Vancouver, British Columbia--(Newsfile Corp. - February 9, 2024) - Xiana Mining Inc. (TSXV: XIA.H) ("Xiana" or the "Company") reports that further to the Company's news release of March 8, 2021, we advise that the transfer of all its interest in Minera Altos de Punitaqui ("MAP") to Battery Mineral Resources Corp.("BMR"), following the exercise by BMR of the call option pursuant to which BMR has converted its leasehold interest into a direct ownership interest, for no additional consideration (BMR news release of March 8, 2021). As of the date of this news release the transfer of ownership has been completed, with BMR now holding a 100% ownership interest in MAP.
In addition, the Company reports the resignation of Timothy Moody as a director of the Company. The Company would like to thank Tim for all his support.
About Xiana Mining Inc.
During 2020, Xiana has suffered significant setbacks due to the COVID-19 pandemic. The Chilean government declared a state of emergency which lasted several months (news releases April 28, 2020 and May 29, 2020) which resulted in a significant decline in the copper price and deteriorating macroeconomic climate thus impacting the cash flow and profitability of MAP which in turn affected the production cycle at the operations. MAP elected to suspend material production and move to care and maintenance to ensure compliance with quarantine regulations and reduce further creditor claim exposure. Patrimony protection under Chilean law (news release June 1, 2020) was sought and approved by the 21st Civil Court of Santiago on May 29, 2020 allowing the Company to seek to reorganize its existing financial liabilities. During this period, the Company entered into a forbearance agreement with Bluequest Resources AG (news release July 20, 2020) in connection with a loan agreement dated October 24, 2018 as amended on July 29, 2019. The Company defaulted under the Bluequest loan agreement for failing to make the required interest payments when due and failing to comply with the financial covenants of the loan agreement. On October 14, 2020, received creditor and Chilean court consent with respect to the judicial reorganization agreement by the Company's wholly owned subsidiary, Minera Altos de Punitaqui (news release October 16, 2020). On November 24, 2020, the Company received notice, dated November 24, 2020, from subsidiaries of Glencore plc (Glencore) for Deferred Consideration payment of USD$10 million, which became due on November 13, 2020 as well as a further adjustment for late payment interest at a rate of LIBOR plus 4% on the outstanding amount. As at todays date the Company has failed to reach a settlement with respect to this outstanding debt. On March 8, 2021 the Company entered into an agreement with Minera BMR SPA (BMR Chile) a wholly owned subsidiary of Battery Mineral Resources Corp. (BMR) to acquire the Punitaqui mining complex. As consideration BMR will pay over a period of 6 years, MAP related debts, totaling US 25.9 million.
Xiana is engaged in the evaluation of producing and development stage mineral resource opportunities on an ongoing basis.
The Company's common shares have been suspended as a result of the Cease Trade Order ("CTO"). Trading in the Company's securities will be reinstated once the Company has completed the necessary filings, the CTO has been lifted, settlements with major creditors, and it has completed an application to the Exchange for reinstatement.
On behalf of the Board of Directors,
Anton (Tony) J. Drescher
Director
For further information please contact:
Anton (Tony) Drescher, Director
Telephone: +1 (604) 685-1017
E-mail: ajd@harbourpacific.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of applicable Canadian securities legislation, including without limitation statements concerning future plans and objectives or expected results in respect of mine optimization, cost reduction and profitability. Although Xiana believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Xiana can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and Xiana undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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