general corporate purposes. It was also used to repay the Nikeas loan in full.
These loans are considered related party transactions under MI 61-101 but are exempt from formal valuation and minority shareholder approval requirements. The additional funds will support BMR's efforts to increase copper concentrate production and optimize operations at the Punitaqui Mining Complex.
Positive
- Secured additional financing of US$2,500,000 to support operations
- Funds will be used to ramp up copper concentrate production at Punitaqui Mining Complex
- Loan terms appear favorable with 8% interest rate and short-term maturity
Negative
- Increasing debt obligations with new loans
- Related party transactions may raise concerns about potential conflicts of interest
News Market Reaction – BTRMF
On the day this news was published, BTRMF declined 5.06%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - October 15, 2024) - Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) ("Battery" or "BMR" or the "Company") is pleased to announce that, (a) on September 25, 2024, the Company was advanced a loan in the amount of US
Max Satel, Battery's CFO stated, "These additional funds will further enhance Battery's ability to ramp up copper concentrate production and to further optimize operations at our Punitaqui Mining Complex, as we continue our mission of building a mid-tier copper producer."
The Weston III Loan matures on December 5, 2024 and accrues interest at a rate per annum equal to eight percent (
No bonus securities were issued for either of the Loans. The Loans are subject to acceptance by the TSX Venture Exchange.
Exchange Rates
All USD amounts for which CAD equivalent amounts are given in this news release were calculated at CAD/USD exchange rate of 1.3754, the exchange rate published by the Bank of Canada on October 10, 2024.
MI 61-101 Matters
Weston III and Nikeas are each a "related party" to BMR pursuant to pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Prior to giving effect to the transactions disclosed in this news release, Weston III and its affiliates own or control (directly or indirectly) 107,578,740 BMR Common Shares on an undiluted basis and 193,011,575 BMR Common Shares on a diluted basis assuming conversion of all outstanding debentures (representing approximately
The Loans each constitute a "related party transaction" for the purposes of MI 61-101. Each Loan is exempt from the formal valuation requirements of MI 61-101 as BMR is not listed on a specified market that would require compliance with such formal valuation requirements (as set forth in Section 5.5(b) of MI 61-101). The Loans are further exempt from the minority shareholder approval requirements of MI 61-101 under Section 5.7(1)(j) by virtue of each Loan being on reasonable commercial terms not less advantageous than would be obtained from a third party lender and, in the case of the Nikeas Loan, under Section 5.7(1)(a) by virtue of the amount of the Loan being not more than
About Battery Mineral Resources Corp.
BMR's mission is to build a mid-tier copper producer and has recently initiated mine and mill operations at the Punitaqui Mining Complex, a historic copper-gold-silver producer, in the Coquimbo region of Chile. BMR is unique because it leverages the inherent value from its
For more information, please contact:
Martin Kostuik, CEO
Phone: +1 (604) 628-1110
info@bmrcorp.com
Twitter: @BMRcorp_
Facebook: Battery Mineral Resources Corp. | Facebook
LinkedIn: Battery Mineral Resources Corp.: My Company | LinkedIn
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, the ability of the Company to obtain sufficient financing to complete exploration and development activities, 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. BMR 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. For further information regarding the risks please refer to the risk factors discussed in BMR's most recent Management Discussion and Analysis filed on SEDAR+.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226701