Atalaya Mining PLC AGM Statement (9591K)
July 13 2017 - 4:00AM
UK Regulatory
TIDMATYM
RNS Number : 9591K
Atalaya Mining PLC
13 July 2017
13 July 2017
Atalaya Mining plc
("Atalaya Mining" or the "Company")
AGM Statement
At Atalaya Mining's AGM to be held at 12.00pm (CEST) today at
the Rio Tinto Mine, La Dehesa s/n, Minas de Riotinto, 21660 Huelva,
Spain, Roger Davey, non-executive Chairman, will make the following
statement:
"2016 was a transformational year for your Company.
After declaring commercial production at the Riotinto Copper
Project ("Proyecto Riotinto") in February 2016, management
progressively increased processing capacity, reaching the nameplate
processing plant throughput rate of 9.5 Mtpa by December 2016.
Total capital costs were kept under control and came in below
the revised budget of US$164 million to achieve this throughput.
This confirmed Proyecto Riotinto as one of the lowest capital
intensity projects in the world, at this time.
In September 2016, the Company filed an updated Mineral Reserves
and Resources estimate for Proyecto Riotinto, which indicated a 12%
increase in contained reserves and extended the life of mine to
16.5 years.
To date, copper grades, recoveries and operating cash costs are
well within the forecast values and the estimated copper production
guidance for 2017 remains between 34,000 and 40,000 tonnes. Mining
operations continue to run according to plan, along with ongoing
rehabilitation works.
Near-mine exploration drilling is underway. The programme is
designed to confirm the lateral extension of Filon Sur as well as
the northern extension of the Atalaya pit. A total of 7,200 metres
have already been drilled at Filon Sur and at the Atalaya pit. An
in-fill drilling campaign of 4,400 metres at Cerro Colorado is also
under way targeting inferred resources with the objective of
increasing confidence levels and potential reclassification to the
indicated category.
The trial of the Astor case took place at the High Court of
Justice in London during January 2017, with judgement handed down
in March 2017. The High Court found that the Group was not in
breach of any of its obligations and the deferred consideration
under the master agreement entered into between the Company, Astor
and others (the "Master Agreement") did not start to become payable
when permit approval was granted for Proyecto Riotinto.
Accordingly, the first instalment of the deferred consideration had
not fallen due.
Notwithstanding this, the Court confirmed that the provisions of
the Master Agreement remain in place. As a consequence of this, the
Judgment requires that, in accordance with the Master Agreement,
Atalaya Riotinto Minera, S.L.U. must apply any excess cash (after
payment of operating expenses, sustaining capital expenditure, any
senior debt service requirements and up to US$10 million for
non-Proyecto Riotinto related expenses) to pay approximately
EUR43.9 million of the deferred consideration due to Astor under
the Master Agreement and the amount of EUR9.1 million payable under
the loan assignment. Both parties have applied for permission to
appeal to the Court of Appeal. It is likely that the applications
will be ruled on by Q3 2017 and if permission is granted that the
appeal hearings will take place in 2018.
In February 2017, the Company announced the exercise of an
option to acquire a 10% interest in Proyecto Touro, located in
northwest Spain. The acquisition of this brownfields copper project
is based on a staged earn-in process increasing from 10% up to an
80% interest once commercial production is declared. The permitting
process was initiated during Q1 2017, with submission to the
relevant authorities of the environmental impact study,
exploitation plan and rehabilitation plan. Geological,
hydrogeological and geotechnical studies have also been completed
and incorporated into the project designs.
In-fill and step-out drilling is ongoing across the property
with two RC drilling rigs and one DDH rig for a campaign totalling
7,900 metres. Resource modelling is well advanced based on both
historic and current knowledge of the deposit. Metallurgical test
work at feasibility study level was completed during 2016 with
modelling confirmed based on this latest information. Basic
engineering is progressing with a view to completing a capital and
operating cost estimate as part of a NI 43-101 technical report.
Long-lead items have been identified together with suppliers'
quotations.
The Group is actively focused on further growth opportunities,
as we build on the momentum we have achieved to date.
All of our successful activities and aspirations for the future
would not be possible without the dedicated and continuous support
of our management, staff and associates, and I offer my sincerest
thanks to all of them.
Last but not least, I extend my thanks to all of you, our valued
shareholders, for your continued support. We look to the year ahead
with growing confidence and optimism."
This announcement contains information which, prior to its
publication constituted inside information for the purposes of
Article 7 of Regulation (EU) No 596/2014.
Contacts:
Charlie Chichester
Newgate Communications / James Ash / James +44 20 7680
(Financial PR) Browne 6550
---------------------------- ------------------------------ ------------
Martin Davison
Canaccord Genuity (NOMAD / Henry Fitzgerald-O'Connor +44 20 7523
and Joint Broker) / James Asensio 8000
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Jeffrey Couch /
BMO Capital Markets (Joint Neil Haycock / +44 20 7236
Broker) Tom Rider 1010
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For further information on the Company's activities, visit
www.atalayamining.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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