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Battery Mineral Resources (TSXV:BMR) upsizes private placement to $10M

Mining, The Market Online Deal Room
TSXV:BMR
01 March 2022 09:00 (EST)

Source: Battery Mineral Resources.

Battery Mineral Resources (BMR) has upsized its previously announced non-brokered private placement of convertible debentures.

The company is now offering debentures resulting in total gross proceeds of up to C$10 million. The offering is now expected to close on or around March 31, 2022, and may close in one or more tranches.

The securities will automatically convert into common shares upon maturity.

The company will use the proceeds to fund an extension of the 2021 exploration drilling program at its Punitaqui copper project in Chile, as well as for general working capital.

Proceeds from the additional $5 million generated will be used to re-commence operations at Punitaqui. The company is currently exploring interest from parties to supply the balance of the cost, estimated at $20 million, via additional and non-dilutive avenues.

Battery CEO Martin Kostuik commented on the offering and the Punitaqui project.

On the heels of recently announced successful drilling results from the extension of our 2021 drilling at Punitaqui, the upsizing of the Debenture offering shows the strong support we have from our current investor base and is directly in line with our intentions of funding Punitaqui into sustainable copper production targeted to begin in the second half of this year.”

Proceeds of this re-start capital will be used to advance early production preparation activities including securing definitive agreements with mine contractors, securing equipment, and for definition drilling to be used for final adjustments to mine designs and production schedules. We look forward to providing further exciting project announcements as we advance toward the 2022 resource update and technical report and the potential near-term resumption of copper concentrate production and cash flow at Punitaqui,” he added.

Battery Mineral Resources is engaged in the discovery, acquisition and development of battery metals in North and South America as well as South Korea.

Battery Mineral Resources (BMR) opened trading at C$0.345 per share.

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