Three Valley Copper Announcement –

TORONTO, June 13, 2022 (GLOBE NEWSWIRE) — (TSXV: TVC) (TVCCF) Three Valley Copper Corp. (“Three Valleys Copper“or the”Company”) announced today that Minera Tres Valles SpA (“MTV”), the Company’s 95.1% copper mining subsidiary, has commenced reorganization proceedings by filing for judicial restructuring proceedings (“JRP”) in Chile to protect itself from creditors in order to give MTV a new opportunity to seek a long-term financing solution to ensure the continuity of MTV’s operations. This is similar to filing for creditor protection under the Companies Creditors Arrangement Act in Canada.

After careful consideration of all available alternatives following extensive consultation with its advisors, the Company and MTV have determined that it is in MTV’s best interests to file for creditor protection under the JRP. .

The initial court order sought should provide for a stay of creditors’ claims and the exercise of contractual rights providing the necessary protection to allow MTV to continue to focus on providing a long-term financial partner that will encourage its creditors to restructure their debts leading to a secure financial base to expand MTV’s business.

With this announcement, MTV expects its underground contractor for the Papomono mine to demobilize immediately and all processing of ore from third-party miners to be temporarily halted. The Papomono infrastructure built to date is expected to remain stable for the next 3-6 months and MTV plans to continue producing copper cathodes from existing heap leach material until August 2022.

To date, Anglo American Marketing Limited and a fund managed by Kimura Capital (the “Main lendersto MTV) have not reached an agreement among themselves to further support MTV in the future and no longer term capital has been found. The Company is not encouraged by the latest dialogue with the Principal Lenders and believes that financial support from the Principal Lenders is unlikely to be available.

MTV has launched a comprehensive care and maintenance program alongside the JRP filing that will likely result in the layoff of over 200 direct employees, leaving 15 remaining to operate the plant and other necessary functions. In doing so, MTV expects that upon receipt by the Chilean courts of the initial court order (in approximately 2-3 weeks), MTV will be able to extend its cash resources through August 2022.

If the initial court order is not granted, it is expected that MTV will be forced to liquidate or be sold, which could negatively impact the Company’s ability to recover all or part of the Company’s investment in MTV. The public company, Three Valley Copper, is expected to continue operations even if a liquidation event occurs at MTV. If MTV succeeds in restructuring its existing debt and securing additional financing, there will likely be material dilution of the Company’s ownership interest in MTV, including the possibility that the Company will no longer hold majority control of MTV.

The filing of a JRP is an Event of Default under the Senior Secured Credit Agreement between MTV, the Principal Lenders and the Company. Due to MTV’s current financial condition, certain defaults of the senior secured credit facility have occurred and are continuing. Although the primary lenders did not notify MTV, they expressly reserved their rights.

The Company will provide an additional update on the JRP as the application progresses.

About Three Valley Copper

Three Valley Copper, headquartered in Toronto, Ontario, Canada, is focused on producing copper from its main asset, Minera Tres Valles. Located in Salamanca, Chile, MTV is 95.1% owned by the Company and MTV’s principal assets are the Minera Tres Valles mining complex and its 46,000 hectares of exploration land. For more information about the company, please visit

Caution Regarding Forward-Looking Information

Certain statements contained in this press 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”, “plan”, “intend” and similar expressions are intended to identify forward-looking statements. In particular, but without limiting the foregoing, this press release press releases contain forward-looking statements regarding: expected cash flows and capital resources; the Company’s ability to continue as a going concern; MTV’s ability to meet the terms of its existing credit facility and other material agreements; progress of ongoing projects, expectations regarding the JRP and the effects of any potential order, and expectations regarding debt restructuring and additional financing.

Although TVC believes that forward-looking statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions were used in making the forward-looking statements, including: the availability of certain consumables (including water) and services and the prices of electricity, sulfuric acid and other key supplies; anticipated labor and material costs and available supplies; certain tax rates, including the allocation of certain tax attributes, being applicable to MTV; the continued availability of quality management; the expected ability to repay MTV’s indebtedness; the JRP is a procedure available to MTV; and MTV will be able to maintain sufficient staff to continue processing operations.

Actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements if the assumptions underlying the forward-looking statements prove incorrect or if one or more risks or other factors materialize, including: (i ) possible variations in rating or recovery rates; (ii) copper price fluctuations and uncertainties; (iii) delays in obtaining government approvals or funding; (iv) risks associated with the mining industry generally (for example, operational risks associated with development, exploration and production; delays or changes in plans for exploration or development projects or capital expenditures; the uncertainty of mineral reserve estimates and projections, production, costs and expenses; and labor, health, safety and environment) and risks associated with the industries of other portfolio companies generally; (v) the performance of the counterparty to the ENAMI contract; (vi) risks associated with investing in emerging markets; (vii) general economic, market and business conditions; (viii) market volatility which would affect the ability to enter or exit investments; (ix) fluctuations and uncertainties in commodity prices and exchange rates; (x) risks associated with catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or the outbreak of a public health pandemic or other public health crisis , including COVID-19; (xi) the risks disclosed under the heading “Risk Management” in TVC’s management report for the period ended December 31, 2021; and (xii) the risks disclosed under “Risk Factors” or incorporated by reference in TVC’s Annual Information Form dated March 3, 2021. Forward-looking statements speak only as of the date hereof, unless otherwise stated, and the Company undertakes no 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 US Investors Regarding Estimates of Measured, Indicated and Inferred Mineral Resources

This press release may use the terms “measured”, “indicated” and “inferred” mineral resources. Historically, while these terms were recognized and required by Canadian regulations, they were not recognized by the United States Securities and Exchange Commission (the “SECOND”). The SEC has adopted amendments to its disclosure rules to modernize resource property disclosure requirements for issuers whose securities are registered with the SEC under the Securities and Exchange Act of 1934, as amended (the “Exchange Law”). These amendments came into effect on February 25, 2019 (the “SEC Modernization Rules“, the date of compliance with the SEC Modernization Rules. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes “Measured”, “Indicated” and “Inferred” mineral resource estimates. Additionally, the SEC amended its definitions of “proved mineral reserves” and “probable mineral reserves” to be substantially similar to the corresponding definitions of the Canadian Institute of Mining, Metallurgy and Petroleum, as required NI 43-101. Investors are cautioned that “Inferred Mineral Resources” involve great uncertainty as to their existence and their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will pass one day to a higher category Under Canadian rules, resource estimates s inferred minerals cannot form the basis of feasibility studies or other economic studies. US investors are cautioned not to assume that any part or all of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. US 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 more information:

Michel Staresinic
President and CEO
Such. : (416) 943-7107
E : [email protected]

Renmark Financial Communications Inc.
Joshua Laver: [email protected]
Tel: (416) 644-2020 or (212) 812-7680

Source: Three Valley Copper Corp.

Neither the 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 press release.


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