The Prospector News

Battery Mineral Resources Corp. Announces Related Party Loan to Continue Advancing Punitaqui

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

Battery Mineral Resources Corp. Announces Related Party Loan to Continue Advancing Punitaqui






Battery Mineral Resources Corp. (TSX-V: BMR) (OTCQB: BTRMF) announces that it has entered into a loan agreement dated October 20, 2022 to borrow up to USD$4,000,000 from Weston Energy LLC. The Loan proceeds will be received by BMR in one or more advances. The Loan will mature on the date that is 120 days after the Closing Date.



Battery’s CEO and Director, Martin Kostuik states, “As we work diligently to finalize our longer-term funding agreement, we are pleased that Yorktown Partners, through Weston Energy, is providing us with a bridge Loan on very favorable terms. This support from our largest shareholder affords us the flexibility to ensure we receive the best-possible terms for the final piece of project financing needed to restart our Punitaqui copper mine. The loan has a very satisfactory interest rate, contains no dilutive securities such as share purchase warrants, and will be secured by a portion of the heavy equipment of our wholly-owned operating subsidiary, namely Ozzie’s, Inc. (ESI Energy Services). On the heels of the recently announced 6.2 million indicated (and 3.1 million inferred) tonnes of copper resources, we look forward to completing the project financing and shifting our focus to the Punitaqui mine restart and the ramp up to full production in the coming months.”



The outstanding principal balance of each Advance shall bear interest from the date of such Advance at the rate of (i) six percent (6%) per annum for the first ninety days following the Closing Date and (ii) eight percent (8%) per annum at all times thereafter until the earlier of (i) the Maturity Date and (ii) the repayment in full of all amounts payable under the Loan Agreement. The Company may prepay all or any part of the outstanding principal amount of the Loan at any time without notice or penalty provided that such prepayment is accompanied by all accrued and unpaid interest on the principal amount prepaid.



The Company intends to use the proceeds of the Loan to continue advancing the Punitaqui copper mine towards initial production, and for additional working capital.



The Lender has control or direction over securities of the Company carrying more than 10% of the voting rights attached to all of the Company’s outstanding voting securities. Accordingly, the Loan is considered a related party transaction under the policies of the TSX Venture Exchange.



The Company is exempt from the formal valuation requirement under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions as its securities are listed for trading on the TSXV. The Company is also exempt from the minority approval requirement under MI 61-101 as the Loan has been provided on reasonable commercial terms that are not less advantageous to the Company than if it were obtained from an arm’s length party. Further, the Loan is not convertible into or repayable in securities of the Company.




About Battery Mineral Resources Corp.



Battery Mineral Resources 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. Battery Mineral’s mission is the discovery, acquisition, and development of battery metals (namely cobalt, lithium, graphite, and copper), in North America, South America and South Korea, to become a premier and responsible supplier of battery minerals to the electrification marketplace. BMR is currently pursuing a potential near-term resumption of operations in late 2022 of the Punitaqui Mining Complex, a past copper-gold producer, in the Coquimbo region of Chile. BMR is the largest mineral claim holder in the historic Gowganda Cobalt-Silver Camp in Ontario, Canada, and continues to pursue a focused program to build on the recently announced, +1-million-pound high-grade cobalt resource at McAra. In addition, Battery Mineral owns 100% of ESI Energy Services, Inc. a profitable mainline pipeline and renewable energy equipment rental and sales company with operations in Alberta, Canada and Arizona, USA.



Posted October 21, 2022

Share this news article


Silver Storm Extends San Marcos Mine 100 M at Depth With High-grade Drill Results

Silver Storm Mining Ltd. (TSX-V: SVRS) (OTCQB: SVRSF) (FSE: SVR),... READ MORE

June 24, 2024

Victoria Gold: Sale of Clear Creek Property

Victoria Gold Corp. (TSX-VGCX) announces that is has executed a d... READ MORE

June 24, 2024

Graphite One Announces Revised Contract with the U.S. Department of Defense to Increase Share of Expenditures from 50% to 75% for the Feasibility Study

Graphite One Inc. (TSX‐V:GPH) (OTCQX:GPHOF) is pleased to annou... READ MORE

June 24, 2024

Maple Gold Announces Closing of C$4.05 Million Flow-Through Private Placement

Maple Gold Mines Ltd. (TSXV: MGM) (OTCQB: MGMLF) (FSE: M3G) is pl... READ MORE

June 24, 2024

Premier American Uranium and American Future Fuel Announce Updated Mineral Resource Estimate for the Cebolleta Project, Setting the Stage for Planned Expansion Drilling

Premier American Uranium Inc. (TSX-V: PUR) (OTCQB: PAUIF) and Ame... READ MORE

June 24, 2024

Copyright 2024 The Prospector News