Atico Announces Amendment and Extension of US$10 Million Credit Facility

Rhea-AI Summary

Atico Mining (TSX.V: ATY | OTCQX: ATCMF) has extended its US$10 million credit facility with Trafigura PTE. The maturity date has been pushed from August 8, 2024, to July 31, 2026. The new agreement includes a structured repayment schedule with varying installments from January 2025 to July 2026. The outstanding principal will bear interest at a rate of SOFR plus 7.5%.

Atico Mining is focused on copper and gold projects in Latin America, operating the El Roble mine and developing the La Plata VMS project in Ecuador. This credit facility extension provides the company with additional financial flexibility to support its growth-oriented strategy in the region.

Positive

• Extension of US$10 million credit facility to July 31, 2026, providing improved financial flexibility
• Structured repayment schedule allowing for better cash flow management
• Continued partnership with major trading firm Trafigura, potentially indicating confidence in Atico's operations

Negative

• Increased interest rate on the credit facility (SOFR plus 7.5%), potentially leading to higher finance costs

VANCOUVER, British Columbia, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTCQX: ATCMF) is pleased to announce that it has entered into an amendment and restatement agreement with Trafigura PTE. LTD. (the “Lender”) to amend the US$ 10 million credit agreement entered into with the Lender in February 2022 (see Atico’s press release dated February 9, 2022), by extending the maturity date of the credit facility from August 8, 2024, to July 31, 2026, with the following principal repayment schedule:

1. US$ 650,000 due on January 31, 2025, and April 30, 2025;
2. US$ 700,000 due on July 31, 2025;
3. US$ 950,000 due on Oct 31, 2025, January 31, 2026, and April 30, 2026; and
4. US$ 5,150,000 due on July 31, 2026;

The outstanding principal will bear interest at a rate of SOFR plus 7.5%.

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. For more information, please visit www.aticomining.com.

ON BEHALF OF THE BOARD

Fernando E. Ganoza
CEO
Atico Mining Corporation

Trading symbols: TSX.V: ATY | OTCQX: ATCMF

Investor Relations
Igor Dutina
Tel: +1.604.633.9022

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ‘‘U.S. Securities Act’’), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

Cautionary Note Regarding Forward Looking Statements

This announcement includes certain “forward-looking statements” within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation the use of net proceeds, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to maintain its interest in and/or explore and develop the Company’s mineral projects; uncertainty of meeting anticipated program milestones for the Company’s mineral projects; and other risks and uncertainties disclosed under the heading “Risk Factors” in the prospectus of the Company dated March 2, 2012 filed with the Canadian securities regulatory authorities on the SEDAR+ website at www.sedarplus.com

FAQ

What is the new maturity date for Atico Mining's (ATCMF) US$10 million credit facility?

The new maturity date for Atico Mining's US$10 million credit facility has been extended to July 31, 2026.

What is the interest rate on Atico Mining's (ATCMF) extended credit facility?

The outstanding principal on Atico Mining's extended credit facility will bear interest at a rate of SOFR plus 7.5%.

What is the repayment schedule for Atico Mining's (ATCMF) extended US$10 million credit facility?

The repayment schedule includes US$650,000 due on January 31 and April 30, 2025; US$700,000 due on July 31, 2025; US$950,000 due on Oct 31, 2025, January 31, and April 30, 2026; and a final payment of US$5,150,000 due on July 31, 2026.

What are Atico Mining's (ATCMF) main projects mentioned in the press release?

Atico Mining operates the El Roble mine and is developing the high-grade La Plata VMS project in Ecuador.