Calgary, Alberta--(Newsfile Corp. – March 17, 2021) – Braveheart Resources Inc. (TSXV: BHT) (OTCQB:RIINF) ("Braveheart" or the "Company") is pleased to announce that it has entered into a Concentrate Purchase Agreement (the “Agreement”) with Ocean Partners UK Ltd. (“Ocean”) for the sale of its copper concentrates (with gold and silver credits) from its Bull River Mine (“Bull River”) near Cranbrook, British Columbia. Additionally, Ocean has agreed to provide the Company with a Pre-Payment Financing Facility (the “Facility”) against initial proceeds from milling of mineralized material on surface.
The Agreement shall remain in force until Braveheart has delivered 45,000 wet metric tonnes of copper concentrate. Ocean shall have a right of first refusal (the “ROFR”) on any remaining production thereafter from Bull River. All other terms and conditions of the Agreement are confidential between the parties. The Facility provides Braveheart with access to up to USD $3,500,000 which can be used for capital expenditures at Bull River including plant commissioning and general working capital purposes. Interest on any amounts drawn from the Facility is at 12-month LIBOR plus 8.75%. The Facility will be treated pari-passu with Braveheart’s current secured loan facility with Matlock Farms Inc. Any monies drawn on the Facility will be repaid as a flat deduction per dry metric tonne of concentrate produced. Braveheart may initially draw up to USD $1,000,000 on closing of the Facility less an arrangement fee and expenses associated with due diligence and legal fees. Subsequent draws will be subject to the Company meeting certain conditions precedent including receipt of an operating permit to dispose of tailings, completion of an equity raise to cover any remaining capital requirements to bring Bull River into production and commencement of milling of the surface stockpile. The Facility is closed and the first draw is available subject to security registration.
The Company plans to advance Bull River in a phased approach wherein a surface stockpile of mineralized material will provide the initial feedstock to the upgraded mill facility. Subsequently, the Company plans to mine and mill mineralized material from the underground workings. The Company’s decision to continue with upgrades to the surface infrastructure, process mineralized material from the surface stockpile and mine from the underground workings 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 mineralized material in the surface stockpile and in the underground resource in terms of tonnage, grade, recovery and potential oxidation of the material that was placed on the surface 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 or filtered tailings storage facility (“TSF”).
Ian Berzins, President and CEO commented: “Braveheart’s top priority is restarting Bull River. With the support of Ocean’s Facility, we are positioned to continue with the surface up-grades required to place the mill in position to process mineralized material later this year. The Agreement for sale of concentrates provides us with certainty on the sale of products from the mine.”
Braveheart’s disclosure of a technical or scientific nature in this news release has been reviewed and approved by Ian Berzins P.Eng., who serves as President, Chief Executive Officer and a director of the Company and is a Qualified Person under the definition of National Instrument 43-101.
About Braveheart Resources Inc.
Braveheart is a Canadian based junior mining company focused on building shareholder value through exploration and development in favourable Canadian mining jurisdictions at or near past-producing properties. Braveheart's main asset is the 100% owned Bull River Mine project near Cranbrook, British Columbia which has a current Mineral Resource containing copper, gold and silver. Braveheart’s newest acquisition is the 100% owned Thierry Mine project near Pickle Lake, Ontario containing copper, nickel, silver, palladium, platinum and gold. Braveheart also has an option to purchase the Alpine Gold project near Nelson, British Columbia.
Braveheart Resources Inc.
President & Chief Executive Officer
For more investor information, please contact Braveheart at:
O: +1-647-725-3888 Ext 702
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, future work programs and objectives and expected results from such work programs. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and other risks.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information and the risks identified in the Company's continuous disclosure record. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.