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BatteryOne Completes an Oversubscribed Private Placement for $5.85 million

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BatteryOne Completes an Oversubscribed Private Placement for $5.85 million

 

 

 

 

 

BatteryOne Royalty Corp.  is pleased to announce that it has sold 11,693,172 special warrants for aggregate gross proceeds of C$5,846,586 by way of non-brokered private placement.

 

Alex Tsukernik, President and Chief Executive Officer of BatteryOne commented: “We are very pleased to see the strong investor demand on the financing and positive response to our acquisition of the NuevaUnion royalty. This transaction now positions BatteryOne as the premier copper/nickel focused royalty player, which we plan to take public this year.”   

 

A total of approximately C$3.0mm (US$2.25mm) from the Closing was used as an initial payment on a 2.0% net smelter royalty on future copper production on the Cantarito claim of the La Fortuna deposit within the NuevaUnion project, a 50-50 joint venture between Teck Resources Limited and Newmont Corporation (see the Company’s news release dated February 18, 2020). The Company will make a further payment of approximately C$1.0mm (US$0.75mm) in 12 months to complete its payment obligations prior to the start of commercial production from the royalty area. The balance of the proceeds from the Closing will be used for further royalty acquisitions and for general and administrative purposes. The Company intends to go public by way of filing a non-offering prospectus and apply to list its common shares on the TSX Venture Exchange, subject to exchange listing requirements.

 

Each Special Warrant had a subscription price of $0.50 and will be deemed exercised into one unit of the Company, for no additional consideration, on the earlier of (i) becoming a reporting issuer and obtaining a listing of the common shares of the Company on a recognized stock exchange in Canada; (ii) a transaction that provides holders of the Special Warrants with comparable liquidity; or (iii) the date that is four months and one day following the Closing. Each Unit consists of one Common Share and one-half of one Common Share purchase warrant. Each Warrant shall entitle the holder thereof to purchase one Common Share  at an exercise price of C$1.00 at any time up to 24 months following the Closing. In the event the closing price for the Common Shares is C$1.25 or above on the exchange on which the Common Shares trade, for a period of 20 consecutive trading days, the Company may, at its option, accelerate the Expiry Date notifying the holders of the Warrants with the issuance of a press release announcing such acceleration. In this case, the Expiry Date shall be deemed to be the 30th day following the date of issuance of the Acceleration Press Release.

 

NUEVAUNION UPDATE

 

Subsequent to the Company completing its acquisition of the NSR, The Mining Journal and Mining.com reported on February 20, 2020 that Newmont Corporation (NYSE: NEM, TSX: NGT) and Teck Resources Limited (TSX:TCK.A & TCK.B) (NYSE:TCK) are investing US$152mm into the NuevaUnion project to focus on drilling the deep extensions of the La Fortuna Deposit. Based on an evaluation request filed with Chile’s environmental evaluation service (SEA), the property owners reportedly plan to conduct two drilling campaigns, totaling up to 176 holes, with the objective of characterizing the deposit at depth, and laying the foundations for the development of a mining plan focused on La Fortuna Deposit’s deep levels.

 

The Cantarito claim on which BatteryOne is entitled to a 2% NSR on all copper production, is one of the four main areas historically explored at the La Fortuna Deposit, and sits immediately adjacent to the largest area, La Fortuna. The La Fortuna – Cantarito area comprises the largest hydrothermal alteration system of the La Fortuna Deposit, with a quartz-sericite alteration in excess of 1.2 squared kilometers. Based on an optimized pit-shell at commodity prices of $2.25/lb copper and $950/oz gold, Cantarito accounts for approximately 8% of the resource tonnes of the La Fortuna Deposit.

 

ABOUT BATTERYONE

 

BatteryOne is a private royalty company focused on gaining exposure to the world’s premier copper and nickel deposits, that will be required for the electric energy transition. The Company will shortly commence the listing process with the TSX Venture Exchange with the objective of completing it later in 2020.

 

Posted February 25, 2020

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