Three Valley Copper (TSXV:TVC) has announced that it has increased its ownership of Minera Tres Valles to 95.1%, following the closing of the previously announced bought deal financing. This increases the company’s share of MTV from the previous 91%. About $9 million of the previously announced bought deal financing was used to subscribe to the newly issued shares of Minera Tres Valles.
The closing of the bought deal financing on November 25 gave the minority shareholder, and SRH Chile SpA the opportunity subscribe for newly issued shares of MTV. Since the minority shareholder declined to participate, their shares were diluted from an 8.9% stake to 4.9%. Critically, Three Valley Copper expects that the minority shareholder’s position will likely be diluted further if they decline to participate in any future anticipated MTV share issuances.
The increased ownership of MTV will give Three Valley Copper better operational control over production and future exploration at the property.
Minera Tres Valles is in the process of expanding its capacity in order to increase copper production in 2022 through to 2023. The company is targeting 13-000 to 16,000 tonnes of copper cathode production in 2023. Ultimately all Three Valley Copper shareholders will benefit from the increased copper production at Minera Tres Valles. As the majority shareholder of MTV, Three Valley Copper, and its shareholders stand to gain significantly from the future advancement of the project as well as planned exploration at the property. MTV is still 10% unexplored, with potential future discoveries waiting in the 46,348 hectares of exploratory lands.