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Battery Mineral Resources Corp. Raises C$4.0 Million Through Sale-Leaseback Transaction of Industrial Property Held by Subsidiary
Vancouver, British Columbia--(Newsfile Corp. - June 13, 2022) - Battery Mineral Resources Corp...
About this update from Battery Mineral Resources Corp
[{"type":"text","content":"Battery Mineral Resources Corp. Raises C$4.0 Million Through Sale-Leaseback Transaction of Industrial Property Held by SubsidiaryVancouver, British Columbia--(Newsfile Corp. - June 13, 2022) - Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) (\"Battery\" or \"BMR\" or the \"Company\") is pleased to announce that it has closed a non-dilutive sale-leaseback transaction on an industrial property located at 7102 West Sherman Street, Phoenix, Arizona (the \"Property\"), previously held by Ozzie's, Inc. (\"Ozzie's\"), the Company's U.S. subsidiary of BMR's 100%-owned ESI Energy Services, Inc, which operates in the equipment rental and sales sector of the pipeline and renewable energy space (the \"Transaction\"). The Transaction raised proceeds of approximately C$4.0 million, after the repayment of all indebtedness on the Property and the payment of transaction costs, but prior to the payment of estimated taxes on the disposition of the Property. Proceeds from the Transaction will be applied to re-commence operations at the Company's Punitaqui Mining Complex, a past copper-gold producing mine located in the Coquimbo region of Chile. The Company is currently exploring interest from parties to supply the balance of the cost, estimated at C$20 million, via additional and non-dilutive avenues.Battery CEO Martin Kostuik states: \"We are very pleased to announce the closing of the sale-leaseback transaction for the West Sherman Street property. The transaction represents a creative, non-dilutive means for BMR to raise capital, which we will apply in the near-term towards preparing for operations at Punitaqui. We look forward to sharing ongoing updates with the market on additional financing initiatives and other key milestones, as we advance towards restarting mine operations followed by copper production and generating positive cash-flow at Punitaqui.\"As part of the Transaction, Ozzie's has entered into a lease agreement on the Property (the \"Lease Agreement\") with the purchaser of the Property. Ozzie's shall lease the Property for a term of 60 months at an initial lease rate of approximately US$26,200 per month, to be paid from Ozzie's cash flows. The taxes payable by Ozzie's on the proceeds from the Transaction are estimated to be approximately C$0.5 million and shall be paid by Ozzie's following the filing of tax returns for...