Atico Mining Corporation (ATY) has entered a credit agreement with Trafigura Ptd. Ltd. and certain subsidiaries for US$10 million.
Atico has also received a non-binding proposal from Trafigura to finance the La Plata Project construction for future off-take.
The principal will bear interest at a rate of London Interbank Offered Rate (LIBOR) plus five per cent for the first two years. Then will move to a rate of LIBOR plus seven and a half per cent afterwards.
The credit agreement has a term of 30 months and includes the standard terms and conditions.
This new financing, along with internally generated cashflows, has strengthened Atico’s financial position.
The agreement is tied to the company’s objective of securing flexible solutions to protect its shareholders.
Fernando E. Ganoza, CEO of Atico, commented,
“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.”
Atico has also granted Trafigura certain rights regarding future financing of the exploration, development, and mining of the La Plata Project.
Atico Mining Corporation (ATY) is up 5.128 per cent and is trading at $0.41 per share as of 10:08 a.m. EST.