Atico Mining Corporation (ATY) has acquired the remaining 40 per cent of the issued and outstanding shares of Compañia Minera La Plata S.A. (CMLP).
CMLP owns the concessions comprising the La Plata Project.
The acquisition was completed pursuant to a share purchase agreement with Toachi, Atico and certain shareholders of CMLP. As a result of the acquisition, CMLP is now a wholly-owned subsidiary of Toachi.
Toachi acquired the remaining 40 per cent ownership interest in CMLP for an initial cash payment of US$7,000,000 to be paid on the closing date and three installments of US$1,000,000 payable upon each anniversary 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.
Atico 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 favourable environment for increased international investment into the mining sector.
On August 5th, Ecuadorian President Guillermo Lasso invited mining executives to launch a concrete strategy on mining policies for Ecuador, presented as Executive Decree #151.
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.
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 President Lasso's intentions to reactivate the Ecuadorian economy through job creation and attracting large investments in the mining sector."
Atico is a growth-oriented company, focused on exploring, developing and mining copper and gold projects in Latin America.
Atico Mining Corporation (ATY) is up 7.69 per cent and is trading at C$0.49 at 12:37 pm PT.