Atico Announces US$10 Million Credit Facility and Non-Binding Agreement for Construction Finance for the La Plata Project in Ecuador
February 09 2022 - 8:15AM
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTCQX: ATCMF) is pleased to announce that it has entered into a
secured definitive credit agreement (the “Credit Agreement”)
between the Company, Trafigura PTE. LTD. (the “Lender”) and certain
subsidiaries of the Company for the principal sum of US$10 million
(the “Principal”) and has received a non-binding proposal from the
Lender (the “Proposal”) to finance La Plata construction against
future off-take.
“With access to capital provided by the Lender
along with internally generated cashflows, the Company has
significantly bolstered its financial position while also
negotiating non-binding terms for construction finance for the La
Plata Project. This achievement is directly tied to our objective
of securing flexible financing solutions with competitive terms to
protect the upside for our shareholders,” said Fernando E. Ganoza,
CEO. “We are now in an excellent position to execute on our set
objectives for this year to deliver a feasibly study and initiate
full permitting process on the La Plata Project, while continuing
to aggressively explore both the La Plata and El Roble projects to
unlock further value from the respective land packages.”
Pursuant to the terms of the Credit Agreement,
the Lender will advance to the Company the principal sum that will
be used to, amongst other things, fund work on the Company’s La
Plata Project in Ecuador and for general working capital purposes.
The Credit Agreement has a term of 30 months and includes standard
terms and conditions customary in secured financing transactions of
this nature. The principal will bear interest at a rate of LIBOR
plus 5% for the first 24 months and then at a rate of LIBOR plus
7.5% thereafter.
In addition to the non-binding terms set forth
in the Proposal, the Company has granted the Lender certain rights
with respect to the future financing of the exploration,
development and mining of the Company’s La Plata Project.
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 its 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 | 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, including without limitation the
delivery of a Feasibility study and initiating full permitting
process on the La Plata Project; unlocking further value of the
Company’s land packages, the use of the principal sum and
statements regarding the proposal for construction finance for the
La Plata Project 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. Readers should not place undue reliance on
forward-looking statements, which speak only as of the date
made.
Forward-looking information and statements
contained in this press release are based on our opinions,
estimates and assumptions in light of our experience and perception
of historical trends, current conditions and expected future
developments, as well as other factors that we currently believe
are appropriate and reasonable in the circumstances. These
opinions, estimates and assumptions include but are not limited to:
the completion of satisfactory due diligence by the Lender with
respect to any construction finance for the La Plata Project, the
ability and willingness of the parties to negotiate and settle the
final terms for financing the La Plata Project construction; that
mutually acceptable terms can be agreed to, including the principal
sum for finance of the La Plata Project construction; and the
conditions to closing will be satisfied, including necessary
regulatory approvals. Despite a careful process to prepare and
review the forward-looking information and statements, there can be
no assurance that the underlying opinions, estimates and
assumptions will prove to be correct.
Important factors that could cause actual
results to differ materially from the Company’s expectations
include the Lender not moving beyond the due diligence stage with
respect to the Proposal; the parties being unable to agree to the
final terms of the financing for the construction of the La Plata
Project; the risk that the conditions to completion of the
financing for the construction of the La Plata Project will not be
satisfied; any event, change or other circumstance that could give
rise to the termination of the Proposal and any construction
financing for the La Plata Project will occur; receipt of any
regulatory approvals for the construction financing for the La
Plata Project; 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 management's discussion and
analysis of the Company for the nine months ended September 30,
2021 filed with the Canadian securities regulatory authorities on
the SEDAR website at www.sedar.com. Although we have attempted to
identify important risk factors that could cause actual results to
differ materially from those contained in forward-looking
information and statements in this press release, there may be
other risk factors not presently known to us or that we presently
believe are not material that could also cause actual results or
future events to differ materially from those expressed in such
forward-looking information in this press release.
The forward-looking statements contained in this
release represent our expectations as of the date of this release.
We disclaim any intention or obligation or undertaking to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required under
applicable securities laws.
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