VANCOUVER, British Columbia, Feb. 09, 2022 (GLOBE NEWSWIRE) -- 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.
www.aticomining.com.
https://www.globenewswire.com/news-release/2022/02/09/2381875/0/en/Atico-Announces-US-10-Million-Credit-Facility-and-Non-Binding-Agreement-for-Construction-Finance-for-the-La-Plata-Project-in-Ecuador.html