Battery Mineral Resources Corp. (TSXV: BMR) has finalized the first closing of a non-brokered private placement. The transaction involved the issuance of 77,294,125 common shares priced at C$0.20 per share, generating C$15,458,825 in gross proceeds. The capital raise is intended to underpin ongoing work at the company’s Punitaqui copper mining complex in Chile, as well as to provide working capital and support other corporate requirements.
Key terms of the placement
The placement was executed without a broker and relied on exemptions from the prospectus-mandated filing under Canadian securities legislation and the registration obligations of the United States Securities Act of 1933. An arm’s-length service provider, EAS Advisors LLC, acting through Odeon Capital Group, LLC, received a cash commission of C$221,400 for its role, a payment that complies with TSXV policies and applicable securities regulations.
Use of proceeds and regulatory compliance
Net proceeds from the offering will be allocated to three primary areas: (1) continued operations and development at the Punitaqui copper-gold-silver complex in the Coquimbo region of Chile, (2) reinforcement of the company’s working capital position, and (3) general corporate purposes. All shares issued are subject to a statutory hold period of four months and one day as prescribed by Canadian securities law, after which they may be freely traded pending final acceptance by the TSXV.
Insider participation and related-party considerations
An insider of Battery Mineral Resources subscribed for 50,090,500 shares in the placement. Under TSXV Policy 5.9 and Multilateral Instrument MI 61-101, this subscription qualifies as a “related party transaction.” The company invoked Sections 5.5(a) and 5.7(a) of MI 61-101 to waive the formal valuation and minority-shareholder approval requirements, demonstrating that the transaction does not exceed 25 % of the company’s market capitalisation. A material change report was not filed more than 21 days before closing because the insider’s commitment was finalised close to the closing date, and the company sought to complete the financing promptly for operational reasons.
Company background
Battery Mineral Resources owns and operates the historic Punitaqui mining complex, a source of copper, gold and silver in Chile’s Coquimbo region. The corporate portfolio also includes the wholly-owned ESI Energy Services Inc. and several North American mineral exploration assets. The firm’s strategic focus is to provide shareholders with exposure to copper, a metal central to the global electrification trend, while pursuing growth through cash flow generation, exploration and acquisitions in jurisdictions favorable to mining.
For further information, interested parties may contact the company’s chief executive, Lazaros Nikeas, at +1 (672) 887-5010 or via email at info@. The TSX Venture Exchange does not assume responsibility for the accuracy or adequacy of this announcement.
