Battery Mineral Resources Corp. (OTC: BTRMF) Stock in Focus After Financial Arrangements for the Restart of Production at Punitaqui
One of the companies to have made a major new announcement on Monday was Battery Mineral Resources Corp. (OTC: BTRMF), and it may be a good move for investors to take a closer look. The company announced that ESI Energy Services Inc., its fully owned subsidiary unit, had entered into a credit agreement worth C$8,000,000 with the Fiera Enhanced Private Debt Fund. In the news release yesterday, it was also noted that ESI Energy had already drawn its first advance to the tune of C$5,000,000 as per the provisions of the credit agreement.
If some specific conditions are satisfied, then ESI Energy would be able to draw an advance for the rest of the amount before May 15, 2024. The net proceeds from the credit agreement would be distributed to Battery Mineral Resources Corp. by ESI Energy. The financing would be used for recommencing the copper concentrate production at the Punitaqui Project, located in Chile.
In the news release, it was also noted that the work related to the hiring of personnel for the restarting of the above-mentioned project was on schedule. The loan provided to the company under the auspices of the credit agreement would carry interest at a floating prime rate. Additionally, there would also be an applicable margin, and the loan would mature three years from the date of issuance.
It was revealed that ESI Energy would need to make payments on a monthly basis towards the principal on the basis of a seven-month amortization schedule. The payment obligations would be met by ESI Energy from its operating cash flows, and some of them would also come from the operations of Ozzie’s Inc., its fully owned subsidiary unit. In fact, Ozzie’s had also provided guarantees for the obligations in the credit agreement that ESI Energy signed.
