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Battery Mineral Resources Announces up to C$7 Million in Royalty Financing
Definitive Agreement Signed with Electric Royalties, Raising C$3.5 Million in Financing via Sale ...
About this update from Electric Royalties Ltd.
[{"type":"text","content":"Battery Mineral Resources Announces up to C$7 Million in Royalty FinancingDefinitive Agreement Signed with Electric Royalties, Raising C$3.5 Million in Financing via Sale of Non-Dilutive Royalty on Its Punitaqui Copper Mine in Chile; Commitments Obtained from Additional Investors for up to an Incremental C$3.5 Million in Royalty FinancingVancouver, British Columbia--(Newsfile Corp. - November 25, 2024) - Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) (\"Battery\" or \"BMR\" or the \"Company\") is pleased to announce that the Company has entered into a definitive agreement with Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF) (\"Electric Royalties\"), to sell a 0.75% Gross Revenue Royalty (the \"GRR\") on its producing Punitaqui copper mine in Chile (the \"Project\" or \"Punitaqui\") in exchange for cash consideration of C$3,500,000 (the \"Electric Transaction\"). The Company has also received indications of interest for up to an incremental C$3,500,000 in royalty financing via sale of an additional 0.75% GRR, which, if closed, would bring the total gross proceeds up to C$7,000,000 via the sale of an aggregate 1.50% GRR. Any incremental royalty financing would be expected to close before December 31, 2024 and, if consummated, will be announced in a subsequent news release by the Company.Martin Kostuik, Chief Executive Officer, stated, \"This additional capital will enable Battery to further increase fresh mine feed production and milling at the Punitaqui project, as well as accelerate mining activities by establishing access to the mineralized zones at Cinabrio and San Andres and driving access towards Cinabrio Norte. Since the restart of mining and milling last May, the timeline from first fresh mine feed through the mill to full planned mill capacity is expected to take approximately nine months, reaching a run rate of approximately 90,000 tonnes per month of fresh and third party mill feed. We are working towards a full annual copper production rate at Punitaqui in the range of 19 million to 23 million pounds of copper in concentrate.\"Max Satel, Chief Financial Officer, added, \"The sale of a modest GRR on the Punitaqui project represents a creative and non-dilutive form of financing, continuing our track record of preserving shareholder value during the challenging equity market conditions currently faced by m...