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Battery Mineral Resources Corp. Updates Announcement to Acquire Punitaqui Copper-Gold Mine and Concurrent Financing of up to C$15,000,000
Vancouver, British Columbia--(Newsfile Corp. - May 4, 2021) - Battery Mineral Resources Corp. ...
About this update from Battery Mineral Resources Corp
[{"type":"text","content":"Battery Mineral Resources Corp. Updates Announcement to Acquire Punitaqui Copper-Gold Mine and Concurrent Financing of up to C$15,000,000Vancouver, British Columbia--(Newsfile Corp. - May 4, 2021) - Battery Mineral Resources Corp. (TSXV: BMR) (\"Battery\" or the \"Company\") is pleased to announce that its previously announced concurrent financing and agreement to acquire the Punitaqui Mining Complex, a copper-gold mine located in the Coquimbo region of Chile (the \"Punitaqui Acquisition\"), is entering its final stages. As previously announced (see press release March 8, 2021), the Company, and its wholly-owned subsidiary Minera BMR SpA, has entered into an agreement with Minera Altos de Punitaqui Limitada (\"MAP\"), a wholly-owned subsidiary of Xiana Mining Inc. (\"Xiana\"), to acquire the Punitaqui mining complex, a copper-gold mine located in the Coquimbo region of Chile. In connection with the Punitaqui Acquisition, the Company will acquire from Bluequest Resources AG (\"Bluequest\") all of Bluequest's interest in secured loan obligations with a principal amount of US$10,000,000 owed by Xiana to Bluequest (the \"Xiana Indebtedness\") and all associated rights, including Bluequest's security interest in MAP and the Punitaqui Mine Complex. Acquiring the Xiana Indebtedness and the associated security will enable the Company to acquire its leasehold interest in the Punitaqui Mine free and clear of the prior claims of any third party secured creditors. In consideration for the Xiana Indebtedness, the Company will (i) issue 10,000,000 Common Shares to Bluequest at an issue price of US$0.50 or C$0.65 per Common Share and (ii) pay up to US$5,000,000 of additional payments on achievement of certain production milestones at the Punitaqui Mine, with each milestone payment to be satisfied, at the election of Bluequest, by the payment of cash, the issuance of Common Shares at prevailing market prices (subject to a minimum issues price of C$0.41), or a combination of both.Concurrent with entering into the Punitaqui Acquisition with MAP, Battery commenced a brokered, private placement equity financing (the \"Private Placement\") of up to C$15,000,000 in common shares of the Company (\"Common Shares\") at a price of C$0.65 per share. Battery intends to use the proceeds of the Private Placement to: partially finance the Punitaqui Acquisitio...