Atico Mining Restructures Loan with Trafigura for Future Growth
Atico Mining Corporation's Loan Restructuring with Trafigura
Atico Mining Corporation (TSX.V: ATY, OTC: ATCMF) has successfully executed a loan amendment with Trafigura PTE. LTD. to restructure its existing credit facility. The substantial loan of US$8.7 million will now be repaid over two installments, designed to ease the pressure on the company's finances while enabling continued operations and growth.
Details of the Loan Amendment
As part of the amendment, Atico Mining will repay the principal in two parts: an initial payment of US$2.7 million is due in the near future, while a follow-up payment of US$6 million is scheduled for late next year. The credit agreement stipulates that the outstanding amount will accrue interest at a competitive rate, linked to SOFR plus a margin of 7.5%, reflecting the manageable nature of this arrangement.
Extension of Concentrate Purchase Contracts
Moreover, the company has negotiated an extension of its commercial concentrate purchase contract with Trafigura for an additional two years. This ensures the purchase of all concentrate produced from the El Roble mine, guaranteeing a minimum annual target of 32,000 dry metric tons. This agreement not only stabilizes Atico's market position but also secures a revenue stream critical for operational continuity.
About Atico Mining
Atico Mining is recognized for its focus on growth in the mining sector, particularly in copper and gold within Latin America. The company’s operations are primarily based in Colombia, where it runs the El Roble mine. The mine is a significant contributor to its revenue, demonstrating Atico's ability to generate robust cash flow that supports further exploration and mining initiatives.
Future Prospects for Atico Mining
As Atico Mining advances its operations, it is also actively developing its La Plata VMS project in Ecuador. This high-grade project is poised to become a key asset that will enhance the company’s portfolio. Additionally, Atico is exploring other advanced opportunities to further strengthen its market presence and growth strategy.
Meet the Leadership Team
The strategic direction of Atico Mining is underscored by its leadership. Fernando E. Ganoza serves as CEO, bringing a wealth of experience in the mining industry. Under his guidance, the company is positioned to navigate market challenges and leverage growth opportunities effectively. The investor relations team, led by Igor Dutina, is also dedicated to maintaining transparency and communication with stakeholders.
Frequently Asked Questions
What is the significance of the loan amendment with Trafigura?
The loan amendment allows Atico Mining to restructure its debt, enabling manageable repayments while securing key commercial terms that bolster its operational strategies.
How will Atico Mining utilize the restructured loan?
The restructured loan will provide the company with liquidity to fund ongoing operations and developmental projects, enhancing its growth prospects.
What is the El Roble mine's role in Atico Mining?
The El Roble mine is essential to Atico Mining's cash flow generation, supporting operational sustainability and growth initiatives.
What projects is Atico Mining currently exploring?
Besides maintaining the El Roble mine, Atico is actively developing the La Plata VMS project in Ecuador and evaluating other acquisition opportunities in the market.
Who leads Atico Mining Corporation?
Atico Mining Corporation is led by CEO Fernando E. Ganoza, with a dedicated team focused on effective management and communication with investors.
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