Battery Mineral Resources announced that its wholly owned subsidiary, ESI Energy Services, operating under the brand Ozzies, has completed a new senior secured financing arrangement with JPMorgan Chase Bank. The financing establishes a new long-term banking relationship for ESI and strengthens its capital structure.
The new financing includes a $6.0 million, four-year term senior secured loan, a $1.0 million revolving line of credit, and up to an additional $5.0 million equipment financing facility that the company expects to finalize with JPMorgan, subject to definitive documentation and customary closing conditions. Together, the facilities are expected to provide up to $12.0 million in financing capacity to support ESI’s operations, equipment expansion, and manufacturing capabilities. A portion of the new term loan proceeds was used to fully repay ESI’s existing credit facility with Fiera Enhanced Private Debt Fund LP.
Separately, Battery Mineral Resources announced it has granted 13,193,431 restricted share units under its Performance Share Unit and Restricted Share Unit Plan, including 9,033,443 units to CEO Laz Nikeas, 3,659,988 units to CFO Jennifer Fulton Anderson, and 500,000 units to Director Keith Spano. The units granted to Spano and Fulton Anderson vest in three equal annual installments beginning on the first anniversary of the grant date, while Nikeas’s units vest fully on the third anniversary. ESI, headquartered in Phoenix, Arizona, designs and manufactures specialized equipment for the renewable and conventional energy sectors, while Battery Mineral Resources also operates the Punitaqui Mining Complex, a copper, gold, and silver-producing mine in Chile’s Coquimbo region.
KEY QUOTE:
“This financing is an important validation of the business ESI has become, and we are pleased to have JPMorgan as our partner. ESI has delivered strong operating performance, profitability and cash generation over the past two years. The new financing strengthens our balance sheet, lowers our cost of capital, enhances our financial flexibility and positions us to continue investing in the growth of our ESI business.”
Laz Nikeas, Chief Executive Officer, Battery Mineral Resources
