The visit is part of the announcement of the Company’s operational reactivation, which consists of starting work in its Papomono Masivo underground project as well as reopening its Don Gabriel open pit mine.

The Minister of Mining, Baldo Prokurica, accompanied by the CEO of Minera Tres Valles, Luis Vega Muñoz, took a tour of the various site operational areas. In this opportunity, the Secretary of State learned about the structural projects that the Company has been developing to achieve the consolidation of its production.

The construction of Papomono Masivo is one of its consolidation and improvements in production projects, which seeks to implement an inclined block caving exploitation method, an innovative procedure within medium-scale mining operations nationwide that will optimize the Company’s underground mining operation.

Along with this project, Minera Tres Valles plans to reopen its Don Gabriel open pit mine which was temporarily halted at the beginning of this year as a result of the pandemic and low copper prices.

Regarding his visit, Minister Prokurica highlighted the “great effort that Minera Tres Valles has made to keep up with not only its own activity, but also the purchase of ore from small miners. Reviving this process that went through a dificult time when the copper price fell, and that today the Company has reoriented, generating new partners, and through a special effort is restarting to rehire labor.”

Along these lines, he added that “this is good news for the country and for the Coquimbo Region, that this company is doing well, which hires local labor and shows a great commitment toward the surrounding communities. Mining once again gives Chilean families an opportunity, especially in the post-pandemic period.”

While the CEO of Minera Tres Valles, Luis Vega Muñoz, thanked the Minister of Mining and the other regional authorities for their visit to the site, he took the opportunity to comment on the new phase the Company is entering into by saying, “we have just closed a reorganization agreement where the Company has restructured its debt with national suppliers, allowing us to execute our current structural projects. We are very close to starting developments at the Papomono underground mine. Our goal is to restart operations at the Don Gabriel mine next year; by doing so, we will eventually achieve nominal capacity at the crushing plant with the production from the two deposits.”

During the site tour, the Minister was accompanied by the Mayor of the Coquimbo region, Lucía Pinto, the Regional Mining Secretary, Roberto Vega, and other members of the executive and managerial staff of Minera Tres Valles, Rafael Pérez de Arce, Jorge Baraqui, Sebastián Cortés and Eduardo Reyes.

Awarding of Funds – PAMMA 2020

The activity closed with a symbolic ceremony awarding funds for 2020 to the Coquimbo region’s Training and Technology Transfer Program for ‘Small Artisanal Mining’ (‘PAMMA’ for its Spanish acronym).

With representatives present from the various mining groups and unions in the province of Choapa, Minister Prokurica symbolically awarded CLP$ 551,701,151 to finance the 121 individual projects assigned for this period.




Toronto, August 24, 2020 – (TSX: SRHI, SRHI.WT) – SRHI Inc. (the “Company” or “SRHI”) is pleased to announce that creditors for Minera Tres Valles SpA (“MTV”), the Company’s 70% owned producing copper mine in Salamanca, Chile, have approved a Judicial Reorganization Agreement (“JRA”) in Chile with support from 100% of the Lenders and 93% of the unsecured creditors.

“Through our restructuring efforts, MTV now has the ability to execute on the construction and expansion of its mining operations including the Papomono Masivo incline block caving underground mining project,” stated Michael Staresinic, President and Chief Financial Officer. “MTV’s senior lenders, shareholders and unsecured creditors all participated in finding a solution that is expected to drive both MTV and the Company to profitability and sustainability over the coming years.”

In May 2020, MTV filed a Judicial Restructuring Procedure (“JRP”) in Chile providing MTV protection from creditors to give itself sufficient time to complete its refinancing efforts to allow for the completion of the construction of its underground mine. The JRP is similar to creditor protection under the Companies’ Creditors Protection Act in Canada.

Emergence from the JRP process represents the culmination of efforts that were undertaken with MTV’s senior lenders (“Lenders”), Vecchiola S.A. (“Vecchiola”, a related party to MTV’s 30% minority shareholder) and other unsecured creditors. Subject to customary documentation, and the formalization of terms between MTV, the Lenders and the Company, the JRA provides MTV with the following:

SRHI Inc. to Provide $10 Million

  •  Up to $10 million secured second ranking debt to be financed from the Company’s cash resources (the “SRHI New Loan”)
  • Drawn down by MTV over the next 12 months
  • Principal and interest subordinated to the Lenders’ existing debt under the Facility Agreement (defined below) and New Senior Debt (defined below)
  • Expected payback beginning 2025
  • Fulfills (and will reduce, pro-rata) the Company’s $10 million corporate guarantee provided under the facility agreement (the “Facility Agreement”) entered into between the Lenders, MTV and the Company in December 2019
  • No dilution to the Company’s 70% equity holding of MTV

Vecchiola Voluntarily Converts over $5 million to Long-term Debt

  • Conversion to subordinated long-term debt, of 75% of amounts owed by MTV to Vecchiola, to be repaid only after all other amounts due to the Lenders and unsecured creditors are fully repaid

Lenders Amend Facility Agreement Terms and Commit to Additional $6 Million

  • Immediate release of $7 million of cash, currently restricted by the Lenders pursuant to the Facility Agreement, to support MTV’s operations – $2 million was already released to support MTV during the reorganization process
  • Extension of the Facility Agreement’s maturity by 12 months to December 2024
  • Extension of the Facility Agreement’s commencement for principal repayments by 12 months to begin March 31, 2022
  • Extension by 18 months of the requirement to pay 50% of interest under the Facility Agreement. Full interest payments begin March 31, 2022
  • Up to $6 million of new senior debt (“New Senior Debt”) to have substantially the same security and terms as currently contemplated in the Facility Agreement (with some amendments)
  • The New Senior Debt is to be made available to MTV, if needed, after SRHI has fully advanced the SRHI New Loan

Unsecured Creditors Convert Amounts Owed to Long-Term Debt

  • Approximately $19 million converted from accounts payable of MTV to long-term debt (“New Unsecured Debt”)
  • Principal and interest repayment grace period – first payment to begin March 31, 2022
  • 50% of New Unsecured Debt to be repaid in 13 quarterly payments beginning March 31, 2022
  • Remaining 50% of New Unsecured Debt to be repaid on June 30, 2025
  • Annual interest rate of New Unsecured Debt is 5%
  • Opportunity for accelerated prepayments

As part of the JRA, a creditors’ commission (the “Creditors’ Commission”) will be created to supervise the compliance with the JRA. The Creditors’ Commission is to be composed of two representatives of the Lenders and a third representative from the unsecured creditors, to be determined by the creditors of MTV. Each member of the Creditors’ Commission cannot be linked to the main business of MTV.

Under certain specific circumstances and for no longer than 5 days after the approval of the JRA, creditors can challenge the legality of the JRA. The Company and MTV do not expect any challenge to the legality of the JRA.

Specific to the offtake agreement between MTV and the offtake provider (one of the Lenders), MTV and the offtake provider have agreed and executed an increase to the fixed price portion originally agreed to in the offtake agreement from 25% to 40%. MTV has currently contracted to sell 40% of its expected copper cathode production at $2.90 per pound from August 2020 to July 2022. This stability of cash inflow for the next 2 years provides a degree of certainty for the business during its construction and production ramp up phases.

In addition, and subject to customary documentation, an amendment to the offtake agreement is expected to be implemented resulting in the acceleration of payment terms for the receipt of cash by MTV.

In noting the importance of this occasion, Luis Vega, Chief Executive Officer of MTV, stated, “This is a defining moment for MTV and I take great pride in the participation of all stakeholders – our employees, lenders, suppliers, customers, communities, business partnerships and supporters, without whom this day would not have been possible. In this process, all of us have made sacrifices to place this organization in the much stronger position it now enjoys. MTV values and appreciates the commitment all have shown in helping us reach this point.”

MTV will now devote its attention to finalizing the necessary documentation with the Lenders and the Company together with implementing the construction and development of the Papopmono Masivo underground mine. Papomono Masivo is expected to be completed in the fourth quarter of 2021 with initial ore production beginning by the third quarter of 2021.

For the remainder of 2020, MTV will be focusing on processing ore in its current inventory, increasing its tolling business and accelerating the processing of ore supplied by third-party miners. Beginning in 2021 and while maintaining its 2020 initiatives, MTV intends to reopen its Don Gabriel open pit mine for approximately 1 year while simultaneously constructing the Papomono Masivo underground mine.

About SRHI Inc.
SRHI is a publicly-listed company based in Toronto and its principal operating business is its 70% equity interest in the producing copper mine Minera Tres Valles in Salamanca, Chile. For more information about SRHI, please visit

Cautionary Statement Regarding Forward-Looking Information
Certain statements in this news 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”, “plans”, “intends” and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the foregoing, this news release contains Forward-Looking Statements pertaining to: the construction and expansion of mining operations including the Papomono Masivo incline block caving underground mining project, as well as the timing thereof and production therefrom; profitability of the Company and MTV and timing thereof; completion of the JRA and the JRP process and the terms thereof; expected timelines for drawdown and repayment of indebtedness of MTV; creation of the Creditors’ Commission and the composition thereof; expectations regarding the lack of challenge to the legality of the JRA; expected performance under the offtake agreement; expected implementation of a further amendment to the offtake agreement and the terms thereof; and MTV’s focus for the remainder of 2020 and the expected reopening of the Don Gabriel mine and the timing thereof.

Although SRHI believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including: that the JRA and the JRP process will be resolved as expected and on the terms currently agreed to; that the assumptions for future ore mined and copper cathode production together with future cash flows, including future copper prices, operating costs and capital expenditures remain materially accurate; there being no additional significant disruptions affecting the development and operation of MTV; and assumptions concerning general marketing, political, business and economic conditions.

Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize, including: (i) risks associated with the mining industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to mineral reserves, production, costs and expenses; and labour, health, safety and environmental risks) and risks associated with the other portfolio companies’ industries; (ii) risks associated with investments in emerging markets; (iii) general economic, market and business conditions; (iv) the successful challenge to the legality of the JRA; (v) the JRA not being implemented on the expected terms or subsequently complied with;; (vi) commodity price fluctuations and uncertainties; (vii) risks associated with catastrophic events, manmade disasters, terrorist attacks, wars and other conflicts, or an outbreak of a public health pandemic or other public health crises, including COVID-19; (viii) risk that MTV and/or the Company cease to be going concerns and the Company’s guarantee of the MTV debt is called and the related pledge is realized (ix) those risks disclosed under the heading “Risk Management” in SRHI’s Management’s Discussion and Analysis for the year ended December 31, 2019 and its first and second quarterly report of 2020; and (x) those risks disclosed under the heading “Risk Factors” or incorporated by reference into SRHI’s Annual Information Form dated March 24, 2020.

The Forward-Looking Statements speak only as of the date hereof, unless otherwise specifically noted, and SRHI does not assume any 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.

Investor contact information:
Michael Staresinic
President and CFO
(416) 943-7107
Source: SRHI Inc.





The third version of the “Coquimbo Open Mining Day”, organized by the Regional Secretary of the Ministry of Mines, had as one of its purposes, to establish cooperation and interaction instances in order to consolidate a productive and sustainable mining industry in the region.

On Thursday 12t h December, 2019, in the facilities of the Enjoy Hotel and Casino of Coquimbo, the “Open Mining Coquimbo 2019” convention took place, gathering people from local small, medium and large mining companies in order to improve the services and productive techniques associated to the industry.

After a day of informative talks and various exhibits from mining companies and enterprises that provide services to the industry, the closure dinning took place, instance that had the presence of the Mining Minister, Baldo Prokuriça. In this opportunity, three companies of the region were awarded with a recognition, being Compañía Minera Teck Carmen de Andacollo, Minera Los Pelambres y Minera Tres Valles.

In the case of Minera Tres Valles, the award given during the “Coquimbo Open Mining Day” distinguished the work made by Minera Tres Valles in Sustainability matter, which is bases in three main pillars, safety, environment and communities. Among the work done by the company, it stands out its development foundation, Fundación Tres Vales, the framework agreement with the local miners (which lends for free exploitation points in MTV ́s mining concessions), and the support for the development of the Santuario de la Naturaleza Raja de Manquehua- Poza Azul, which is an iconic site and it is a great heritage contribution for the county of Salamanca.

According to Sebastián Cortés, Sustainability Manager of Minera Tres Valles, this distinction “fills us with pride and strengthens our will to continue working for the development of our communities, establishing measures that contribute in a tangible way to their wellness and allow the generation of instances of growth through the strengthening of their capacities and resources. As a company we have the belief that a transparent and direct dialogue makes us forge confidence relationships that bring benefits to us and the local communities”.



On Thursday, December 12th, the representatives from Anglo American in Chile and the CEO of Minera Tres Valles executed the last contract of the financial package corresponding to the secured loan of US$ 45 million, funds that were officially received on December 19th

The financial package was announced by Sprott Resource Holdings Inc. in August 2019, when the mandate letter with Anglo American Marketing Limited (“AAMLUK”) and GAM Kimura Commodity Trade Finance Fund Limited (“Kimura”) was executed. This deal will provide MTV an important investment amount that will be key in the development and expansion of the company.

Through this financing package, Minera Tres Valles will start the Inclined Block Caving project for its underground mine deposit, Papomono, as well as fund the final costs of the chloride media leaching project.

MTV’s CEO, Luis Vega Muñoz, highlighted that the closing of this financing package “will allow Minera Tres Valles to optimize its production and strengthen the operation, capturing the high potential that our project has. Nowadays, the medium mining industry in Chile plays an important role in the country’s economy, and projects like ours prove that it is possible to produce in a responsible way through maintaining strong community relations and making investments in optimizing its processes.”





The National Miners Day celebration was jointly organized by Sonami and the Illapel Mining Association, having as special guests the Mining Minister, Baldo Prokuriça, and the Ministerial Regional Secretary, Roberto Vega.

By awarding the “San Lorenzo” prizes, the National Mining Society annually recognizes the players that produce a significant contribution to national mining activity. During 2019, this recognition was given to Minera Tres Valles for its contribution to promoting production in the region, through the optimization of processes and the building of a collaborative agreement with small-scale miners from the area.

The award was presented by Diego Hernández, president of Sonami, who highlighted the significance of delivering the San Lorenzo prizes to representatives of local small, medium and large scale mines. “The distinction awarded to Minera Tres Valles, as a medium-scale company, aims to highlight the absolute importance of this industry in Chile, for what it produces and exports, as well as for the contribution it makes in the places where it is located, as a creator of jobs and as a destination for local suppliers.”

As for the Minister of Mining, Baldo Prokuriça said that as a ministry “we wanted to celebrate Miners Day here in Illapel to award the people that are in different areas and levels of mining who give a better quality of life to many families, since without mining there is no prosperity, welfare or development.”

On this occasion, the Ministerial Regional Secretary of Mining, Roberto Vega, presented to Minera Tres Valles a distinction for “its contribution to small mining”, an effort that is based on promoting the supply chain through delivering shared extraction points, leasing mining rights and executing a purchasing agreement with local small-scale miners.

For Luis Vega, CEO of Minera Tres Valles, receiving “this recognition, as part of the celebration of San Lorenzo, fills us with pride as a Company, as we have strived to become a mining project with high standards in terms of operations, safety, sustainability, innovation, and the progression of our home turf. We appreciate this distinction that invites us to strengthen our current role in the territory and continue working for the development of the region and our country.”




Includes Prepayment Facility and Offtake Agreement for its Minera Tres Valles Copper Project


SRHI INC. COMPANY and its 70% owned subsidiary Minera Tres Valles (“MTV”) are pleased to announce the execution of an investment committee (“IC”) approved mandate letter with Anglo American Marketing Limited (“AAML”) and a fund under the investment management of Kimura Capital LLP (“Kimura” and together with AAML, the “Lenders”), to provide a US$45 million secured prepayment facility (“Facility”) and offtake agreement (“Offtake”) to be utilized for the expansion of the MTV copper project located in Chile.

“We are very excited to announce this significant financing package, and to commence on the final stage of our expansion plans,” stated Michael Harrison, Interim President and CEO of the Company. “This investment is a key part of the development of MTV, and has strategic importance for the future of the Company.”

“Kimura have been providing short term collateral backed lending to MTV since January 2017 and the expansion of the MTV project is an exciting opportunity with lots of potential and, as lenders, we are looking forward to a growing partnership with MTV and SRHI,” said Mike Fitzgerald, Portfolio Manager at Kimura.

“We are pleased to welcome AAML and continue working with Kimura as we enter the next phase of growth at the mine. The team at MTV has been working hard to advance our expansion plans and as the Facility moves to close, we will mobilize the underground development contractor,” stated Luis Vega, CEO of MTV.

The Facility will provide MTV with net new financing of US$25 million to further expand the Don Gabriel open pit mine, construct and develop the incline block caving method for the Papomono underground deposit and fund final costs associated with the salt leach project all of which are detailed in the Technical Report published in December 2018. An amount of US$5 million will also be used to repay debt financing previously provided by the Company to MTV.

Key Terms of the Facility and Offtake

  • US$45 million in principal with a 12 month availability period
  • Term of 4 years
  • Interest rate of 3-month USD LIBOR plus:
    — 8.00% per annum for up to 12 months depending on certain conditions
    — 6.25% per annum thereafter
  • Repayable in 12 equal quarterly instalments commencing the first month following the 12-month grace period commencing on the closing date
  • Early repayment flexibility
  • Copper price participation mechanism if LME cash price monthly average is above US$6,600/mt
  • The Lenders will have offtake rights to purchase up to 100% of copper cathode production at MTV
  • The Facility and Offtake remains subject to satisfaction of customary conditions, including:
  • Customary closing legal due diligence to the satisfaction of the Lenders;
  • Receipt of all necessary shareholder and regulatory approvals; and
  • Completion of formal documentation and perfection of security.
  • Three Keys Capital Advisors LLC and Next Meridian LLC acted as financial advisors to MTV in connection with the Facility and the Offtake.


About MTV
MTV is an operating mining complex located 300 kilometers northeast of Santiago, Chile in Region IV near the town of Salamanca. MTV comprises two main deposits: Papomono (underground) and Don Gabriel (open pit). The mine is currently operating and producing high-grade copper cathode. The mine has significant infrastructure in place with a crushing and processing plant with nameplate capacity of 7,000 and 6,000 tonnes per day, respectively. The plant is designed to produce up to 18,500 tonnes per annum of LME Grade 99.999% copper cathodes. For more information about MTV, please visit


SRHI acquires and grows a portfolio of cash-flowing businesses and businesses expected to cash flow in the natural resource sector. Based in Toronto, SRHI is part of the Sprott Group of Companies and seeks to deploy capital to provide our investors with exposure to attractive commodities. For more information about SRHI, please visit

About Anglo American
Anglo American is a leading global mining company whose products are the essential ingredients in almost every aspect of modern life. Its portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals that enable a cleaner, more electrified world and that meet the fast growing consumer-driven demands of the world’s developed and maturing economies. With people at the heart of its business, Anglo American uses innovative practices and the latest technologies to discover new resources and mine, process, move and market its products to customers around the world – safely, responsibly and sustainably.


About Kimura

Kimura Capital is a UK based investment Manager specialising in the global Commodity Trade Finance business. Kimura specialize in providing tailor-made financing solutions for small to medium commodity producers. Kimura can look at transactions across the globe in the agriculture, metals and energy sectors and have assembled an experienced team of commodity professionals.

For more information click here



Hydroprocess 2019 was jointly organized by the University of British Columbia, the University of Antofagasta, and the Chilean company, Gecamin.

The 11th International Seminar on Hydrometallurgical Processes, referred to as Hydroprocess 2019, was held from the 19 to the 21 of June at the Hotel Sheraton in the city of Santiago. It addressed principal innovations in hydrometallurgical processes for metals and nonmetals mining.

With close to 300 attendees and more than 70 technical speakers, the 2019 edition of the seminar spoke about the processes and challenges that arise in hydrometallurgy within the mining industry, making reference to developing new materials and technologies along with optimizing operations.

Eduardo Hasan Soto, Metallurgy Superintendent at Minera Tres Valles, was one of the 27 presenters who belongs to a mining operation that formed part of the Hydroprocess seminar. It was an opportunity to show the audience the scope of his research on “Copper Leaching from Sulfide Ore in Acidic-Chloride Media”, which highlighted the addition of salt to the copper extraction process.

Leaching in chloride media is a project that has been developed since 2015 by the Research and Development team at Minera Tres Valles. It has optimized the production process by decreasing sulfuric acid consumption and increasing copper recovery while shortening the reaction kinetic cycle. The salt leach project is currently in its implementation stage, which requires various reconditioning procedures in the agglomeration, solvent extraction and electro-obtention processes.

Minera Tres Valles has been one of the first companies to bet on developing the process of leaching with chloride media to extract copper. Its experienced research team and up-to-date facilities have made it become an important source of innovation for the Chilean mining industry, being a recurring destination for other companies that are in the planning stage of adding sodium chloride to their production process.

For Eduardo Hasan, “implementing this technology has positioned Tres Valles as a type of role model in the area of leaching copper sulfides by using sodium chloride as an oxidizing agent. Although sodium chloride leaching has research dating back from the 1990s, today there are only three companies that are in some stage of implementing this technology, Minera Tres Valles being one of them.

The merit of Tres Valles’ project stems from having developed this technological innovation with modest resources in comparison to large-scale mining companies (the project cost at BHP’s Spence mine was US$ 220 MM; the estimated cost of Minera Zaldívar is US$ 170 MM; while the cost of our project is valued at only US$ 7 MM). Additionally, all of our pilot and semi-industrial studies have been carried out by our own staff, forming a “know how” of interest to other medium-scale mining companies.




The group of 16 people was composed of social leaders and community members, as well as councilors and representatives from the Municipality of Salamanca.

Last Thursday, March 27th, Manquehua community members were given a tour of the Don Gabriel Open Pit operational area. This presented an opportunity where the community could discuss any feelings of disagreement or concern regarding the development of the deposit.

For the Neighborhood Council President, Viviana Varas, “this activity has had a positive impact; we left feeling considerably more at ease as neighbors, convinced that we have achieved something positive for the community. We came to an agreement that we want to work alongside the company in order to reach a state of tranquility as neighbors.”

Meanwhile, the Municipal Manager of the county of Salamanca, Victor Araya, highlighted that “these instances help to build trust, as many of the community’s concerns can be resolved through bettering communications between the Mining Company and the members themselves, and they get to see how they could be benefitted by working alongside one another.”

This site visit was part of the community development program implemented by Minera Tres Valles, where close working ties are cultivated with the community members that are directly affected by the Company.