Vancouver, British Columbia--(Newsfile Corp. - September 9, 2024) - Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) ("Battery" or "BMR" or the "Company") is pleased to announce the third shipment of copper concentrates produced at its mineral processing facility at Punitaqui, Chile.
The Company supplied 1,198 dry metric tonnes ("DMT") of copper concentrates in the month of August. 351 DMT were delivered to Anglo's Chagres smelter in Catemu, Chile and are related to the Offtake Agreement (or the "Agreement") with Anglo American Sur S.A. ("Anglo" or "Anglo American"), a division of Anglo-American PLC. The copper concentrates were from copper smelting by-products (slags) supplied to BMR by Anglo. The balance, being 847 DMT, were produced from Battery's own Punitaqui mine operations and were sold to Ocean Partners Chile SpA and delivered to Terminal Portuario de Coquimbo (TPC) to be exported. TPC is a major export and import point in Chile, handling a significant amount of the copper concentrates produced within the country, and is located approximately 130 kilometers from the mine by paved road with year-round access.
All of the copper concentrates in the month of August were produced at BMR's Punitaqui copper flotation plant and contained a weighted average of 23.91 percent copper, for approximately 631,400 pounds of copper in concentrate.
Martin Kostuik, Chief Executive Officer, stated, "This third shipment of copper concentrate marks another significant milestone for Battery Minerals, with 847 DMT sourced from our own Punitaqui mine operations. We are progressing well on ramping up material sourced from the Punitaqui mines and continuing to find new opportunities for additional third-party mill feed. We look forward to persistently increasing value to stakeholders through growing cash flows from copper sales."
Since the May commissioning of the recently refurbished and upgraded mineral processing facility at Punitaqui, the Company has shipped 2,453 DMT, for a total of over 1,326,000 pounds of copper in concentrate, to date. The Company is progressing steadily to bolster production results with a goal of delivering approximately 1,400 DMT per month in the near term and reaching up to 2,800 DMT of copper concentrate production per month by year-end.
Mining activities are focussed on establishing access to the mineralized zones in both Cinabrio and San Andres. Activities continue to ramp up with both mines providing increasing amounts of stockpiles containing fresh mill feed. Cinabrio is the original mine that supplied mill feed for the first 10 years of prior operations, primarily operated by Glencore PLC.
Third Party Mineral Processing Agreement
The Company has engaged with Minera CEMIN-Pullalli SpA ("Minera CEMIN"), Minera CEMIN is a medium-sized mining company dedicated primarily to the extraction of oxide copper materials and production of copper and gold in Chile. Created in 1982, it has operations in Catemu, Pullally and Domeyko. Battery will purchase approximately 5,000 tonnes per month of sulphide copper mill feed from their Catemu processing plant, for a period of five months, as of the effective date of August 23rd, 2024. This mineral purchase agreement is strategic in the sense that it provides a ready outlet for Minera CEMIN's sulphide ore production while helping to fulfill the Company's goal of enhancing copper concentrate production and sales while the Punitaqui mines continue to ramp up to full production.
Further Disclosure
On August 16th, 2024 the Company announced that, on June 26, 2024, the Company was advanced a loan (the "Loan") in the amount of US$750,000 (approximately C$1,028,625) by Weston Energy II LLC ("Weston II"), a portfolio company operated by Yorktown Partners LLC and an existing shareholder of the Company. The Loan matures on December 5th, 2024, and accrues interest at a rate per annum equal to eight percent (8%). The Loan is unsecured and no bonus securities were issued for the Loan. The proceeds from the Loan will be applied towards the operations at the Company's Punitaqui copper project in Chile.
The Loan is 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 1.3715, the exchange rate published by the Bank of Canada on August 15, 2024.
MI 61-101 Matters
Weston II is 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 II 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 59.44% and 70.94%, respectively, of the outstanding BMR Common Shares).
The Loan constitutes a "related party transaction" for the purposes of MI 61-101. The Loan is exempt from the formal valuation requirements of MI 6-101 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 Loan is further exempt from the minority shareholder approval requirements of MI 61-101 by virtue of the value of the Loan constituting less than 25% of the market capitalization of the Company, and being less than $2,500,000 in any case (as set forth in Sections 5.7(1)(a) and 5.7(1)(b) of MI 61-101).
About Battery Mineral Resources Corp.
Battery Mineral Resources' 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. Battery Mineral Resources is unique because it leverages the inherent value from its 100% owned subsidiary, ESI Energy Services Inc., a renewable energy equipment rental and sales company. The Company's portfolio also consists of two cobalt assets and one lithium asset located in North America and two graphite assets in South Korea. The Company is focused on providing shareholders accretive exposure to copper and the global mega-trend of electrification while being focused on growth through cash-flow, exploration, and acquisitions in favorable mining jurisdictions.
For more information about Battery Minerals, please visit our website at https://bmrcorp.com/, or email us at info@bmrcorp.com.
Martin Kostuik, CEO
Twitter: @BMRcorp_
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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 Canadian securities legislation. 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. 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/222568
SOURCE: Battery Mineral Resources Corp.
