(TSXV: TVC) (OTCQB: TVCCF) Three Valley Copper Corp.
(“
Three Valley Copper” or the
“
Company”) is pleased to report the start of its
Papomono block caving operation at its 95.1% owned Minera Tres
Valles (“
MTV”) property near Salamanca, Region de
Coquimbo, Chile.
Papomono Start of Block Caving Operations
The Company, with the support of MTV’s senior
secured lenders and underground mining contractor, has decided to
start the operations of the Papomono block caving mine while
discussions with its senior secured lenders continue. The start of
operations allows the Company to retain its current mining
contractor with its knowledge and experience of the operations and
avoid the cost of demobilization. The contractor has remained
onsite since operations were halted in January allowing for an
immediate start to block caving operations at Papomono.
The senior secured lenders have reiterated their
continued support of MTV and are working with the Company and MTV
to realize the robust economics from this underground mine. As part
of the decision process to start the block caving operation and at
the request of the senior secured lenders, MTV engaged consultants
to undertake a technical optimization study in respect of Papomono.
Phase one of this study has been completed and it supports the
decision to start the operations of the Papomono block caving
mine.
As a result, the senior secured lenders,
together with the Company, have expressed their intention to
provide $11 million of super senior secured funds to MTV, the
approvals for and terms of which are being finalized. This funding,
if approved, is expected to be drawn down in tranches by MTV
beginning at the end of March 2022 and is expected to fund MTV into
July 2022 providing the Company and the senior secured lenders
additional time to negotiate a longer-term solution for MTV,
including sourcing additional capital that will be required. If
approvals from the respective parties are not obtained and funding
not provided, it is expected that MTV will not have sufficient
funds to operate beyond April 2022. In addition to the $11 million,
the Company estimates that MTV will require at least an additional
$10 million of capital during 2022.
MTV will continue to operate in a limited
capacity during the ramp-up of Papomono by processing third-party
ore. The Company’s review of the Don Gabriel open pit operation
continues, and at the current time, it does not expect that Don
Gabriel will be restarted in 2022. An analysis of Don Gabriel is
ongoing and further information will be disclosed when
available.
As a result of the current financial situation
of MTV and the interruption in its operations, certain defaults of
the senior secured debt facility have occurred and are
continuing. The senior secured lenders have not provided a
notice thereof to MTV and discussions continue to find a
longer-term solution to the financing requirements of MTV.
The Company and MTV continue to preserve their
cash resources during negotiations with MTV’s senior secured
lenders and other creditors and thank all stakeholders for their
continued support and patience.
Joe Phillips, COO, Retirement
Michael Staresinic, CEO of Three Valley Copper
stated, “With his continual focus on execution, Joe has helped lead
MTV to prioritize what is most important to its success, namely,
the completion of the initial construction and development of the
Papomono underground mine. Joe accomplished what he said he was
going to do and after a distinguished career in mining, will be
focusing his next stage of life on family and helping other
companies grow through directorships and advisory positions. We are
grateful for Joe’s hard work and dedication to MTV and are very
pleased he will remain as a director of both Three Valley Copper
and MTV to provide stewardship and important transitional
continuity to the Papomono project as MTV ramps up production from
Papomono.”
Over his 50-year career, Mr. Phillips has
directed the construction, commissioning, and operation of 11
plants and mining operations, all of which met or exceeded their
designed capacities, across 13 countries on 5 continents. He has
held senior executive positions including Chief Operating Officer,
Chief Restructuring Officer, Chief Development Officer, amongst
others, across several US and Canadian mining companies. Mr.
Phillips' retirement will be effective in the spring and a
successor will be announced at a later date.
About Three Valley Copper
Three Valley Copper, headquartered in Toronto,
Ontario, Canada is focused on growing copper production from, and
further exploration of, its primary asset, Minera Tres Valles.
Located in Salamanca, Chile, MTV is 95.1% owned by the Company and
MTV's main assets are the Minera Tres Valles mining complex and its
46,000 hectares of exploratory lands. For more information about
the Company, please visit www.threevalleycopper.com.
Cautionary Statement Regarding Forward-Looking
Information
Certain statements in this news release, contain
forward-looking information (collectively referred to herein as the
"Forward-Looking Statements") within the meaning
of applicable Canadian securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "may", "will",
"project", "should", "believe", "plans", "intends" and similar
expressions are intended to identify Forward-Looking Statements. In
particular, but without limiting the foregoing, this news release
contains Forward-Looking Statements pertaining to: expected cash
flow and capital resources; ability of the Company to continue as a
going concern; ability of MTV to comply with the terms of its
existing debt facility and other material agreements; the potential
outcome of the Strategic Review Process; Company’s expectations for
current and future exploration activities; operating guidance;
development progress of the Company’s mineral projects; statements
with respect to the timing and production of copper at the Don
Gabriel and Papomono sites; advancement of ongoing projects,
including the progress and timing of completion of the inclined
block-caving mining project, the estimated capital costs required
for completion and expectations regarding additional financing.
Although TVC believes that the Forward-Looking
Statements are reasonable, they are not guarantees of future
results, performance or achievements. A number of factors or
assumptions have been used to develop the Forward-Looking
Statements, including: the availability of certain consumables
(including water) and services and the prices for power, sulfuric
acid and other key supplies; expected labour and materials costs
and available supply; certain tax rates, including the allocation
of certain tax attributes, being applicable to MTV; the
availability of financing for the Company's and MTV’s planned
operations and development activities; assumptions made in mineral
resource and mineral reserve estimates and the financial analysis
based on these estimates, including (as applicable), but not
limited to, geological interpretation, grades, commodity price
assumptions, metallurgical performance, extraction and mining
recovery rates, hydrological and hydrogeological assumptions,
capital and operating cost estimates, and general marketing,
political, business and economic conditions, the continued
availability of quality management, critical accounting estimates,
all terms of the restructuring agreement and facility agreement to
which MTV and the Company are parties will be satisfied in the
future including no events of default, existing water supply will
continue, supplemental water availability will continue, the
geopolitical risk of Chile will remain stable, including risks
related to labour disputes, a partial ramp up of mining operations
at Papomono Masivo without sufficient capital support could result
in destabilization of the mine; the litigation and /or arbitration
initiated by the minority shareholder of the Company’s operating
subsidiary, MTV will proceed according to the timeline provided by
litigation counsel; the expected production and results from the
Don Gabriel mine; expected ability to repay the indebtedness of
MTV; and the Company and its senior secured lenders will be able to
successfully finalize the proposed financing.
Actual results, performance or achievements
could vary materially from those expressed or implied by the
Forward-Looking Statements should assumptions underlying the
Forward-Looking Statements prove incorrect or should one or more
risks or other factors materialize, including: (i) possible
variations in grade or recovery rates; (ii) copper price
fluctuations and uncertainties; (iii) delays in obtaining
governmental approvals or financing; (iv) risks associated with the
mining industry in general (e.g., operational risks in development,
exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the
uncertainty of estimates and projections relating to mineral
reserves, production, costs and expenses; and labour, health,
safety and environmental risks) and risks associated with the other
portfolio companies' industries in general; (v) performance of the
counterparty to the ENAMI Contract; (vi) risks associated with
investments in emerging markets; (vii) general economic, market and
business conditions; (viii) market volatility that would affect the
ability to enter or exit investments; (ix) failure to secure
additional financing in the future on acceptable terms to the
Company, if at all; (x) commodity price and foreign exchange
fluctuations and uncertainties; (xi) risks associated with
catastrophic events, manmade disasters, terrorist attacks, wars and
other conflicts, or an outbreak of a public health pandemic or
other public health crises, including COVID-19; (xii) those risks
disclosed under the heading "Risk Management" in TVC’s Management’s
Discussion and Analysis for the period ended December 31, 2020; and
(xiii) those risks disclosed under the heading "Risk Factors" or
incorporated by reference into TVC’s Annual Information Form dated
March 3, 2021. The Forward-Looking Statements speak only as of the
date hereof, unless otherwise specifically noted, and the Company
does not assume any obligation to publicly update any
Forward-Looking Statements, whether as a result of new information,
future events or otherwise, except as may be expressly required by
applicable Canadian securities laws.
Cautionary Note to United States
Investors Concerning Estimates of measured, indicated and inferred
mineral resources
This news release may use the terms "measured",
"indicated" and "inferred" mineral resources. Historically, while
such terms were recognized and required by Canadian regulations,
they were not recognized by the United States Securities and
Exchange Commission (the “SEC”). The SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC under the Securities and Exchange Act of
1934, as amended (the “Exchange Act”). These
amendments became effective February 25, 2019 (the “SEC
Modernization Rules”) with compliance required for the
first fiscal year beginning on or after January 1, 2021. The SEC
Modernization Rules replace the historical property disclosure
requirements for mining registrants that were included in SEC
Industry Guide 7, which will be rescinded from and after the
required compliance date of the SEC Modernization Rules. As a
result of the adoption of the SEC Modernization Rules, the SEC now
recognizes estimates of “measured”, “indicated” and “inferred”
mineral resources. In addition, the SEC has amended its definitions
of “proven mineral reserves” and “probable mineral reserves” to be
substantially similar to the corresponding Canadian Institute of
Mining, Metallurgy and Petroleum definitions, as required by NI
43-101. Investors are cautioned that "Inferred mineral resources"
have a great amount of uncertainty as to their existence, and as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or other
economic studies. United States investors are cautioned not to
assume that all or any part of measured or indicated mineral
resources will ever be converted into mineral reserves. United
States investors are also cautioned not to assume that all or any
part of an inferred mineral resource exists or is economically or
legally mineable.
For further information:
Michael StaresinicPresident and Chief Executive
OfficerT: (416) 943-7107E: mstaresinic@threevalleycopper.com
Renmark Financial Communications Inc.Joshua
Lavers: jlavers@renmarkfinancial.comT: (416) 644-2020 or (212)
812-7680www.renmarkfinancial.com
Source: Three Valley Copper Corp.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Three Valley Copper (TSXV:TVC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Three Valley Copper (TSXV:TVC)
Historical Stock Chart
From Jul 2023 to Jul 2024