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. 

Advancing the MTV Mission

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. 

Strategy Comes Into Focus

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. 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.