Atico Mining Partners with Trafigura on Credit Restructuring
VANCOUVER, British Columbia – Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) has made significant strides towards financial stability by entering into a term sheet with Trafigura PTE. LTD. This agreement represents an essential amendment and extension of Atico's existing secured credit agreement with Trafigura, illustrating the Company’s proactive approach to managing its financial commitments.
Understanding the Restructuring
The term sheet outlines the repayment structure for the outstanding principal amount of US$8.7 million. This will be settled in two installments, which are set for July and December 2025, demonstrating a clear roadmap for addressing its financial obligations. The revised terms also dictate that the outstanding principal will accrue interest at a rate linked to SOFR plus an additional 7.5%, which aligns with current market practices.
Expansion of Concentrate Purchase Agreement
In addition to restructuring its credit facility, the term sheet extends the commercial concentrate purchase contract between Atico and Trafigura. This extension plays a crucial role in ensuring that Atico can maintain a steady revenue stream from the El Roble mine, highlighting its commitment to producing and delivering significant quantities of high-quality concentrate over the next two years.
Expectations and Next Steps
The successful closing of these transactions is contingent on the completion of final documentation and regulatory approvals, expected to be finalized by a specified date. This level of thoroughness illustrates Atico's dedication to operating within best practices while seeking sustainable financial growth.
Company Growth and Future Prospects
Atico Mining is committed to growth through exploration and development in Latin America, focusing on copper and gold mining projects. The operation of the El Roble mine has been a cornerstone of its business, generating substantial cash flow, which supports ongoing ventures, including the development of the high-grade La Plata VMS project in Ecuador.
Long-Term Strategic Vision
Additionally, Atico is actively seeking opportunities for acquiring advanced-stage projects, further diversifying its portfolio. This growth strategy, alongside the secured agreement with Trafigura, is expected to provide robust support to He company's financial framework, encouraging future exploration initiatives and operational enhancements.
Leadership and Investor Relations
The leadership team at Atico, led by CEO Fernando E. Ganoza, is focused on steering the company towards new heights. With an investor relations strategy emboldened by transparent communication, the company ensures that stakeholders are kept informed of significant developments and strategic decisions.
Company Contact Information
For investors and interested parties seeking more information, they can reach out to:
Igor Dutina
Tel: +1.604.729.5765
Frequently Asked Questions
What is the purpose of the term sheet with Trafigura?
The term sheet outlines the terms for restructuring Atico's existing credit facility with Trafigura, enabling more manageable repayment terms.
How much principal amount remains outstanding?
Atico has an outstanding principal amount of US$8.7 million that will be repaid in two installments.
What is the interest rate on the outstanding principal?
The outstanding principal will accrue interest at a rate of SOFR plus 7.5%.
What does the extension of the concentrate purchase contract mean for Atico?
The extension ensures a continued revenue stream for Atico from the El Roble mine, securing a contract for the next two years for the concentrate produced.
How can investors contact Atico for more information?
Investors can contact Igor Dutina at +1.604.729.5765 for inquiries regarding the company and its operations.
