Atico Mining Initiates Partnership Through Loan Facility with Export Development Canada
October 05 2020 - 8:45AM
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTC: ATCMF) is pleased to announce that it has entered into a USD
$2.5 million term loan (the "Facility") from Export Development
Canada ("EDC"). The Facility will provide the Company with enhanced
financial flexibility and contribute towards completion of the new
dry stack tailings project.
Fernando E. Ganoza, CEO, commented: "After
evaluating a number of different programs and an extensive due
diligence process, we are extremely pleased to have entered into a
strategic partnership with the EDC. The financial commitment from
EDC demonstrates their confidence in the Company and is the
beginning of a collaborative relationship aiding Atico’s growth.”
Mr. Ganoza continued, “this facility instantly provides
adjustability to the use of free cash flows from the El Roble mine,
giving us additional flexibility to accelerate new discoveries
through our exploration drill programs. All of this at an
exceptionally low cost of capital and without any dilution to our
shareholders."
Terms of the Facility
The Facility is repayable monthly over a
30-month term with certain prepayment options. It is subject to an
existing general security agreement with EDC and a debt service
coverage ratio covenant to be measured on an annual basis, based on
a ratio of a measure of earnings to interest expense and scheduled
principal payments. The Facility carries an interest rate of LIBOR
plus 3.5% and is payable monthly based on the proportional amount
outstanding.
About Export Development
Canada
EDC is a financial Crown corporation dedicated
to helping Canadian companies of all sizes to succeed on the world
stage. As international risk experts, we equip Canadian companies
with the tools they need – the trade knowledge, financing
solutions, equity, insurance, and connections – to grow their
business with confidence. Underlying all our support is a
commitment to sustainable and responsible business. For more
information and to learn how we can help your company, please
visit www.edc.ca.
About Atico Mining
Corporation
Atico is a growth-oriented Company, focused on
exploring, developing and mining copper and gold projects in Latin
America. The Company generates significant cash flow through the
operation of the El Roble mine and is developing it’s high-grade La
Plata VMS project in Ecuador. The Company is also pursuing
additional acquisition of advanced stage opportunities. For more
information, please visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. GanozaCEOAtico Mining
Corporation
Trading symbols: TSX.V: ATY | OTC: ATCMF
Investor RelationsIgor DutinaTel:
+1.604.633.9022
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 release.
No securities regulatory authority has either
approved or disapproved of the contents of this news release. The
securities being offered have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the
‘‘U.S. Securities Act’’), or any state securities laws, and may not
be offered or sold in the United States, or to, or for the account
or benefit of, a "U.S. person" (as defined in Regulation S of the
U.S. Securities Act) unless pursuant to an exemption therefrom.
This press release is for information purposes only and does not
constitute an offer to sell or a solicitation of an offer to buy
any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward Looking
Statements
This announcement includes certain
“forward-looking statements” within the meaning of Canadian
securities legislation. All statements, other than statements of
historical fact, included herein, without limitation the use of net
proceeds, are forward-looking statements. Forward- looking
statements involve various risks and uncertainties and are based on
certain factors and assumptions. There can be no assurance that
such statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from the Company’s expectations include
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; uncertainty of
estimates of capital and operating costs; the need to obtain
additional financing to maintain its interest in and/or explore and
develop the Company’s mineral projects; uncertainty of meeting
anticipated program milestones for the Company’s mineral projects;
the world-wide economic and social impact of COVID-19 is managed
and the duration and extent of the coronavirus pandemic is
minimized or not long-term; disruptions related to the COVID-19
pandemic or other health and safety issues, or the responses of
governments, communities, the Company and others to such pandemic
or other issues; and other risks and uncertainties disclosed under
the heading “Risk Factors” in the prospectus of the Company dated
March 2, 2012 filed with the Canadian securities regulatory
authorities on the SEDAR website at www.sedar.com.
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