VANCOUVER, Feb. 25, 2020 /CNW Telbec/ - BatteryOne
Royalty Corp. ("BatteryOne" or the
"Company") is pleased to announce that it has sold
11,693,172 special warrants ("Special Warrants") for
aggregate gross proceeds of C$5,846,586 by way of non-brokered private
placement (the "Closing").
Alex Tsukernik, President and
Chief Executive Officer of BatteryOne commented: "We are very
pleased to see the strong investor demand on the financing and
positive response to our acquisition of the NuevaUnion royalty.
This transaction now positions BatteryOne as the premier
copper/nickel focused royalty player, which we plan to take public
this year."
A total of approximately C$3.0mm
(US$2.25mm) from the Closing was used
as an initial payment on a 2.0% net smelter royalty ("NSR")
on future copper production on the Cantarito claim of the La
Fortuna deposit ("La Fortuna Deposit") within the NuevaUnion
project, a 50-50 joint venture between Teck Resources Limited and
Newmont Corporation (see the Company's news release dated
February 18, 2020). The Company will
make a further payment of approximately C$1.0mm (US$0.75mm)
in 12 months to complete its payment obligations prior to the start
of commercial production from the royalty area. The balance of the
proceeds from the Closing will be used for further royalty
acquisitions and for general and administrative purposes. The
Company intends to go public by way of filing a non-offering
prospectus and apply to list its common shares on the TSX Venture
Exchange, subject to exchange listing requirements.
Each Special Warrant had a subscription price of $0.50 and will be deemed exercised into one unit
of the Company (a "Unit"), for no additional consideration,
on the earlier of (i) becoming a reporting issuer and obtaining a
listing of the common shares of the Company (the "Common
Shares") on a recognized stock exchange in Canada; (ii) a transaction that provides
holders of the Special Warrants with comparable liquidity; or (iii)
the date that is four months and one day following the Closing.
Each Unit consists of one Common Share and one-half of one Common
Share purchase warrant (a "Warrant"). Each Warrant shall
entitle the holder thereof to purchase one Common Share (a
"Warrant Share") at an exercise price of C$1.00 at any time up to 24 months following the
Closing (the "Expiry Date"). In the event the closing price
for the Common Shares is C$1.25 or
above on the exchange on which the Common Shares trade, for a
period of 20 consecutive trading days, the Company may, at its
option, accelerate the Expiry Date notifying the holders of the
Warrants with the issuance of a press release announcing such
acceleration (the "Acceleration Press Release"). In this
case, the Expiry Date shall be deemed to be the 30th day following
the date of issuance of the Acceleration Press Release.
NUEVAUNION UPDATE
Subsequent to the Company completing its acquisition of the NSR,
The Mining Journal and Mining.com reported on February 20, 2020 that Newmont Corporation (NYSE:
NEM, TSX: NGT) and Teck Resources Limited (TSX:TCK.A & TCK.B)
(NYSE:TCK) are investing US$152mm into the NuevaUnion project to
focus on drilling the deep extensions of the La Fortuna Deposit.
Based on an evaluation request filed with Chile's environmental evaluation service
(SEA), the property owners reportedly plan to conduct two drilling
campaigns, totaling up to 176 holes, with the objective of
characterizing the deposit at depth, and laying the foundations for
the development of a mining plan focused on La Fortuna Deposit's
deep levels.
The Cantarito claim on which BatteryOne is entitled to a 2% NSR
on all copper production, is one of the four main areas
historically explored at the La Fortuna Deposit, and sits
immediately adjacent to the largest area, La Fortuna. The La
Fortuna – Cantarito area comprises the largest hydrothermal
alteration system of the La Fortuna Deposit, with a quartz-sericite
alteration in excess of 1.2 squared kilometers. Based on an
optimized pit-shell at commodity prices of $2.25/lb copper and $950/oz gold, Cantarito accounts for
approximately 8% of the resource tonnes of the La Fortuna
Deposit.
ABOUT BATTERYONE
BatteryOne is a private royalty company focused on gaining
exposure to the world's premier copper and nickel deposits, that
will be required for the electric energy transition. The Company
will shortly commence the listing process with the TSX Venture
Exchange with the objective of completing it later in 2020.
ON BEHALF OF BATTERYONE ROYALTY CORP.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities legislation. The forward-looking statements herein are
made as of the date of this press release only, and the Company
does not assume any obligation to update or revise them to reflect
new information, estimates or opinions, future events or results or
otherwise, except as required by applicable law. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budgets",
"scheduled", "estimates", "forecasts", "predicts", "projects",
"intends", "targets", "aims", "anticipates" or "believes" or
variations (including negative variations) of such words and
phrases or may be identified by statements to the effect that
certain actions "may", "could", "should", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking information
in this press release includes, but is not limited to, statements
with respect to future events or future performance of BatteryOne,
the use of proceeds, the filing of a prospectus, the listing of
common shares on the TSX Venture Exchange, exploration potential
and budget at La Fortuna and the Cantarito claim, statements with
respect to future events or future performance of BatteryOne,
management's expectations regarding BatteryOne's growth.
Forward-looking statements and information are subject to various
known and unknown risks and uncertainties, many of which are beyond
the ability of BatteryOne to control or predict, that may cause
BatteryOne's actual results, performance or achievements to be
materially different from those expressed or implied thereby, and
are developed based on assumptions about such risks, uncertainties
and other factors set out herein, including but not limited to the
requirement for regulatory approvals and third party consents
including approval of the Prospectus and for the listing of the
Common Shares, the impact of general business and economic
conditions, the absence of control over the mining operations from
which BatteryOne will purchase and receive royalties, including
risks related to international operations, government relations and
environmental regulation, the inherent risks involved in the
exploration and development of mineral properties; the
uncertainties involved in interpreting exploration data; the
potential for delays in exploration or development activities; the
geology, grade and continuity of mineral deposits; the possibility
that future exploration, development or mining results will not be
consistent with BatteryOne's expectations; accidents, equipment
breakdowns, title matters, labor disputes or other unanticipated
difficulties or interruptions in operations; fluctuating metal
prices; unanticipated costs and expenses; uncertainties relating to
the availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; currency fluctuations; regulatory restrictions,
including environmental regulatory restrictions; liability,
competition, loss of key employees and other related risks and
uncertainties. BatteryOne undertakes no obligation to update
forward-looking information except as required by applicable law.
Such forward-looking information represents management's best
judgment based on information currently available. No
forward-looking statement can be guaranteed and actual future
results may vary materially. Accordingly, readers are advised not
to place undue reliance on forward-looking statements or
information.
Website: www.batteryoneroyalty.com
SOURCE BatteryOne Royalty Corp.