Atico Mining Corporation Completes Acquisition of Remaining 40% Interest in La Plata Project in Ecuador and Provides Country Update
August 20 2021 - 11:41AM
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTCQX: ATCMF) is pleased to announce that its wholly-owned
subsidiary, Toachi Mining Inc. (“Toachi”), has acquired the
remaining 40% of the issued and outstanding shares (the “Purchased
Shares”) of Compañia Minera La Plata S.A. (“CMLP”), which owns the
concessions comprising the La Plata project. The acquisition was
completed pursuant to a share purchase agreement (the “Share
Purchase Agreement”) dated the date hereof (the “Closing Date”)
among Toachi, Atico and certain shareholders (the “Sellers”) of
CMLP (the “Acquisition”). As a result of the Acquisition, CMLP is
now a wholly-owned subsidiary of Toachi.
Pursuant to the Share Purchase Agreement, Toachi
acquired the remaining 40% ownership interest in CMLP for an
initial cash payment of US$7,000,000 on the Closing Date and will
pay three installments of US$1,000,000 (each, an “Installment”)
upon each anniversary of the Closing Date for three years, for an
aggregate purchase price of US$10,000,000. A portion of the
Purchased Shares will be subject to pledge agreements with each of
the Sellers, whereby such pledged shares will be released over
three years upon payment of each Installment.
The Company is very pleased with this
transaction as it consolidates ownership of a project it has
already committed to advancing through production. While at the
same time, the Ecuadorian government is taking positive steps
towards creating a favorable environment for increased
international investment into the mining sector.
Country Update
On August 5th, the Ecuadorian President
Guillermo Lasso invited mining executives to launch a concrete
strategy on mining policies for Ecuador, presented as the Executive
Decree #151 (“the Mining Decree”). The Mining Decree serves to
define a clear framework that will attract more mining investment
and reaffirms the government’s support towards existing responsible
mining projects in Ecuador. The Mining Decree defines
specific actions including:
- Creation of a favourable investing
environment through legal certainty in mining investments
- Acceleration of permitting and
bureaucratic steps
- Inter-institutional collaboration
to fight illegal mining and promote legal and responsible
mining
Alain Bureau, Atico’s President commented on the
meeting: "This Mining Decree is a solid commitment by the
country’s executives with precise timing and deliverables
representing the President Lasso's intentions to reactivate the
Ecuadorian economy through job creation and attracting large
investments in the mining sector. The La Plata project has been
identified as a priority project by President Lasso while Atico has
reaffirmed its commitment to bring La Plata to production within
this government’s term."
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
CorporationTrading symbols: TSX.V: ATY | OTCQX: 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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