(TSXV: TVC) - Three Valley Copper Corp.
("
TVC" or the "
Company", formerly
SRHI Inc.) today announced its operating and financial results for
the three and six months ended June 30, 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.
Highlights
Corporate
- Successfully
closed a bought deal offering ("Offering")
including the full exercise of the over-allotment option for net
proceeds of approximately $8.3 million.
- The Company,
through its indirectly held subsidiary (SRH Chile SpA), subscribed
for additional common shares of MTV for approximately $6.8 million,
resulting in the Company's indirect holding of MTV increasing from
70% to 90.3% effective June 3, 2021. Effective August 16, 2021, a
further subscription was executed resulting in the Company's
indirect holding of MTV increasing to 91.1%.
- On June 22,
2021, the Company formally changed its name to Three Valley Copper
Corp. and began trading on the TSXV under the symbol TVC. In
conjunction with the name change, the Company launched a new
website (www.threevalleycopper.com).
Operations
- Retained Dr.
John Mortimer as the Company's independent exploration geologist to
lead the renewed exploration program that commenced in the second
quarter of 2021.
- Successfully
settled union strike without disruption leaving monthly wages
unaffected in a new 3 year agreement.
- Copper cathode
production was 1,035 tonnes at an average grade of 0.53%,
increasing 15% from 900 tonnes at an average grade of 0.57% for the
three months ended March 31, 2021 as the restart and scaling up of
operations continued during the second quarter of 2021.
- For the six
months ended June 30, 2021, capital expenditures of $6.1 million
were incurred related to the construction and development of the
incline block caving mine at the Papomono Masivo deposit,
consistent with annual guidance of $12 - $15 million total capex.
Construction continues and is approximately 50% complete, targeting
production commencing early 2022.
- Effective August
1, 2021, an amendment to the offtake agreement was executed
deferring the remaining 12 months of contracted delivery amounts of
the fixed price sales component (at $2.89/lb) until May 1, 2022.
All sales of copper cathodes commencing August 1, 2021 until April
30, 2022 will be sold at the prevailing spot price for copper
cathode, less a nominal amount.
Financial
- Reported gross
loss of $4.3 million (including a write-down of inventory of $4.2
million primarily on long-term inventory) on a realized copper
price1 of $3.37 compared to $2.42 in Q2 2020.
- Adjusted EBITDA
from continuing operations1 of $0.1 million compared to $(1.8)
million in Q2 2020.
- Net loss per
share attributable to owners of the Company of $(0.12) compared to
$(0.10) in Q2 2020.
Commenting on the results, Michael Staresinic,
President and Chief Executive Officer of TVC stated, "The landscape
in Chile this past quarter provided some challenges for the Company
in executing its business plan. COVID-induced equipment shortages
together with the intense competition in the labor market resulting
from the high copper price environment has led to contractors
competing for skilled labor that affected our ore production and
construction advancement rate at Papomono. However, as we moved
into the third quarter, we have made significant progress in
mitigating this. Beginning in July, we augmented our open pit
operations with a second contractor and since their addition,
operations in the open pit have progressed better than forecast. We
have also secured another drill rig that will aid in both the open
pit operations in the coming months and the exploration program
that began this past quarter."
"On April 16, we successfully completed a
capital raise for net proceeds of $8.3 million. This additional
capital provided the operation with working capital flexibility and
allowed us to commit to and begin the Company's first exploration
program. With over 46,000 hectares available to explore with highly
prospective exploration targets including the 100 outcrop copper
occurrences identified and 170,000 meters of diamond drilling
performed by previous owners, we expect to provide preliminary
results from our exploration campaign in the first half of 2022. We
began the first phase of this program during the quarter led by Dr.
John Mortimer who is building the team around him to execute on
this timeline. We hope this is the beginning of a multi-year
exploration program."
"We continue to work with our underground
contractor to secure the necessary skilled labor force but now
believe we will complete this important Papomono Masivo
construction project in the first quarter of 2022. As a result,
some of the production anticipated for 2021 will be shifted to 2022
and our expected cathode production for 2021 will decrease
accordingly with full year production now expected to be between
4,500 and 5,500 tonnes. To help offset this reduced production, our
team was successful in obtaining a deferral of the fixed price
component of the offtake agreement so that effective August 1, 2021
to April 30, 2022, all copper cathode sales will be sold near
current prevailing copper prices instead of a portion at $2.89/lb.
This will improve our near-term cash flow."
"As planned, we continued to operate well below
capacity as we continued with the reopening of our Don Gabriel open
pit while continuing the construction and development of the
higher-grade Papomono Masivo that is expected to commence
production in early 2022 and is expected to ultimately generate
underground production in excess of 2,000 tonnes per day while
significantly reducing unit-mining costs."
"Despite these interim challenges, the business
has progressed well and is steadily improving with cathode
production increasing 15% over Q1-2021. Much has been accomplished
by the team in Chile including the salt leach infrastructure build,
the restructuring of MTV in 2020, the restart of operations earlier
this year and advancement of 50% of the Papomono Masivo underground
construction, all complicated by the complexities of COVID-19. We
believe we are in the early stages of a multi-year copper bull
market with increasing attention and agreement to the widening gap
between expected supply and demand being openly acknowledged. TVC
is uniquely positioned among junior copper companies to take
advantage of this coming cycle - fully built infrastructure,
producing operations with defined deposits and, a rich land package
in a very good neighborhood."
Operational Results Summary
|
Three months ended |
Six months ended |
Operating information |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Copper (MTV Operations) |
|
|
|
|
Total ore mined (thousands of tonnes) |
194 |
|
53 |
|
373 |
|
301 |
|
Grade of ore mined (% Cu) |
0.53 |
% |
0.98 |
% |
0.55 |
% |
0.85 |
% |
Total waste mined (thousands of tonnes) |
349 |
|
97 |
|
619 |
|
735 |
|
Ore Processed (thousands of tonnes) |
226 |
|
86 |
|
449 |
|
385 |
|
Cu Production (tonnes) |
1,035 |
|
1,228 |
|
1,935 |
|
2,712 |
|
Cu Production (thousands of pounds) |
2,281 |
|
2,707 |
|
4,267 |
|
5,979 |
|
Change in inventory ($000s) |
$ |
830 |
|
(1,184 |
) |
$ |
6,864 |
|
(4,410 |
) |
Cash cost of copper produced 1 (USD per pound) |
$ |
4.63 |
|
$ |
2.43 |
|
$ |
3.53 |
|
$ |
2.87 |
|
Realized copper price 2 (USD per pound) |
$ |
3.37 |
|
$ |
2.42 |
|
$ |
3.42 |
|
$ |
2.32 |
|
1 Refer to Non-IFRS Performance
Measures
Ore Production
- Ore mined of
178,105 tonnes at a grade of 0.50% from Don Gabriel representing
92% of ore mined.
- 72% of ore
processed from Don Gabriel; 21% from third-party small miners and
ENAMI; 7% from Papomono Masivo.
- Produced 2.3
million pounds of 99.99% pure copper cathodes at a cash cost per
pound produced1 of $4.63.
- Sold 2.2 million
pounds of copper cathodes at an average realized copper price1 of
$3.37 per pound.
- High unit costs
expected throughout 2021 and into 2022 as the Company expects to
operate below capacity until Papomono Masivo is in full
production
Construction and Development of Papomono
Masivo
- Block caving
construction 47% complete with 14 opened construction fronts -
targeted completion in early 2022 and within budget
- Higher grade ore
being extracted as part of construction process.
- Production at
this higher-grade deposit scheduled to commence in early 2022 and
is expected to ultimately generate underground production in excess
of 2,000 tonnes per day while significantly reducing unit-mining
costs.
- Mineral reserve
estimate for Papomono Masivo is 3,067kt of proven and probable
mineral reserves (at a copper grade of 1.51%).
- Obtained new
mining permit approving the removal of mineralized material using
the block caving mining methodology.
Exploration
- Significant
strategic land package of over 46,000 hectares.
- Property in the
well-known copper producing Coquimbo region which has Antofogasta
Minerals’ Los Pelambres mine located approximately 50 kilometers to
the east of MTV.
- Dr. John
Mortimer, senior exploration geologist, retained and building out
team to execute exploration program.
- With more than
100 copper outcrop occurrences and 70 artisanal mining sites with
geological characteristics similar to that of the Papomono and Don
Gabriel orebodies, together with near-term infill drilling
opportunities, the Company believes there is significant
exploration potential.
COVID-19
- Beginning in
March 2021 and in conjunction with the Chilean Ministry of Mining,
the Ministry of Health and the Regional Mining Secretary of
Coquimbo, MTV initiated an on-site vaccination program by offering
vaccinations to all MTV employees and contractors. To date,
approximately 85% of the workforce have received both doses of the
vaccine and nearly 100% of the workforce has opted to participate.
The Company continues its preventative, mitigating and containment
measures to actively minimize the spread of COVID-19.
- Chile imposed
its strictest COVID-19 containment measures in April 2021 that are
continuing and have resulted in disruptions to delivery of
supplies, contractor productivity and reduced operations of
third-party small miners providing ore to MTV's facilities which
have delayed operations for 2021.
Revised 2021 Guidance
TVC's updated guidance for copper production,
cash cost per pound produced and capital expenditures is set out
below together with the original guidance amounts. The revised
guidance reflects several factors which collectively resulted in a
reduced forecast for the remainder of 2021.
- COVID-19 and
Chile's resulting restrictions have resulted in disruptions to
third-party small miners that provide ore to MTV's facilities. Ore
deliveries have been below budget and forecasts have been revised
downwards for the remainder of 2021.
- COVID-19 has
resulted in disruptions to supply chains affecting contractors'
ability to source the necessary spare parts to maintain and operate
equipment fleets causing operational and production delays.
- The high copper
price environment has created intense competition for skilled and
unskilled labor in the country. Contractors are experiencing
challenges to fully staff shifts to complete planned works at site.
These shortages have resulted in delays in both the Don Gabriel
open pit operations and the advancement in the underground Papomono
Masivo mine construction delaying planned copper production to
2022.
- Operating costs
are expected to increase over the remainder of 2021, partly in
response to the Company's efforts to rectify the intense
competition for skilled and unskilled labor in the country. The
Company is assessing what the affect on cash cost per pound
produced1 will be once the full impact of these efforts is known.
It is expected that cash cost per pound of copper produced1 will be
at or above the high range of previous guidance ($2.60 -
$2.90).
|
Revised Guidance August 2021 |
Original Guidance February 2021 |
Cu production (tonnes) |
4,500 - 5,500 |
6,000 - 7,000 |
Cu production (millions of pounds) |
9.9 - 12.1 |
13.2 - 15.4 |
Capital expenditures ($ millions) |
$12 - $15 |
$12 - $15 |
1 See Non-IFRS Performance Measures2 Guidance is
based on certain estimates and assumptions, including but not
limited to, mineral reserve estimates, grade and continuity of
interpreted geological formations and metallurgical performance.
Please refer to the technical report prepared by AMEC Foster
Wheeler, a Wood company, in respect of the Minera Tres Valles
Copper Project filed on December 14, 2018 and subsequently amended
and restated on May 27, 2021 and the Company’s SEDAR filings
available under its profile at www.sedar.com for complete risk
factors.
Financial Results Summary
|
Three months ended |
Six months ended |
Financial information (in thousands) |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Revenue |
$ |
7,511 |
|
$ |
4,943 |
|
$ |
14,511 |
|
$ |
12,090 |
|
Gross loss |
$ |
(4,330 |
) |
$ |
(2,012 |
) |
$ |
(2,189 |
) |
$ |
(8,994 |
) |
Net loss from continuing operations |
$ |
(7,278 |
) |
$ |
(5,256 |
) |
$ |
(7,933 |
) |
$ |
(20,832 |
) |
Net loss from discontinued operations |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(2,241 |
) |
Net loss for the period |
$ |
(7,278 |
) |
$ |
(5,256 |
) |
$ |
(7,933 |
) |
$ |
(23,073 |
) |
Net loss per share attributable to owners of the Company |
$ |
(0.12 |
) |
$ |
(0.10 |
) |
$ |
(0.15 |
) |
$ |
(0.47 |
) |
|
|
|
|
|
EBITDA from continuing operations 1 |
$ |
(3,699 |
) |
$ |
(2,534 |
) |
$ |
(907 |
) |
$ |
(14,568 |
) |
Adjusted EBITDA from continuing operations 1 |
$ |
132 |
|
$ |
(1,771 |
) |
$ |
832 |
|
$ |
(3,601 |
) |
Gain (loss) on portfolio investments |
$ |
— |
|
$ |
1,038 |
|
$ |
107 |
|
$ |
(1,294 |
) |
Impairment of non-current assets |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(7,628 |
) |
Write-down of inventory |
$ |
(4,212 |
) |
$ |
(301 |
) |
$ |
(2,474 |
) |
$ |
(4,106 |
) |
Cash provided by (used in) operating activities before working
capital changes |
$ |
417 |
|
$ |
(1,069 |
) |
$ |
1,126 |
|
$ |
(3,315 |
) |
1 Refer to Non-IFRS Performance Measures
Financial Results
Revenues of $7.5 million for the three months
ended June 30, 2021 were generated predominantly from the sale of
copper cathodes. Finished goods inventory at June 30, 2021 was
approximately $2.2 million. Copper cathodes sold for the three
months ended June 30, 2021 of 1,010 tonnes was higher than the
comparative quarter in 2020 of 856 tonnes with their respective
revenues based on an average realized copper price of $3.37 and
$2.42 per pound.
The Company reported a gross loss of $4.3
million for the three months ended June 30, 2021 that includes a
write-down of inventory of $4.2 million that is recorded as an
increase to cost of sales. Included in the gross loss of $2.0
million for the comparable quarter, is a write-down of inventory of
$0.3 million that is recorded as an increase to cost of sales.
Revenues of $14.5 million for the six months
ended June 30, 2021 were generated predominantly from the sale of
copper cathodes. Copper cathodes sold for the six months ended June
30, 2021 of 1,916 tonnes was lower than the comparative period in
2020 of 2,210 tonnes with their respective revenues based on an
average realized copper price of $3.42 and $2.32 per pound.
The Company reported a gross loss of $2.2
million for the six months ended June 30, 2021 that includes a
write-down of inventory, net of reversals of $2.5 million that is
recorded as an increase to cost of sales. Included in the gross
loss of $9.0 million for the comparable period, is a write-down of
inventory, net of reversals of $4.1 million that is recorded as an
increase to cost of sales.
In accordance with the offtake agreement, MTV
sold 71% of its copper cathode production at $2.89 per pound for
the three months ended June 30, 2021. This percentage is higher
than the expected 40% as copper cathode production was lower during
the six months ended June 30, 2021 than was anticipated when the
fixed priced portion of the contract was entered into. The
increasing copper price together with MTV's obligation to sell a
set amount of its production at $2.89 per pound until July 2022
affects the economics of purchasing ore from third-party small
miners at market. At times, these purchases are uneconomic,
however, the Company continued this practice as the relationship
with these third parties to the business is of strategic importance
as is the continued access to the ore they produce.
Effective August 1, 2021, MTV executed an
amendment to the offtake agreement specific to the fixed price
sales component with its principal buyer of copper cathodes. Under
the terms of the amendment, the remaining monthly deliveries of
copper cathodes due under the fixed price portion of the offtake
agreement are deferred until May 1, 2022 and all sales of copper
cathodes commencing August 1, 2021 until April 30, 2022 will be
sold at the prevailing spot price for copper cathode, less a
nominal amount. The remaining 12 months of contracted delivery
amounts of the fixed price portion of the contract (3,382 tonnes)
will resume on May 1, 2022 at the previous agreed fixed price of
$2.89/lb.
The Company's general and administrative expense
for the three and six months ended June 30, 2021 was $0.9 million
and $1.9 million compared to $1.2 million and $2.4 million,
respectively, in the comparative periods, with the decrease
attributable to the Company recognizing retroactive tax credits
from the Government of Canada that were previously not available to
it and strides to reduce overall costs.
Finance expenses for the three and six months
ended June 30, 2021 totaled $2.2 million and $4.4 million compared
to $1.7 million and $3.3 million, respectively, in the comparative
periods, as the average balance of the Company's long-term debt
grew. Given the current grace period achieved for the long-term
debt under MTV's restructuring in 2020, cash interest payments made
during the three and six months ended June 30, 2021 amounted to
$0.1 million and $0.7 million, respectively.
The Company reported a quarterly net loss
attributable to owners of the Company of $6.0 million or $(0.12)
per share. Adjusted EBITDA (see Non-IFRS Financial Measures) from
continuing operations for the three months ended June 30, 2021 was
$0.1 million or $0.00 per share. For the comparable quarter in
2020, the Company reported a net loss attributable to owners of the
Company of $3.4 million or $(0.10) per share and Adjusted EBITDA
from continuing operations of negative $1.8 million or $(0.05) per
share.
In the first two quarters of 2021, the Company
reported a net loss attributable to owners of the Company of $6.3
million or $(0.15) per share. Adjusted EBITDA (see Non-IFRS
Financial Measures) from continuing operations for the six months
ended June 30, 2021 was $0.8 million or $0.02 per share. For the
comparable quarters of 2020, the Company reported a net loss
attributable to owners of the Company of $16.0 million or $(0.47)
per share and Adjusted EBITDA from continuing operations of
negative $3.6 million or $(0.11) per share.
In the first two quarters of 2021, cash used in
operating activities was $6.7 million (cash provided of $1.1
million before changes in non-cash components of working capital),
compared with 2020 when cash used in operating activities was $0.7
million (cash used of $3.3 million before changes in non-cash
components of working capital).
Cash Position, Working Capital and Net Debt
Cash and cash equivalents decreased to $8.6
million at June 30, 2021 from $12.0 million at
December 31, 2020 mainly due to $6.7 million used in operating
activities, $4.8 million of disbursed capital expenditures related
to the construction and development of Papomono Masivo and $0.7
million of interest payments; all partially offset by $8.3 million
of net proceeds from the Offering and $0.4 million of net proceeds
from the exercise of warrants.
The Company has working capital (see Non-IFRS
Financial Measures) of $2.6 million at June 30, 2021 and a
working capital deficit of approximately $1.3 million as at the
date hereof.
The Company is substantially leveraged. The
Company's net debt (see Non-IFRS Financial Measures) at
June 30, 2021 was $60.4 million. The Company's debt position
continues to increase as it capitalizes interest and remains in a
grace period for the majority of its debt and more than half of its
debt servicing payments until March 31, 2022.
Health and Safety
For the three months ended June 30, 2021, there
was one minor Lost-Time Incident. MTV's annual injury frequency
index continues to remain below the average of the mining industry
in Chile. The Company and MTV devote considerable time and effort
to ensure that workers and contractors return safely to their
families after each shift. Safety statistics are monitored and
compared to the country and peer averages, and MTV pro-actively
engages in education and assessment to achieve a goal of zero
lost-time incidents.
Community and Environment
MTV continues to work with local communities and
for the three months ended June 30, 2021, the MTV Foundation
continued the funding of projects agreed to by the MTV Foundation
board, which is largely composed of community representatives to
help MTV understand the true needs of its neighbors, such as
starting an eco-friendly cooperative at a local school. MTV’s ore
purchase program also ensures support from local miners, buying ore
from over 26 providers and supporting the development of over 300
small-scale miners through local mining unions.
Ongoing Arbitration
As previously disclosed, the Company is involved
in an arbitration proceeding with the minority shareholder of MTV.
The arbitration proceeding is continuing and no further material
developments have occurred. The Company remains confident in its
position and is monitoring the arbitration proceeding and its
process closely.
Qualified Persons
The scientific and technical content contained
in this news release is taken from the technical report (the
"Technical Report") entitled “Minera Tres Valles
Copper Project, Salamanca, Coquimbo Region, Chile NI 43-101
Technical Report” prepared by Dr Antonio Luraschi, RM CMC, Manager
of Metallurgic Development and Senior Financial Analyst, Wood, Mr
Alfonso Ovalle, RM CMC, Mining Engineer, Wood, Mr Michael G.
Hester, FAusIMM, Vice President and Principal Mining Engineer,
Independent Mining Consultants, Inc., Mr Enrique Quiroga, RM CMC,
Mining Engineer, Q&Q Ltda, Mr Gabriel Vera, RM CMC,
Metallurgical Process Consultant, GVMetallurgy, and Mr Sergio
Alvarado, RM CMC, Consultant Geologist, General Manager and
Partner, Geoinvestment Sergio Alvarado Casas E.I.R.L. all of whom
were independent qualified persons as defined by NI 43-101 at the
time the Technical Report was prepared. The Technical Report was
filed by TVC on SEDAR (www.sedar.com) on December 14, 2018 and
subsequently amended and restated on May 27, 2021. Readers are
encouraged to read the Technical Report in its entirety except for
certain sections withdrawn by the Company in relation to disclosure
regarding the Preliminary Economic Assessment appearing in the
Technical Report (see press release dated April 12, 2021).
About Three Valley Copper Corp.
TVC, headquartered in Toronto, Ontario, Canada
is focused on growing copper production from, and further
exploration of, its primary asset, Minera Tres Valles SpA. 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. For more information about
TVC, please visit www.threevalleycopper.com.
Non-IFRS Performance Measures
"Cash costs", "EBITDA", "Adjusted EBITDA",
"Realized copper price", "Working Capital" and "Net Debt" are
non-IFRS performance measures. These non-IFRS performance measures
do not have a standardized meaning prescribed by IFRS. These
measures may differ from those used by, and may not be comparable
to such measures as reported by, other issuers. The Company
believes that these measures are commonly used by certain
investors, in conjunction with conventional IFRS measures, to
enhance their understanding of the Company’s performance. For
further information and a detailed reconciliation of each non-IFRS
measure used in this press release to the most directly comparable
IFRS measure, please refer to the Company’s MD&A and
accompanying TVC financial statements filed on SEDAR at
www.sedar.com.
Cautionary Statement Regarding Forward-Looking
Information
Certain statements in this news release, contain
forward-looking information (collectively referred to herein as the
"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", "plans", "intends" and similar
expressions are intended to identify Forward-Looking Statements. In
particular, but without limiting the foregoing, this news release
contains Forward-Looking Statements pertaining to: future outcomes
and expectations related to MTV's ongoing operations, impacts of a
favorable copper price environment in the future; expectations
regarding the costs and timing of constructing Papomono Masivo
including impacts of the labour market in Chile; impacts of
COVID-19 and the Company’s and MTV’s precautions to manage and
mitigate same; expectations regarding production following
construction and ability and timing of generation of cash flow; the
sale of copper at prevailing market prices under the offtake
agreement improving cash flow; ongoing geopolitical risks in Chile;
expectations regarding the Company's revised 2021 guidance; the
long-term mine plan at Papomono Masivo and the timing in respect of
production growth therefrom; future block caving efforts and the
expected benefits therefrom and timing thereof; expectations
regarding exploration, the cost, timing and success of such
initiatives; and MTV's labour and health and safety initiatives and
expectations.
Although TVC believes that the Forward-Looking
Statements are reasonable, they are not guarantees of future
results, performance or achievements. A number of factors or
assumptions have been used to develop the Forward-Looking
Statements, including: there being no additional significant
disruptions affecting the development and operation of MTV; the
availability of certain consumables (including water) and services
and the prices for power and other key supplies being approximately
consistent with assumptions in the Technical Report; labour and
materials costs being approximately consistent with assumptions in
the Technical Report; fixed operating costs being approximately
consistent with assumptions in the Technical Report; permitting and
arrangements with stakeholders being consistent with current
expectations as outlined in the Technical Report; certain tax
rates, including the allocation of certain tax attributes, being
applicable to MTV; the availability of financing for the Company's
and MTV’s planned operations and development activities;
assumptions made in mineral resource and mineral reserve estimates
and the financial analysis based on these estimates, including (as
applicable), but not limited to, geological interpretation, grades,
commodity price assumptions, metallurgical performance, extraction
and mining recovery rates, hydrological and hydrogeological
assumptions, capital and operating cost estimates, and general
marketing, political, business and economic conditions, the
continued availability of quality management, critical accounting
estimates, all terms of the restructuring agreement and facility
agreement to which MTV and the Company are parties will be
satisfied in the future including no events of default, existing
water supply will continue, supplemental water availability will
continue, the geopolitical risk of Chile will remain stable,
including risks related to labour disputes, the construction and
expansion of mining operations including the Papomono Masivo
incline block caving underground mining project, as well as the
timing thereof and production therefrom; the timing of production
and results for the recently restarted Don Gabriel mine; and
expected timelines for drawdown and repayment of indebtedness of
MTV.
Actual results, performance or achievements
could vary materially from those expressed or implied by the
Forward-Looking Statements should assumptions underlying the
Forward-Looking Statements prove incorrect or should one or more
risks or other factors materialize, including: (i) possible
variations in grade or recovery rates; (ii) copper price
fluctuations and uncertainties; (iii) delays in obtaining
governmental approvals or financing; (iv) risks associated with the
mining industry in general (e.g., operational risks in development,
exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the
uncertainty of estimates and projections relating to mineral
reserves, production, costs and expenses; and labour, health,
safety and environmental risks) and risks associated with the other
portfolio companies' industries in general; (v) performance of the
counterparty to the ENAMI Contract; (vi) risks associated with
investments in emerging markets; (vii) general economic, market and
business conditions; (viii) market volatility that would affect the
ability to enter or exit investments; (ix) failure to secure
additional financing in the future on acceptable terms to the
Company, if at all; (x) commodity price and foreign exchange
fluctuations and uncertainties; (xi) risks associated with
catastrophic events, manmade disasters, terrorist attacks, wars and
other conflicts, or an outbreak of a public health pandemic or
other public health crises, including COVID-19; (xii) those risks
disclosed under the heading "Risk Management" in TVC’s Management’s
Discussion and Analysis for the period ended December 31, 2020; and
(xiii) those risks disclosed under the heading "Risk Factors" or
incorporated by reference into TVC’s Annual Information Form dated
March 3, 2021. The Forward-Looking Statements speak only as of the
date hereof, unless otherwise specifically noted, and SRHI does not
assume any obligation to publicly update any Forward-Looking
Statements, whether as a result of new information, future events
or otherwise, except as may be expressly required by applicable
Canadian securities laws.
Cautionary Note to United States
Investors Concerning Estimates of measured, indicated and inferred
mineral resources
This news release may use the terms "measured",
"indicated" and "inferred" mineral resources. Historically, while
such terms were recognized and required by Canadian regulations,
they were not recognized by the United States Securities and
Exchange Commission (the “SEC”). The SEC has
adopted amendments to its disclosure rules to modernize the mineral
property disclosure requirements for issuers whose securities are
registered with the SEC under the Securities and Exchange Act of
1934, as amended (the “Exchange Act”). These
amendments became effective February 25, 2019 (the “SEC
Modernization Rules”) with compliance required for the
first fiscal year beginning on or after January 1, 2021. The SEC
Modernization Rules replace the historical property disclosure
requirements for mining registrants that were included in SEC
Industry Guide 7, which will be rescinded from and after the
required compliance date of the SEC Modernization Rules. As a
result of the adoption of the SEC Modernization Rules, the SEC now
recognizes estimates of “measured”, “indicated” and “inferred”
mineral resources. In addition, the SEC has amended its definitions
of “proven mineral reserves” and “probable mineral reserves” to be
substantially similar to the corresponding Canadian Institute of
Mining, Metallurgy and Petroleum definitions, as required by NI
43-101. Investors are cautioned that "Inferred mineral resources"
have a great amount of uncertainty as to their existence, and as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or other
economic studies. United States investors are cautioned not to
assume that all or any part of measured or indicated mineral
resources will ever be converted into mineral reserves. United
States investors are also cautioned not to assume that all or any
part of an inferred mineral resource exists or is economically or
legally mineable.
For further information:
Michael StaresinicPresident and Chief Executive
OfficerT: (416) 943-7107E: mstaresinic@threevalleycopper.com
Renmark Financial Communications Inc.Joshua
Lavers: jlavers@renmarkfinancial.comT: (416) 644-2020 or (212)
812-7680www.renmarkfinancial.com
Source: Three Valley Copper Corp.
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