Atalaya Mining PLC Result of Appeal (0611G)
November 01 2018 - 8:25AM
UK Regulatory
TIDMATYM
RNS Number : 0611G
Atalaya Mining PLC
01 November 2018
1 November 2018
Atalaya Mining Plc.
("Atalaya" and/or the "Company")
Astor Management AG ("Astor") case ("Astor Case") update
Atalaya Mining Plc. (AIM:ATYM, TSX:AYM) the European mining and
development company, announces that judgment was handed down in the
Astor Case in the Court of Appeal earlier today.
The Court of Appeal confirmed the ruling from the High Court
made on 6 March 2017, which was announced by the Company on that
date.
In summary, the deferred consideration, as fully set out in the
Company's announcement of 2 November 2015 when it was first
notified of the claim ("Deferred Consideration"), payable to Astor
under the master agreement entered into in 2008 between inter alia
the Company and Astor ("Master Agreement"), did not start to become
payable when permit approval was granted for the Rio Tinto Copper
Project ("Proyecto Riotinto"). In addition, the intra-group loans
by which funding for the restart of mining operations was made
available to the Company's subsidiary, Atalaya Riotinto Minera S.L.
did not constitute a "Senior Debt Facility" so as to trigger
payment of the Deferred Consideration. Accordingly, the first
instalment of the Deferred Consideration has not fallen due.
While the Company is not in breach of any of its obligations,
the Master Agreement and its provisions remain in place.
Accordingly, other than up to US$10 million a year which may be
required for non-Proyecto Riotinto related expenses, Atalaya
Riotinto Minera S.L. cannot make any distribution or any repayment
of the money lent to it by its holding company and must apply any
excess cash to pay the Deferred Consideration, until this has been
paid in full.
The Company will not ask for permission to appeal and, as a
consequence, 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)) will be used to pay the Deferred
Consideration.
Alberto Lavandeira, CEO commented:
"The Company is pleased with the Court of Appeal's decision,
which confirmed it acted in accordance with the Master Agreement
and is not in breach of its obligations, as previously ruled by the
High Court of Justice. The Court's decision also sets out that in
the absence of a Senior Debt Facility, the Deferred Consideration
is only payable out of excess cash generated by Proyecto Riotinto.
The Company believes that this result now provides a level of
certainty around the position with regard to Astor now that the
appeal process has been concluded."
About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group.
It produces copper concentrates and silver by-product at its wholly
owned Proyecto Riotinto site in southwest Spain, which is also
undergoing a brownfield expansion. In addition, the Group has a
phased, earn-in agreement for up to 80% ownership of Proyecto
Touro, a brownfield copper project in the northwest of Spain which
is currently in the permitting stage. For further information,
visit www.atalayamining.com
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam +44 20 7680
Newgate Communications Lloyd/ Tom Carnegie 6550
+44 20 3170
4C Communications Carina Corbett 7973
------------------------------ ------------
Martin Davison / Henry
Canaccord Genuity (NOMAD Fitzgerald-O'Connor / James +44 20 7523
and Joint Broker) Asensio 8000
------------------------------ ------------
BMO Capital Markets (Joint Jeffrey Couch / Tom Rider +44 20 7236
Broker) / Michael Rechsteiner 1010
------------------------------ ------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCLLFFFLILLIIT
(END) Dow Jones Newswires
November 01, 2018 08:25 ET (12:25 GMT)
Atalaya Mining (LSE:ATYM)
Historical Stock Chart
From Apr 2024 to May 2024
Atalaya Mining (LSE:ATYM)
Historical Stock Chart
From May 2023 to May 2024