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The net proceeds of the Credit Agreement will be primarily distributed by ESI to the Company for use towards the restart of copper concentrate production at its
In this regard, personnel hiring for the resumption of full operations at Punitaqui remains on schedule. Mine maintenance at the San Andres mine is nearly complete with mine maintenance at the Cinabrio mine, the original mine which served to supply the Punitaqui plant with copper mineralised material for the 10+ years of prior operations, is well underway. All activities in the mines and the plant which are aimed at full operational commissioning of the plant in the near term and plant start-up in Q2 of 2024 are also progressing well.
Credit Agreement Terms
The loans advanced under the Credit Agreement bear interest at a floating prime rate plus an applicable margin and will mature on the third anniversary of the Credit Agreement. ESI is required to make monthly principal repayments based on a seven-year amortization schedule. ESI anticipates servicing its payment obligations under the Credit Agreement out of operating cash flows, including from operations of its wholly-owned subsidiary, Ozzie’s Inc. (“Ozzie’s”).
The obligations of ESI under the Credit Agreement have been guaranteed by Ozzie’s and secured by all of the assets of ESI and Ozzie’s. In addition, ESI’s direct parent,
The Credit Agreement contains customary representations and warranties, covenants and events of default, including requirements that ESI maintain a minimum working capital ratio, a minimum fixed coverage charge ratio and a minimum quarterly revenue level. A copy of the Credit Agreement will be available on the Company’s SEDAR+ profile at www.sedarplus.ca.
Fiera is an arm’s length party from the Company and ESI and does not currently hold any equity interest in the Company or any of its subsidiaries. The loans advanced under the Credit Agreement are non-convertible into equity of the Company and no bonus securities were issued in connection with the Credit Agreement.
Draw on Javelin Facility
In addition, the Company announces that it has drawn
Debenture Offering
The Company is also pleased to announce a private placement offering (the “Private Placement”) of unsecured convertible debentures (the “Debentures”) for total gross proceeds of up to
The terms of the Debentures will be the same as the debentures which were issued pursuant to the private placement previously announced by the Company in its new releases dated
Specifically, the Debentures will mature on
The holder of a Debenture may, at their option, at any time from the date that is four months and one day following the issuance of such Debenture, and prior to the close of business on the business day immediately preceding the Maturity Date, convert all, but not less than all, of the principal amount of such Debenture into common shares of the Company at the conversion price of
Weston Energy LLC II, a fund operated by
Finder’s Fees Pursuant to First Offering
Pursuant to the First Offering, the Company paid finder’s fees in the aggregate amount of
Resignation of
Exchange Rates
All USD amounts for which CAD equivalent amounts are given in this news release were calculated at CAD/USD exchange rate of 1.3528, the exchange rate published by the
About
BMR is a battery minerals 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 jurisdictions. BMR’s mission is the discovery, acquisition, and development of battery metals (namely cobalt, lithium, graphite, and copper), in
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. The completion of the Private Placement and the transactions contemplated by the Credit Agreement are subject to the acceptance of the
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 (including through the Private Placement and additional draws under the Credit Agreement and the arrangements with Javelin) to complete exploration and development activities, the ability of the Company to close further tranches of the Private Placement and to access further draws under the Credit Agreement and the arrangements with Javelin, the completion, timing and size of the proposed Private Placement, the intended use of the proceeds of the Private Placement and draws under the Credit Agreement and the Javelin arrangements, 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. For further information regarding the risks please refer to the risk factors discussed in Battery’s most recent Management Discussion and Analysis filed on SEDAR+.
Contact Details
+1 604-229-3830
info@bmrcorp.com
Corporate Communications, IBN (InvestorBrandNetwork)
+1 310-299-1717
editor@investorbrandnetwork.com
Company Website
https://bmrcorp.com/
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