Three Valley Copper (TSXV:TVC) announced this morning that it had closed the previously announced bought-deal offering and exercise of the over-allotment option. The financing will help the company advance the Minera Tres Valles copper project in Chile, and fund exploration at the site. Additionally, funds will be used for working capital and general corporate purposes as Three Valley Copper explores, develops, and produces 99.99% copper cathodes at its flagship property.
Initially, the company entered into an agreement with co-lead underwriters and joint bookrunners PI Financial Corp. and Eight Capital for a C$10 million bought deal financing.
Then, shortly after, due to significant investor demand, PI Financial Corp and Eight Capital amended the agreement to increase the size of the deal.
Details of the financing are as follows:
The Company issued a total of 56,681,000 units (the “Units”) on a bought deal basis, at an offering price of C$0.32 per Unit (the “Offering Price”), which included 6,681,000 Units issued pursuant to the exercise of the over-allotment option, and issued 819,000 additional Common Share purchase warrants (each, a “Warrant”) pursuant to the exercise of the over-allotment option at an offering price of C$0.08 per Warrant, for gross proceeds of approximately C$18.2 million. Each Unit consists of one Class A common share (a “Common Share”) in the capital of the Company and one Warrant. Each Warrant entitles the holder thereof to purchase one Common Share at a price of C$0.45 for a period of 30 months following the closing of the Offering.
Source: Three Valley Copper
Michale Staresinic, CEO of Three Valley Copper (TSXV:TVC) commented in a press release: “This new equity capital coupled with the concessions provided by our senior lenders provide a roadmap for the Company to complete its flagship project at MTV, Papomono is on schedule to begin its first caving operations in January 2022 followed by an increasing production profile during 2022 and ultimately reach near production capacity in 2023. In parallel, we continue the strategic review process announced by the Company in October and welcome our new shareholders with the closing of this equity raise, and thank our existing shareholders for their ongoing support.
“With copper prices firmly above US$4 per pound for the majority of 2021, we continue to believe this level of price support for copper will continue in the long-run. The electric vehicle revolution, infrastructure stimulus spending, and world consensus on decarbonization back our strong conviction that our pure-play copper project with 46,000 hectares of underexplored lands will produce strong results for shareholders once we are able to reach production capacity. Our new shareholders see this too and we welcome their support through this Offering.”
It was announced yesterday that Three Valley Copper Corp (TSXV:TVC) has entered into an undertaking between itself and its secured lenders of Minera Tres Valles, the Company’s primary asset that is 91.1% owned and located near Salamanca, Region de Coquimbo, Chile.
The company, with its direct and indirect wholly-owned subsidiaries including MTV and the lenders, have agreed to create a definitive binding agreement to revise the loan repayment schedule as set forth in the loan facility agreement.
Michael Staresinic, President and CEO of Three Valley Copper, said in a press release: “Our senior lenders continue to work as partners with us. This is an important first step in restructuring MTV’s debt obligations to improve cash flow from MTV in 2022 as we complete the development of the Papomono mine and ramp up production in 2022. Papomono is nearing completion and we remain on schedule to complete our first caving of ore in January 2022.”
Terms and conditions of the undertaking include the lenders agreeing not to accelerate or enforce their rights or remedies under the Facility Agreement if MTV were to fail to make scheduled loan repayments on March 31, 2022, June 30, 2022 and September 30, 2022 and/or replenish the operating reserve account to reestablish the Minimum Reserve as required under the Facility Agreement.
Also included in the conditions, the proceeds of the recently announced bought-deal financing of C$16 million will not be used to repay any of the loans outstanding under the Facility Agreement during the Forbearance Period. The Forbearance period is from November 22, 2021, to October 1, 2022. That financing was upsized from C$10 million after significant investor interest was expressed.
This undertaking follows the recent announcement to increase the size of the previously announced bought deal financing to an aggregate of 50,000,000 units of the Company at a price of C$0.32 per Unit. This is an excellent step forward with TVC’s partners and helps to secure financing that is expected to close later this week.
Three Valley Copper (TSXV:TVC) took an important step today in funding the advancement of the company’s flagship 91.1% owned Minera Tres Valles copper mining project. Initially, it entered into an agreement with co-lead underwriters and joint bookrunners PI Financial Corp. and Eight Capital for a C$10 million bought deal financing.
Then, shortly after, due to significant investor demand, PI Financial Corp and Eight Capital amended the agreement to increase the size of the deal. It now consists of 50,000,000 units at a price of C$0.32 per unit for gross proceeds of C$16,000,000.
The deal includes 50,000,000 units of common shares at a price of C$0.32, and one common share purchase warrant for each unit. These are exercisable into one common share of the company at a price of C$0.45 for a period of 30 months following the closing of this offering.
This will help fund the advancement of exploration and development at the company’s Minera Tres Valles project and for working capital and general corporate purposes. The offering is expected to close on or around November 19, 2021, subject to regulatory approvals including the approval from the TSX Venture Exchange where Three Valley is listed under the symbol “TVC”.
The underwriters also have the option, exercisable at the offering price for a period of 30 days following the closing, to purchase up to an additional 15% of the units or the components of the units to cover over-allotments and for market stabilization purposes.
The announcement comes on the heels of the October 20 announcement that the company had initiated a strategic review to explore alternatives for the enhancement of shareholder value. The goal is to maximize production at Minera Tres Valles, and increase cash flows from its mining assets in Chile.
This will encompass a thorough evaluation of the development strategy, business plan, market valuation, and capital structure, and could bring into focus a number of new opportunities for the company going forward. While this financing is one of them, strategies could include mergers, strategic partnerships, acquisitions, restructuring, and refinancing of long-term debt.
Through the strategic review, Three Valley will be able to chart a clear path forward for the end of 2021 and into early 2022 as it looks to explore, develop, and produce at Minera Tres Valles. The property consists of 46,000 hectares, 95% of which are unexplored, presenting a large opportunity and potential for future development.
Three Valley Copper (TSXV:TVC) is reviewing its development strategy, business plan, market valuation, and capital structure in a bid to deliver enhanced shareholder value and maximize production and cash flows.
The company’s 91.1% owned Minera Tres Valles property near Salamanca, Region de Coquimbo, Chile will be the focus of the evaluation, during which the company will consider mergers, strategic partnerships, acquisitions or disposition, restructuring or refinancing of its long-term debt, and any other options available to Three Valley to maximize shareholder value.
To complete the review, PI Financial has been retained. While the process does not guarantee a transaction or investment, the company looks to be aiming for the best strategies for maximizing results at its Papomono Masivo deposit. Papomono Masivo (PPM) has become a priority for Three Valley and the company is aiming to hit an increased production profile at Minera Tres Valles by ramping up production there.
Although the exploration program will be temporarily scaled back during the strategic review process, the review may reveal optimal paths forward for its exploration efforts to maximize drill programs. The review process will evaluate any and all alternative avenues for maximizing value, and the exploration program is a key pillar of shareholder value at Three Valley Copper.
PPM is a critical catalyst for Minera Tres Valles, and the successful development of this deposit continues to be a priority. For this reason, management has reviewed the preliminary development and mining plans at PPM and has decided to increase capital expenditures in 2022 instead of deferring some of those into the latter years of the mine life. This decision was made after a thorough review and concluded with a forecast from Three Valley that additional capital of approximately US$10 million in 2022 will be needed to achieve the recently announced production guidance. This decision will keep the program on track and keep the project on track for its timeline.
The Don Gabriel mine has experienced a lower head grade than initially forecasted, and as such, Three Valley Copper put a number of remedial measures in place in the third quarter. The delay between the implementation of those measures and the improved results may take a number of months to appear, due to the workflow of a heap leach operation. Initially, Three Valley had anticipated that copper production at Don Gabriel along with the recent drawdown of the remaining US$6 million of senior debt in September would support those operations and the ongoing PPM project. With production lower than expected and the Don Gabriel mine being the company’s primary source of ore to produce copper cathodes for 2021, Three Valley’s tight liquidity position has been amplified. Several factors are contributing to the liquidity crunch, including the company’s mostly fixed operating cost base, increased capital demands due to the PPM deposit 2022 development, and scheduled debt repayments due to begin March 2022.
As such, Three Valley has announced that it does not expect to generate sufficient cash from operations to fully fund 2021 operations, planned investment activities, plus debt service obligations in March 2022 and the increased sustaining capital expenditures next year for PPM. To secure funding, Three Valley has initiated discussions with senior secured lenders and the company’s offtake provider.
This may allow the company to make changes to the existing loan agreement, inter alia, bridge loan financing, waivers of operating covenants, deferrals of or renegotiation of repayment terms, and/or renegotiation of the fixed-price portion of the offtake agreement. In the event of a successful strategic review and/or negotiations with the company’s senior secured lenders, Three Valley Copper will have the liquidity necessary to execute the planned production expansion at Minera Tres Valles.
Three Valley Copper (TSXV:TVC) stock was up 6% to CA$0.53 yesterday.
The Company’s revised preliminary operating outlook1 for 2022 at MTV is as follows:
|Operating information||Year Ended||Year Ended|
|Copper (MTV Operations)||Dec. 31, 2022||Dec. 31, 2022|
|Cu Production (tonnes)||8,000 – 10,000||8,000 – 10,000|
|Cu Production (pounds)||17.6M – 22.0M||17.6M – 22.0M|
|Cash Cost per Pound Produced2||$2.75 – $3.25||$2.75 – $3.25|
|Capital Expenditures3 ($ millions)||$15 – $20||$5 – $10|
In the absence of a successful strategic review event and/or renegotiations with its senior secured lenders which will require financial liquidity solutions for MTV before the end of 2021, additional material changes to the Company’s revised preliminary outlook above will then be required.
Three Valley Copper Corp. (TSXV:TVC) has announced a corporate and operating update for its 91.1% owned Minera Tres Valles property near Salamanca, Region de Coquimbo, Chile. The company also provided guidance for 2022 and 2023, and news of a new copper porphyry target.
December 2020 saw construction begin at Papomono Masivo which has proven and probable reserves of approximately 102 million pounds of contained copper with an average grade of 1.51%4. Papomono’s development is currently at 71% for horizontal works and 85% for vertical works. Expectations are that Papomono will be completed at the end of 2021 or in early 2022. Production is expected to then ramp up in 2022.
“We continue to improve the development rate of this project during the month of August (the advance rate being the best month on record), and we expect the fourth quarter’s projected advance rate to be similar,” said Joe Phillips, COO of the Company. “We have completed the critical ventilation shaft and the ore pass which will further accelerate the speed of our continued advance. We remain on track to commence the caving/mining process in December 2021 or early 2022.”
Guidance for 2022 and 2023 has also been provided by Three Valley Copper (TSXV:TVC) since the positive progress for the Papomono project is moving swiftly:
Copper production is expected to significantly increase in 2022 compared to 2021’s production range of 4,500 to 5,500 tonnes as the initial construction of the PPM project concludes and mining of PPM begins during the 2022 ramp-up year. Thereafter, it is expected that annual production between 13,000 and 16,000 tonnes of copper cathode will be attained in 2023 approaching the operation’s full production capacity. The Company’s production profile includes mineralized material from both Don Gabriel and PPM during 2022 and predominantly from PPM during 2023 together with material from ENAMI and third-party miners expected during both years. Looking forward to 2022 and 2023, Cash Costs are expected to fall significantly driven by higher grades from PPM and throughput coupled with decreased capital development and other sustaining capital programs. As the Company exits 2021 and completes its budgeting process, updates to this preliminary guidance may be required.
Three Valley Copper commenced its near-mine exploration program at Minera Tres Valles on September 15 and has now announced it has identified a new copper porphyry target in its license area.
Previously mapped as a late Cretaceous granitoid intrusive, the identified targets displays likely hydrothermal alteration characteristics of the phyllic zone of porphyry copper deposits. This was determined after processing ASTER satellite data from the United States Geological Survey.
The newly identified central core is approximately 2 kilometres by 1 kilometre, and this outlines the surface footprint of the new target. A nearby copper deposit has been described as a skarn, and it should be noted that copper skarns are often nearby porphyry deposits. The fact that they are often located near one another is a very positive indicator for this new target and Three Valley Copper.
Michael Staresinic, President and CEO of Three Valley Copper commented, “John Mortimer, our exploration consultant, has identified an exciting target for the Company. Copper porphyry deposits are associated with some of the largest long-life copper mines in the world, with Chile hosting the greatest concentration of these deposits. This target is an example of the broader potential of this property as we continue to identify additional targets on our 46,000-hectare land package. This target forms part of our new exploration sections in our corporate presentation available on our website at https://www.threevalleycopper.com.
The recently announced exploration campaign will continue as planned, focusing on 6,000 to 8,000 metres of proposed drilling near Minera Tres Valles’ existing mines. Once this exploration campaign is completed, Three Valley Copper (TSXV:TVC) will direct its efforts toward this new exciting copper porphyry target.
Three Valley Copper (TSXV:TVC) announced this morning the start of its near mine exploration drilling program at its Minera Tres Valles project in the Salamanca region of Coquimbo, Chile. A geophysical survey of the area was conducted by Zonge Ingenieria y Geofisica Chile (SA) under the previous ownership of Compania Minera Latino Americano (LTDA), a subsidiary of Vale, in 2005. This information was used by the exploration team to plan the 2021 exploration program at the property, including geophysical, magnetic, and IP chargeability anomalies and similarity anomalies related to the Papomono and Don Gabriel mines.
The commencement of the exploration drilling program marks the beginning of a critical prong of Three Valley Copper’s business model. As a company exploring, developing, and producing copper, Three Valley is in a unique position to unlock the value of the assets it explores. Minera Tres Valles could be one of those assets.
Michael Staresinic, President and CEO of Three Valley Copper (TSXV:TVC) had this to say about the news: “Since Vale first staked the property and found our two deposits named Don Gabriel and Papomono in 2005/2006, little further exploration has been performed on the property.
“A majority of Vale’s 170,000 meters of diamond drilling was focused on defining these two deposits. Multiple targets were identified elsewhere on the 46,000-hectare land package although detailed follow-up was postponed while delineation of Don Gabriel and Papomono was prioritized.
“Our drill program will test high-potential copper targets located between Don Gabriel and Papomono, which sit approximately 3 kilometers apart. This initial area of focus represents less than 5 square kilometers or approximately 1% of our land package. We believe this is an excellent opportunity to identify new near-surface copper occurrences close to our existing mines and mineral processing plant.”
The Papomono and Don Gabriel mines are TVC’s two main ore sources but the exploration campaign looks to explore areas where two of the largest and longest third-party miners on the property operate, containing oxide-rich capsthat MTV facilities develop and process. It is also noteworthy that between the Papomono and Don Gabriel mine where Verde is located, there is a collection of artisanal pits. MTV believes similar geophysical features of the District and maps of similar copper mineralized rocks will help determine drilling targets for the upcoming program.
The possibility of being part of a larger mineralized system is consistent with available geophysical soil data. The initial drilling is expected to be between 6,000 and 8,000 meters, with a budget of $2.5 million for the drilling. Drilling will be carried out with existing surface infrastructure and current environmental approvals. The exploration team will evaluate the results of the new drill holes as they become available and incorporate them into a dynamic design and management program.
Minera Tres Valles is also a symbol of what Three Valley Copper (TSXV:TVC) is aiming for. The mine received visitors from the surrounding communities at the site for a demonstration of an in-situ controlled blasting event. The purpose of the event was to teach the protocols required by the regulatory authorities to the community representatives and show correct compliance with regulations. Now, TVC will put its ESG plan into action with the drill program.
The company produces Electrolytic Copper Cathodes (Grade A) of 99.99% purity. That copper is often used in electric equipment like technology, battery parts, and the copper can easily be drawn and formed into wires.
With the current focus on global decarbonization efforts, this particular type of copper is seeing massive demand growth. Electrolytic copper undergoes refining or purification through the process of electrolysis. That purification is by far the simplest method of achieving purity levels 99.99% in copper and makes Three Valley Copper’s product particularly valuable in a world that is rapidly going electric.
Three Valley Copper (TSXV:TVC), the majority owner of the Minera Tres Valles (Three Valley Mine) in Chile, is located in the town of Salamanca in the Choapa Province. The mine is 91.1% owned by the Canadian company, with the rest of the mine (30%) being owned by the Chilean group, Vecchiola S.A.
Three Valley’s approach to mining means its commitment to ESG principles comes first in the process from development to production, and consultation is critical to this process. One of the ways the company is achieving this is through bringing visitors to the mine to ensure the company is being totally transparent with everyday operations.
In May, Minea Tres Valles received visitors from nearby communities in Salamanca for a demonstration of an in-situ controlled blasting event. This blasting event allowed Three Valley to teach the protocols requires by the regulatory authorities to the community representatives and show correct compliance with regulations. This transparency is something most companies don’t bother with and is what Three Valley seems set on dedicating itself to.
The event was directed by the Sustainability Manager and other managers from Minera Tres Valles and included the president of the surrounding communities for the project. They included: Viviana Varas, president of the Manquehua Community, Iris Astudillo, president of the El Senor de la Tierra Community, Fredy Rivera, president of the El Tebal community, and Wenceslao Layana, present of the Chalinga Agricultural Community.
Critical points with the blasting event included and were confirmed by all parties:
While most companies end consultation once the project has begun, the importance of Miner Tres Valles is not lost on management. Three Valley Copper is looking to set an important precedent for the region and the industry as it consults with local communities, particularly during a time of great necessity due to the ongoing health pandemic.
Mining Manager of Minera Tres Valley Sergio Molina commented, “It is thanks to these opportunities to discuss and participate with the leaders of surrounding communities that give MTV that tools to understand and respond to the questions from our neighbours; this promotes a great closeness with the Company, receiving reliable information from the source.”
Three Valley Copper Corporation (“TVC” or the “Company”, formerly SRHI Inc.) announced today its financial and operating results from the second quarter of 2021, which is the three and six months that ended June 30th, 2021.
The Company is focused on growing copper production from, and further exploration of, its primary asset, Minera Tres Valles SpA (“MTV”). Located 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 exploratory lands. The Company’s financial statements and management’s discussion and analysis (“MD&A”) are available at www.threevalleycopper.com and www.sedar.com.
Three Valley Copper Corp or “TVC” is located in the Cretaceous belt of Chile and has over 46,000 hectares of land to explore and mine. TVC already has over 100 copper occurrences and 70 “artisanal exploitation points” registered with geological features similar to those of its “identified orebodies.” They are currently producing 99.999% pure copper from its mineral reserves, with up to 18,500 tonnes of pure copper cathodes annually, which are the highest quality cathodes available on the market. TVC has also completed 170,000 meters of diamond drilling, and has a handful of other successful Chilean copper mines. TVC has great potential in the copper mining industry as only roughly less than 10% of their 46,000 hectares has been explored, leaving thousands of hectares yet to be investigated.
MiningFeeds is pleased to report that updates about Three Valley Copper will be covered in full here on MiningFeeds.com, as the company develops and produces at its copper properties in Chile. The company has been on something on a run lately, and we will be bringing you all the updates as they come to ensure you don’t miss anything.
The company’s recent name change was accompanied by an update to the website, a ticker symbol change, as well as a brand new investor presentation. Common shares and warrants trade on the TSX Venture Exchange under the new name and symbols “TVC” and “TVC.WT” after it was changed from SRHI to Three Valley Copper.
In a June statement, Michael Staresinic, President and CEO of Three Valley Copper, commented, “We are pleased to announce a rebranding of the company that reflects its transformation. We want our company name and symbol to clearly reflect our business and its deep roots in Chile.”
The company’s primary asset, Minera Tres Valles (Three Valley Mine), is located in Salamanca, Chile and is 90.3% owned by the company. The main assets at the property are the mining complex and 46,000 hectares of exploratory lands.
The Canadian copper mining company’s projects are located in the prolific Cretaceous belt of Chile that hosts a large number of rich deposits. The company produces Electrolytic Copper Cathodes (Grade A) of 99.999% purity. That copper is often used in electric equipment like technology, battery parts, and the copper can easily be drawn and formed into wires.
With the current focus on global decarbonization efforts, this particular type of copper is seeing massive demand growth. Electrolytic copper undergoes refining or purification through the process of electrolysis. That purification is by far the simplest method of achieving purity levels 99.999% in copper and makes Three Valley Copper’s product particularly valuable in a world that is rapidly going electric.
The company has two main deposits: Papomono Masivo and Don Gabriel. The company’s strategy is to produce ECC, while simultaneously exploring its property to increase the visibility of the mine and extend the life of the mine. Both deposits are located in a 10 kilometre wide corridor of middle to upper Cretaceous volcanic rocks. This property is bounded by north-south-trending faults and stand as examples of stratabound, manto-type copper deposits.
Three Valley’s projects are in progress and advancing rapidly, and MiningFeeds will keep readers informed of any progress and new information for the complete picture of Three Valley Copper.
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