Atico Mining Provides an Update on the Royalty Dispute with the Colombian Government
Atico Mining has received an unfavorable ruling in its royalty dispute with Colombia's National Mining Agency (NMA) regarding the El Roble property. The tribunal ordered the company to pay approximately US$29 million in back copper royalties dating from 1994, adjusted for Colombian inflation and interest.
The company has already paid approximately US$12 million (estimated at US$15 million when adjusted) through an ongoing Payment Plan with the NMA. Atico currently holds about 6,500 wet metric tonnes of unsold concentrate as security, valued at approximately US$2000 per dry metric tonne at recent metal prices.
The ruling could significantly impact Atico's financial position, affecting its working capital and ability to meet existing and future financial obligations. The company is reviewing the decision with legal counsel and seeking clarification on several points with the Tribunal and NMA.
Atico Mining ha ricevuto una sentenza sfavorevole nella sua controversia sulle royalty con l'Agenzia Nazionale delle Miniere della Colombia (NMA) riguardante la proprietà di El Roble. Il tribunale ha ordinato all'azienda di pagare circa 29 milioni di dollari statunitensi in royalty sul rame arretrate risalenti al 1994, adeguate per l'inflazione colombiana e gli interessi.
L'azienda ha già pagato circa 12 milioni di dollari statunitensi (stimati in 15 milioni di dollari quando adeguati) attraverso un Piano di Pagamento in corso con la NMA. Atico detiene attualmente circa 6.500 tonnellate metriche umide di concentrato invenduto come garanzia, valutato a circa 2000 dollari statunitensi per tonnellata secca ai recenti prezzi dei metalli.
La sentenza potrebbe avere un impatto significativo sulla posizione finanziaria di Atico, influenzando il suo capitale circolante e la capacità di soddisfare obbligazioni finanziarie esistenti e future. L'azienda sta esaminando la decisione con un legale e cercando chiarimenti su diversi punti con il Tribunale e la NMA.
Atico Mining ha recibido un fallo desfavorable en su disputa sobre regalías con la Agencia Nacional de Minería de Colombia (NMA) respecto a la propiedad de El Roble. El tribunal ordenó a la empresa pagar aproximadamente 29 millones de dólares estadounidenses en regalías de cobre atrasadas desde 1994, ajustadas por la inflación colombiana y los intereses.
La empresa ya ha pagado aproximadamente 12 millones de dólares estadounidenses (estimados en 15 millones de dólares cuando se ajustan) a través de un Plan de Pago en curso con la NMA. Atico actualmente posee alrededor de 6,500 toneladas métricas húmedas de concentrado sin vender como garantía, valoradas en aproximadamente 2000 dólares estadounidenses por tonelada métrica seca a los precios recientes de los metales.
El fallo podría impactar significativamente la posición financiera de Atico, afectando su capital de trabajo y su capacidad para cumplir con obligaciones financieras existentes y futuras. La empresa está revisando la decisión con asesoría legal y buscando aclaraciones sobre varios puntos con el Tribunal y la NMA.
Atico Mining은 콜롬비아의 국가 광업청(NMA)과의 로열티 분쟁에서 불리한 판결을 받았습니다. 이 판결은 엘 로블레 소유지와 관련하여 회사에 1994년부터의 구리 로열티 약 2,900만 달러를 콜롬비아의 인플레이션과 이자를 반영하여 지급하라고 명령했습니다.
회사는 현재 진행 중인 NMA와의 지급 계획을 통해 약 1,200만 달러 (조정 시 약 1,500만 달러로 추정)를 이미 지급했습니다. Atico는 현재 약 6,500톤의 습식 메트릭 톤의 미판매 농축물을 담보로 보유하고 있으며, 최근 금속 가격에 따라 건조 메트릭 톤당 약 2,000달러로 평가됩니다.
이 판결은 Atico의 재무 상태에 상당한 영향을 미칠 수 있으며, 운영 자본과 기존 및 미래의 재무 의무를 충족할 수 있는 능력에 영향을 줄 수 있습니다. 회사는 법률 자문과 함께 결정을 검토하고 있으며, 법원 및 NMA와 몇 가지 사항에 대한 명확성을 요청하고 있습니다.
Atico Mining a reçu un jugement défavorable dans son litige sur les redevances avec l'Agence Nationale des Mines de Colombie (NMA) concernant la propriété d'El Roble. Le tribunal a ordonné à l'entreprise de payer environ 29 millions de dollars américains en arriérés de redevances sur le cuivre depuis 1994, ajustés pour l'inflation colombienne et les intérêts.
L'entreprise a déjà payé environ 12 millions de dollars américains (estimés à 15 millions de dollars lorsqu'ils sont ajustés) par le biais d'un plan de paiement en cours avec la NMA. Atico détient actuellement environ 6 500 tonnes métriques humides de concentré invendu en garantie, évalué à environ 2000 dollars américains par tonne métrique sèche selon les prix récents des métaux.
Le jugement pourrait avoir un impact significatif sur la position financière d'Atico, affectant son fonds de roulement et sa capacité à respecter ses obligations financières existantes et futures. L'entreprise examine la décision avec un conseiller juridique et cherche des éclaircissements sur plusieurs points auprès du Tribunal et de la NMA.
Atico Mining hat in seinem Streit um die Royalties mit der Nationalen Bergbehörde Kolumbiens (NMA) eine ungünstige Entscheidung erhalten, die die El Roble-Liegenschaft betrifft. Das Tribunal ordnete an, dass das Unternehmen ungefähr 29 Millionen US-Dollar an rückständigen Kupferroyalties zu zahlen hat, die bis 1994 zurückreichen, angepasst an die kolumbianische Inflation und Zinsen.
Das Unternehmen hat bereits etwa 12 Millionen US-Dollar (geschätzt auf 15 Millionen US-Dollar nach Anpassung) im Rahmen eines laufenden Zahlungsplans mit der NMA gezahlt. Atico hält derzeit etwa 6.500 nasse metrische Tonnen unverkauften Konzentrats als Sicherheit, das zu etwa 2000 US-Dollar pro trockener metrischer Tonne zu den aktuellen Metallpreisen bewertet wird.
Das Urteil könnte sich erheblich auf die finanzielle Lage von Atico auswirken und das Betriebskapital sowie die Fähigkeit, bestehenden und zukünftigen finanziellen Verpflichtungen nachzukommen, beeinflussen. Das Unternehmen prüft die Entscheidung mit rechtlichem Beistand und sucht Klarstellungen zu mehreren Punkten beim Tribunal und der NMA.
- Company has already paid US$12 million of the total royalty obligation
- Holds valuable concentrate inventory worth US$2000 per dry metric tonne as payment security
- Required to pay approximately US$29 million in back royalties, interest, and inflation adjustments
- Unfavorable arbitration ruling affecting working capital and financial position
- Uncertainty about ability to pay existing and future financial obligations
- Significant impact on company's liquidity due to large royalty payment requirement
VANCOUVER, British Columbia, March 10, 2025 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTCQX: ATCMF) announces that, further to the news release issued on December 29, 2021, regarding the royalty dispute concerning the El Roble property, the Center for Arbitration and Conciliation of the Bogotá Chamber of Commerce has reached a decision. The tribunal has ruled in favor of the National Mining Agency (“NMA”) ordering the Company’s subsidiary Minera El Roble to back pay copper royalties since 1994.
The ruling requires the Company to pay in Colombian pesos the equivalent of approximately US
As of the date of this ruling, Atico still holds approximately 6,500 wet metric tonnes of unsold concentrate in inventory as a security and guarantee to the Payment Plan with the NMA. At recent mental prices, the approximate value of this concentrate is US
The negative outcome of this ruling could be materially adverse to the Company as it affects its working capital and overall financial position while creating uncertainty on the Company’s ability to pay its existing and future financial obligations as they become due. The Company will continue to firmly pursue all possible solutions and will advise the market of any developments as they occur.
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 AIF of the Company dated September 4, 2024 filed with the Canadian securities regulatory authorities on the SEDAR+ website at www.sedarplus.com
FAQ
How much does Atico Mining (ATCMF) owe in royalty payments to Colombia's National Mining Agency?
What collateral does ATCMF have to secure the royalty payment to Colombia?
When was the royalty dispute ruling announced for Atico Mining's El Roble property?
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