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Battery Mineral Resources Announces Proposed Capital Reorganization, Including a Proposed Offering of up to US$6,000,000 in Unsecured Convertible Debentures and Proposed Consolidation of Existing Debt
(NewsDirect) Proceeds from Unsecured Convertible Debentures to Be Applied Towards the Re-St...
About this update from Battery Mineral Resources Corp
[{"type":"text","content":"Battery Mineral Resources Announces Proposed Capital Reorganization, Including a Proposed Offering of up to US$6,000,000 in Unsecured Convertible Debentures and Proposed Consolidation of Existing Debt\n \n \n (NewsDirect)\n \n \n \n Proceeds from\nUnsecured Convertible Debentures to Be Applied Towards the Re-Start of\nProduction at Punitaqui Project, Chile\n \n \n \n \n Consolidation of Existing Debt Expected\nto Benefit BMR’s Balance Sheet Through an Extended Term-to-Maturity,\nInterest Accrual During Ramp-Up of Potential Production, and a\nConversion Option\n \n \n \n Battery Mineral Resources Corp. (\n \n TSXV: BMR\n \n ) (\n \n OTCQB:\nBTRMF\n \n ) (“\n \n Battery\n \n ” or “\n \n BMR\n \n ” or the\n“\n \n Company\n \n ”) is pleased to announce a private placement\noffering (the “\n \n Private Placement\n \n ”) of senior unsecured\nconvertible debentures (the “\n \n Debentures\n \n ”) for total gross\nproceeds of up to US$6 million (approximately C$8.2 million). The\nproceeds from the Debentures will be applied towards working capital\nand the restart of copper concentrate production at its Punitaqui\ncopper project in Chile (the “\n \n Restart\n \n ”).\n \n \n \n \n The Company continues to\nprogress towards securing the balance of the capital required for the\nRestart and anticipates sharing further updates in that respect in the\nfourth quarter of 2023. The Company estimates the total capital\nrequired for the Restart to be approximately US$13 million\n(approximately C$17.8 million) (prior to corporate costs and other\nasset holding costs and inclusive of amounts to be raised in the\nPrivate Placement).\n \n \n \n \n In\nconnection with the Private Placement, the Company is also proposing\nto issue up to US$15.4 million (approximately C$21.0 million) in\nDebentures to its existing debtholders to refinance substantially all\nof the Company’s outstanding indebtedness.\n \n \n \n \n \n Debenture\nOffering\n \n \n \n The\nDebentures will mature on September 30, 2026 (the “\n \n Maturity\nDate\n \n ”) and will bear interest at 10% per annum, compounding\nannually on September 30 of each year, not in advance. Interest\naccrued from the date of issuance and up to and including March 30,\n2025, will be paid by way of is...