Calgary, Alberta--(Newsfile Corp. – July 15, 2020) – Braveheart Resources Inc. (TSXV: BHT, OTCQB:RIINF) ("Braveheart" or the "Company") is pleased to announce that it has entered into a financing facility for up to CDN $8.0 million with Alumina Partners (Ontario) Ltd. (“Alumina”) , an affiliate of New York- based private equity firm Alumina Partners LLC.
The investment agreement provides the Company with an at-will financing facility over a period of 24 months during which the Company can draw down, at its sole discretion, equity private placement tranches of up to $250,000. Each tranche will be composed of units with each unit consisting of one common share and one common share purchase warrant, at discounts between 15 and 25 percent of the closing price of the Company’s shares on the day prior to Braveheart’s drawdown notice to Alumina. The exercise price of the warrants will be at a 25 per cent premium over market at the time of the issuance and the warrants will have a term of 60 months. Each draw down from the facility will be subject to TSX Venture Exchange approval. All securities will be subject to a statutory hold period that expires four months and one day from issuance.
The proceeds from the financing facility will allow the Company to continue with permitting and capital upgrades at its 100% owned Bull River Mine project. The Company plans to advance the Bull River Mine project in a phased approach wherein a surface stockpile of mineralized material will provide the initial feedstock to the upgraded mill facility. The Company’s decision to continue with upgrades to the surface infrastructure and process mineralized material on surface is not based on a comprehensive feasibility study of mineral reserves that would otherwise demonstrate economic viability. There is risk and uncertainty regarding the economic viability of the surface stockpile in terms of tonnage, grade, metal recovery and potential oxidation of the material that was placed on the pile approximately 10 years ago. In order to process the surface stockpile the Company needs to complete capital upgrades on surface including the commissioning of a new substation, installation of a flotation circuit, installation of a filtration circuit and civil works associated with the development of a dry stack tailings storage facility (“TSF”).
“Alumina is excited to support Braveheart as management moves to advance the Bull River Mine project,” said Adi Nahmani, Managing Member of Alumina Partners. “We may be seeing the early innings of a metals super cycle. In seeking opportunities to get more exposure to metals in general and counter-inflationary precious metals in particular, we were impressed by the value proposition that Braveheart brings to the table.”
Ian Berzins, President and CEO stated "I am extremely pleased that, with the support of Alumina, we were able to put this financing facility in place. The facility provides the Company with sufficient funds to complete surface upgrades and continue working with regulatory authorities on re-permitting of the Bull River Mine with a planned ultimate restart of mining and milling operations at the mine in the foreseeable future."
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