TORONTO, March 07, 2022 (GLOBE NEWSWIRE) -- (TSXV: TVC) (OTCQB: TVCCF) Three Valley Copper Corp. (“Three Valley Copper” or the “Company”) is pleased to report the start of its Papomono block caving operation at its 95.1% owned Minera Tres Valles (“MTV”) property near Salamanca, Region de Coquimbo, Chile.
Papomono Start of Block Caving Operations
The Company, with the support of MTV’s senior secured lenders and underground mining contractor, has decided to start the operations of the Papomono block caving mine while discussions with its senior secured lenders continue. The start of operations allows the Company to retain its current mining contractor with its knowledge and experience of the operations and avoid the cost of demobilization. The contractor has remained onsite since operations were halted in January allowing for an immediate start to block caving operations at Papomono.
The senior secured lenders have reiterated their continued support of MTV and are working with the Company and MTV to realize the robust economics from this underground mine. As part of the decision process to start the block caving operation and at the request of the senior secured lenders, MTV engaged consultants to undertake a technical optimization study in respect of Papomono. Phase one of this study has been completed and it supports the decision to start the operations of the Papomono block caving mine.
As a result, the senior secured lenders, together with the Company, have expressed their intention to provide $11 million of super senior secured funds to MTV, the approvals for and terms of which are being finalized. This funding, if approved, is expected to be drawn down in tranches by MTV beginning at the end of March 2022 and is expected to fund MTV into July 2022 providing the Company and the senior secured lenders additional time to negotiate a longer-term solution for MTV, including sourcing additional capital that will be required. If approvals from the respective parties are not obtained and funding not provided, it is expected that MTV will not have sufficient funds to operate beyond April 2022. In addition to the $11 million, the Company estimates that MTV will require at least an additional $10 million of capital during 2022.
MTV will continue to operate in a limited capacity during the ramp-up of Papomono by processing third-party ore. The Company’s review of the Don Gabriel open pit operation continues, and at the current time, it does not expect that Don Gabriel will be restarted in 2022. An analysis of Don Gabriel is ongoing and further information will be disclosed when available.
As a result of the current financial situation of MTV and the interruption in its operations, certain defaults of the senior secured debt facility have occurred and are continuing. The senior secured lenders have not provided a notice thereof to MTV and discussions continue to find a longer-term solution to the financing requirements of MTV.
The Company and MTV continue to preserve their cash resources during negotiations with MTV’s senior secured lenders and other creditors and thank all stakeholders for their continued support and patience.
Joe Phillips, COO, Retirement
Michael Staresinic, CEO of Three Valley Copper stated, “With his continual focus on execution, Joe has helped lead MTV to prioritize what is most important to its success, namely, the completion of the initial construction and development of the Papomono underground mine. Joe accomplished what he said he was going to do and after a distinguished career in mining, will be focusing his next stage of life on family and helping other companies grow through directorships and advisory positions. We are grateful for Joe’s hard work and dedication to MTV and are very pleased he will remain as a director of both Three Valley Copper and MTV to provide stewardship and important transitional continuity to the Papomono project as MTV ramps up production from Papomono.”
Over his 50-year career, Mr. Phillips has directed the construction, commissioning, and operation of 11 plants and mining operations, all of which met or exceeded their designed capacities, across 13 countries on 5 continents. He has held senior executive positions including Chief Operating Officer, Chief Restructuring Officer, Chief Development Officer, amongst others, across several US and Canadian mining companies. Mr. Phillips' retirement will be effective in the spring and a successor will be announced at a later date.
About Three Valley Copper
Three Valley Copper, headquartered in Toronto, Ontario, Canada is focused on growing copper production from, and further exploration of, its primary asset, Minera Tres Valles. Located in Salamanca, Chile, MTV is 95.1% 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 the Company, please visit www.threevalleycopper.com.