Three Valley Copper announces commitment to senior debt forbearance agreement
/ NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISTRIBUTION, PUBLICATION, DISTRIBUTION OR
DIRECT OR INDIRECT DISTRIBUTION, IN WHOLE OR IN PART, IN THE UNITED STATES.
TORONTO, Nov. 22, 2021 (GLOBE NEWSWIRE) – (TSXV: TVC) Three Valley Copper Corp. (“Copper from the Three Valleys“or the”Society“) announces that an engagement (the”Business“) has been entered into between the Company and the Senior Secured Lenders (the”Lenders”) By Minera Tres Valles (“MTV”), The Company’s 91.1% -owned principal asset located near Salamanca, in the Coquimbo region, Chile.
The Company, as well as its direct and indirect wholly owned subsidiaries, including MTV, and the lenders (together, the “Parties”) Have undertaken to sign a binding final agreement no later than September 30, 2022, to revise the loan repayment schedule as defined in the loan facility agreement, as amended and updated by the agreement amendment and restatement dated November 5, 2020 (the “Ease Agreement“).
Pursuant to the terms of the Undertaking, the Lenders have agreed not to expedite or enforce their rights or remedies under the Credit Agreement if MTV fails (i) to make the scheduled loan repayments on March 31, 2022, June 2022 and September 30, 2022 and / or (ii) replenish the operating reserve account to restore the minimum reserve as required under the facility agreement (each, a “Specified default event“). Under the terms of the Undertaking, the abstention period is from November 22, 2021 to October 1, 2022 (the “Abstention period“).
This commitment also provides that the proceeds of the recently announced bought deal financing of Cdn $ 16 million (the “Offer“) will not be used to repay any of the loans outstanding under the credit agreement during the forbearance period. The Lenders will cease to be bound by the Undertaking if the Company does not invest the net proceeds of the Offer in MTV between the closing of the Offer and April 30, 2022, if an event of default arises under the Facility Agreement other than a Specified Event of Default or if the Parties fail to reach an agreement final by September 30, 2022, under which the loan repayment schedule in the Facility Agreement is revised.The Company expects the placement to end on or around November 25, 2021.
“Our major lenders continue to partner with us,” said Michael Staresinic, President and CEO. “This is an important first step in restructuring MTV’s debt obligations to improve MTV’s cash flow in 2022 as we complete the development of the Papomono mine. and increase production in 2022. Papomono is nearing completion and we are on schedule to complete our first ore caving in January 2022.
The Company will provide an update when further disclosure is required or otherwise appropriate.
A copy of the pledge will be available under the company profile at www.sedar.com.
About Three Valley Copper
Three Valley Copper, headquartered in Toronto, Ontario, Canada, is focused on growing copper production from its core asset, Minera Tres Valles, and further exploration of it. this. Based in Salamanca, Chile, MTV is 91.1% owned by the Company and MTV’s main assets are the Minera Tres Valles mining complex and its 46,000 hectares of exploration land. For more information about the company, please visit www.threevalleycopper.com.
Caution regarding forward-looking information
Certain statements in this press release contain forward-looking information (collectively referred to herein as “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 “,” plan “,” intend “and similar expressions are intended to identify forward-looking statements. In particular, but without limiting the foregoing, this press release contains statements forward-looking statements regarding: the restructuring of the facility agreement and the timing thereof, the intended use of the proceeds and the timing of the placement as well as the income and progress of the development of the Company’s mining projects.
Although TVC believes that forward-looking statements are reasonable, they are not guarantees of future results, performance or achievement. A number of factors or assumptions were used in making the forward-looking statements, including: continued support from the lenders in the renegotiation of the facility agreement, no other material disruption affecting the development and operation of MTV; the availability of certain consumables (including water) and services and the prices of electricity and other essential supplies; expected labor and material costs and available supply; expected fixed operating costs; permits and arrangements with stakeholders; certain tax rates, including the attribution of certain tax attributes, being applicable to MTV; the availability of funding for the anticipated operational and development activities of the Company and MTV; assumptions made in the estimates of mineral resources and mineral reserves and the financial analysis based on these estimates, including (if applicable), but not limited to, the geological interpretation, grades, price assumptions of commodities, metallurgical performance, mining and recovery rates, hydrological and hydrogeological assumptions, capital and operating cost estimates, and general marketing, political, business and economic conditions, continued availability of quality management, critical accounting estimates, all terms of the restructuring agreement and installation agreement to which MTV and the Company are parties will be satisfied in the future, including no event of default (except as authorized by the Undertaking), existing water supply will continue, additional water availability will continue, geopolitical risk of Ch it will remain stable, including risks related to labor disputes, construction and mining expansion including the Papomono Masi vo underground inclined block caving mining project, as well as its timing and production; the favorable outcome of litigation and / or arbitration initiated by the minority shareholder of the Company’s operating subsidiary, MTV; the production schedule and results of the recently restarted Don Gabriel mine; and the expected time frames for the withdrawal and repayment of MTV’s debt.
Actual results, performance or achievements could differ materially from those expressed or implied by forward-looking statements if the assumptions underlying the forward-looking statements prove to be inaccurate or if one or more risks or other factors materialize, including: (i ) possible variations in the score or recovery rate; (ii) fluctuations and uncertainties in copper prices; (iii) delays in obtaining government approvals or funding; (iv) risks associated with the mining industry in general (for example, operational risks associated with development, exploration and production; delays or changes in plans regarding exploration or development projects or capital expenditure; the uncertainty of estimates and projections relating to mineral reserves, production, costs and expenses, and risks related to work, health, safety and the environment) and risks associated with industries other portfolio companies in general; (v) the performance of the counterparty to the ENAMI Contract; (vi) risks associated with investing in emerging markets; (vii) general economic, market and business conditions; (viii) market volatility which would affect the ability to enter or exit investments; (ix) failure of the strategic review to result in a strategic review event; (x) the inability to obtain additional financing in the future on terms acceptable to the Company, if any; (xi) fluctuations and uncertainties in commodity prices and exchange rates; (xii) risks associated with catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or a public health epidemic or other public health crises, including COVID-19 ; (xiii) the risks disclosed under the heading “Risk Management” in TVC’s MD&A for the period ended December 31, 2020; and (xiv) risks disclosed under “Risk Factors” or incorporated by reference in TVC’s annual information form dated March 3, 2021. Forward-looking statements speak only as of the date hereof, unless otherwise indicated, and SRHI assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable Canadian securities laws.
For more information:
Chief Executive Officer
T: (416) 943-7107
E: [email protected]
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 press release.