Battery Mineral Resources acquires Punitaqui mine in Chile

Battery Mineral Resources Corp. has provided an update regarding business activities and outline steps towards potential near term cash generation. The recently acquired Punitaqui mine in Chile is slated for resumption of copper production in mid to late-2022.

Battery MR is an investor focused company with high-quality assets providing shareholder exposure to the global mega-trend of electrification via our assets and the commodities they represent – namely cobalt, graphite, lithium and copper. BMR is determined to provide value growth through cash-flow, exploration and acquisitions in top mining jurisdictions.

Punitaqui is a former producing copper mine located in the Coquimbo region of Chile with an eight-plus year operating history within which it produced up to 25 million pounds of copper in concentrate annually. Punitaqui was recently acquired by BMR via a private placement equity financing announced on July 13, 2021. BMR began developing the project immediately by initiating a drilling program, operating as well as environmental permit modifications and engineering studies.

Battery MR is continuing its efforts to build on its prior success of outlining a new high-grade cobalt resource at its McAra property near the town of Cobalt, Ontario. This resource was announced on April 22, 2021, and defines an NI 43-101 compliant Measured and Indicated resource of 1,124,000lbs Co-Eq that includes 1,102,000 pounds of cobalt. On the heels of two successful flow through financings which raised an aggregate gross proceeds of $2,306,800, BMR is initiating a winter drilling program designed to follow up on three prior successful cobalt drilling campaigns. In addition to the recent achievements at McAra, Battery has designed drill programs intended to build on prior successes at the Fabre property with drill intercept values such as 1.3 meters of 1.6% cobalt and at Bald Rock with values such as 3.0 meters of 0.6% cobalt. Drilling has commenced at Fabre and will follow with Bald Rock and McAra in the coming months, with results expected in Q1 2022.

In order to support ongoing development efforts in Chile and Ontario, BMR also announces that it has, through ESI Energy Services Inc. – a BMR subsidiary company – entered into a loan agreement with USMT 18 LLC for a secured loan (the “Loan”) in the amount of US$1,200,000. The Loan is repayable one year from closing with an option to extend for an additional one year and bears interest at a rate of 8.5% per annum, with interest payable monthly. In addition, a 1.5% origination fee and a 2% exit fee is payable in connection with the Loan. In the event the loan is repaid prior to June 30, 2022, yield maintenance will be payable by the borrower through June 30, 2022. The Loan will be secured by certain real property owned by two subsidiaries of Battery, including the borrower.

On the heels of some very positive drill results at the Punitaqui mine site, this non-dilutive financing allows BMR to keep up the pace and activity to move this project to full production as soon as possible in 2022.

Battery MR CEO, Martin Kostuik, states: “There are very few companies around the world that have the opportunity to transition from development into potential resumption of copper in the second half of 2022 and we are thrilled be one of them. Our recent acquisition of the former producing Punitaqui copper mine in Chile will give our investors an opportunity to participate in a potentially significant re-rating in BMR’s valuation as we transition from development to operations and positive cash-flowing. The development of Punitaqui towards a restart is progressing well on all fronts such as drilling, engineering and permit modifications and we look forward to presenting the restart plan for the mine in Q1 2022. We look forward to providing further exciting updates as we progress towards a potential near term resumption of operations and cashflow at Punitaqui”.

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