Atico secures $95m Trafigura loan for La Plata project build
TSX-V-listed Atico Mining Corporation has entered into a new secure project finance facility worth $95-million with commodities trader Trafigura to facilitate the construction and development of the La Plata gold and copper project, in Ecuador.
Atico also entered into a subscription agreement with an affiliate of Trafigura for a private placement of $16.4-million.
The company will issue a convertible debenture with a face value of $16.4-million to the debenture holder, which is convertible into the company's shares at a price of $0.22 apiece.
CEO and director Fernando Ganoza says the financing package for the La Plata project is the result of a competitive review process that assessed several alternatives aimed at finding the best value for shareholders.
"Given our decade-long relationship with Trafigura and their deep knowledge of the La Plata project, this result was both competitive and a natural fit. Following extensive due diligence, this investment signifies a strong vote of confidence in the quality of our asset.
"The financial flexibility provided by this package allows us to strengthen our balance sheet while simultaneously funding all necessary pre-construction activities. We are thrilled to advance responsibly towards construction, develop Ecuador’s next gold and copper mine, and create significant value for all our stakeholders," Ganoza states.
