Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) has completed the initial closing of its non-brokered private placement, raising gross proceeds of C$15,458,825 through the issuance of 77,294,125 common shares at C$0.20 per share. The company intends to direct the net proceeds toward ongoing operations and development at its Punitaqui copper mining complex in Chile. The raise is notable for significant insider participation, with one insider subscribing for more than 50 million shares. The Offering remains subject to final acceptance by the TSX Venture Exchange.

Key Points

  • Battery Mineral Resources Corp. (TSXV: BMR | OTCQB: BTRMF) completed the initial closing of its non-brokered private placement
  • 77,294,125 common shares were issued at C$0.20 per share for gross proceeds of C$15,458,825
  • An insider subscribed for 50,090,500 shares, constituting a related-party transaction under applicable exchange policies
  • Investors may watch for final TSXV acceptance and any further tranches of the Offering

Proceeds Earmarked for Punitaqui Copper Complex in Chile

Battery Mineral Resources has stated it will apply the net proceeds of the private placement to support ongoing operations and development activities at its Punitaqui Mining Complex, a historic copper, gold, and silver-producing operation situated in the Coquimbo region of Chile. The company also indicated that funds will be used for working capital and general corporate purposes. The Punitaqui complex is central to BMR's strategy of providing shareholders with exposure to copper and the broader global electrification trend.

Finder's Fee Paid to EAS Advisors in Connection with the Offering

In connection with the initial closing, the company paid a cash commission of C$221,400 to EAS Advisors LLC, acting through Odeon Capital Group LLC, described in the release as an arm's length party. The payment was made in compliance with applicable securities laws and TSXV policies. All securities issued under the Offering are subject to a statutory hold period expiring four months and one day following the closing date, in accordance with Canadian securities laws.

Insider Participation Triggers Related-Party Transaction Disclosure

An insider of Battery Mineral Resources subscribed for 50,090,500 shares under the Offering, which the company has classified as a related-party transaction under TSXV Policy 5.9 and Multilateral Instrument 61-101. BMR disclosed that it is exempt from formal valuation and minority shareholder approval requirements, as the fair market value of the insider's participation does not exceed 25% of the company's market capitalisation. The company also noted that a material change report was not filed more than 21 days before closing because the insider's participation was not finalised until closer to the closing date.