Atico Announces US$95 Million Project Finance Facility and US$16.4 Million Convertible Debenture Private Placement for a Total of US$111.4 Million

The proposed financing would support La Plata construction and debt repayment while adding secured obligations and potential share dilution.

Rhea-AI Summary

Atico Mining (ATCMF) signed agreements for a US$111.4 million financing package with Trafigura for its La Plata project in Ecuador.

The package comprises a US$95 million secured construction facility and a US$16.4 million secured convertible debenture to be issued to a Trafigura affiliate for a US$16.0 million advance. Facility borrowings will bear interest at Adjusted Term SOFR plus 7.5%; debenture principal is convertible into Atico shares at US$0.22 per share. Atico expects to use part of the debenture proceeds to repay existing debt and begin pre-construction work.

Atico also agreed to issue 16,149,870 shares to settle US$2.5 million of existing Trafigura debt. The debenture placement and share-for-debt settlement are expected to close around October 13, 2026, subject to conditions including TSX-V approval. The first facility advance is expected afterward.

6 points · 2 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

2 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.US$95 million secured facility will be available for La Plata construction and development after drawdown conditions are met. 3.2× market cap
• Major point. Forward-looking: it has not happened yet and may not happen.US$16.0 million advance is expected from issuing the US$16.4 million convertible debenture. 54% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.US$2.5 million of existing Trafigura debt is set to be settled through a share issuance. 8.5% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Atico expects to repay approximately US$3.5 million of existing Trafigura debt with debenture proceeds. 12% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Atico expects to repay approximately US$6,980,551 outstanding under its 12.0% Dundee debenture. 24% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Atico expects to use debenture proceeds to begin pre-construction at La Plata.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.US$95 million facility adds secured borrowing at Adjusted Term SOFR plus 7.5% annually. 3.2× market cap
• Major point. Forward-looking: it has not happened yet and may not happen.US$16.4 million debenture adds secured debt, with a US$16.0 million advance after an original issue discount. 56% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Debenture principal converts at US$0.22 per share, creating potential dilution despite a stated 40% premium to the September 28, 2026, 20-day VWAP.
• Moderate point. Forward-looking: it has not happened yet and may not happen.16,149,870 new shares at approximately US$0.1548 each will settle US$2.5 million of Trafigura debt, diluting holders. 8.5% of market cap
• Moderate pointThe placement and debt settlement remain subject to TSX-V approval; facility drawdowns require satisfaction of conditions.

4 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Debenture interest is 7.0% annually if paid in cash or 10.0% if paid in shares.
• Minor point. Forward-looking: it has not happened yet and may not happen.Early debenture repayment carries a 3% first-year fee, declining to 2% in year two and 1% thereafter.
• Minor point. Forward-looking: it has not happened yet and may not happen.US$712,500 and US$328,000 in cash advisory fees are subject to TSX-V approval.
• Minor point. Forward-looking: it has not happened yet and may not happen.Advisory fees also include 1,589,147 new shares at approximately US$0.1548 each, subject to TSX-V approval.

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(All amounts expressed in US dollars, unless otherwise stated)

VANCOUVER, British Columbia, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) is pleased to announce the Company’s entrance into a US$95 million secured Project Finance facility with Trafigura PTE. Ltd. (“Trafigura”) to facilitate the construction and development of the Company’s La Plata project (the “Project Finance Facility”) and the entrance into a subscription agreement for the issuance of a secured convertible debenture with a face value of US$16.4 million to an affiliate of Trafigura via a non-brokered private placement (the “Debenture Agreement”).

Fernando E. Ganoza, CEO and Director, commented, “This financing package for the La Plata project is the result of a competitive review process which assessed several alternatives aimed at finding the best value for our 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.” Mr. Ganoza continued, “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.”

Project Finance Facility

Compañía Minera La Plata S.A. (“CMLP”), as borrower, and the Company and Toachi Mining Inc., as guarantors, and Trafigura, as lender, have entered into a definitive credit agreement (the “Credit Agreement”) pursuant to which the Project Finance Facility will be made available.

Under the terms of the Credit Agreement, following satisfaction of customary conditions precedent, Trafigura will make available to CMLP US$95 million in one or more drawdowns that will be used to finance the construction and development of the Company’s La Plata project in Ecuador, or as otherwise agreed upon by Trafigura. Drawdowns under the Project Finance Facility will be available for approximately 2.5 years following the earlier of (i) commencement of construction, and (ii) March 31, 2027, and will ultimately mature 7 years thereafter. The amount advanced to CMLP will bear interest at a rate equal to Adjusted Term SOFR plus 7.5% per annum.

The Credit Agreement includes terms and conditions customary in secured financing transactions of this nature, including customary financial covenants. The Credit Agreement provides for a parent guarantee from the Company, which parent guarantee will be released once the La Plata project achieves completion, a guarantee from Toachi Mining Inc. and security from the obligors over all assets relating to the La Plata project.

Convertible Debenture Financing

The Company and an affiliate of Trafigura (the “Debenture Holder”) have entered into a definitive subscription agreement (the “Subscription Agreement”) providing for the issuance by the Company of a convertible debenture (the “Convertible Debenture”) with a face value of US$16.4 million to the Debenture Holder, which principal amount is convertible into the Company’s common shares (the “Common Shares”) at a conversion price of US$0.22 per Common Share. The conversion price represents a premium of 40% to the 20-day VWAP of the closing price of the common shares on September 28, 2026.

Pursuant to the terms of the Subscription Agreement, following satisfaction of customary closing conditions, the Company will issue the Convertible Debenture in consideration for an advance of US$16.0 million by the Debenture Holder, accounting for the original issue discount on the Convertible Debenture.

The Convertible Debenture will mature on the date that is 5 years and one day from issuance. Interest on the Convertible Debenture is calculated and payable quarterly and accrues at a rate of 7.0% per annum if interest payments are made in cash, or 10.0% per annum if interest payments are made in Common Shares. Any repayment in Common Shares will be at an issue price determined with reference to the market price of the Common Shares at the time of repayment and will be subject to the prior approval of the TSX-V.

Pursuant to the terms of the Convertible Debenture, the Company may, at its option, repay the Convertible Debenture, in whole or in part, subject to an early redemption fee on the amount prepaid equal to 3% in the first year after the execution of the Convertible Debenture, 2% in the second year after the execution of the Convertible Debenture and 1% in each year thereafter. Furthermore, the Company has the ability to force the conversion of up to 25% of the principal amount up the Convertible Debenture on four separate occasions if the volume-weighted average trading price of the Common Shares over a 20-day trading period (“VWAP”) exceeds a specified threshold, which threshold increases after each successive forced conversion, commencing at 130% of the applicable VWAP and increasing to 140%, 150% and 160% of the applicable VWAP thereafter. The Common Shares underlying the Convertible Debenture are subject to a four-month and one-day hold period from the closing date of the Private Placement, in accordance with applicable securities laws.

The proceeds from the issuance of the Convertible Debenture are expected to be used by the Company (i) to repay approximately US$3,500,000 of the outstanding principal amount owing under the Existing Trafigura Credit Agreement (as defined below), of which approximately US$6.0 million remains outstanding; (ii) to repay all of the Company’s outstanding indebtedness under the amended and restated 12.0% unsecured subordinated debenture of the Company issued to Dundee Corporation on December 16, 2025, of which approximately US$6,980,551 remains outstanding; (iii) to initiate pre-construction activities at the La Plata project; and (iv) for general corporate purposes or as otherwise determined by the Company.

Shares for Debt Transaction

The Company and Trafigura have also entered into a debt settlement agreement (the “Debt Settlement Agreement”) to settle, via the issuance of Common Shares, a portion of the debt outstanding under the credit agreement (the “Existing Trafigura Credit Agreement”) dated February 8, 2022 (as amended on May 4, 2023, August 5, 2024, April 8, 2025 and June 27, 2025) among, inter alia, the Company, as borrower, and Trafigura, as lender (the “Shares for Debt Transaction”).

Pursuant to the Debt Settlement Agreement, the Company will issue 16,149,870 Common Shares, at a deemed issue price of approximately US$0.1548 per Common Share, in full and complete settlement and satisfaction of US$2.5 million of the debt outstanding under the Existing Trafigura Credit Agreement. Upon repayment of the Existing Trafigura Credit Agreement in cash and shares as described above, no further amounts will be owing thereunder.

The transactions described herein are subject to customary closing conditions, including the approval of the TSX-V. The Private Placement is expected to close concurrently with the Shares for Debt Transaction on or about October 13, 2026, with the first advance under the Credit Facility expected to occur sometime thereafter.

Advisors

Ventum Financial Corp. (“Ventum”) acted as financial advisor to Atico in connection with the Project Finance Facility and Convertible Debenture Financing. Subject to the approval of the TSX-V, the Company will pay Ventum an advisory fee of 0.75% (US$712,500) in cash in connection with the Credit Facility and an advisory fee of 3.5% in connection with the Convertible Debenture, 2% ($328,000) of which will be paid in cash and 1.5% of which will be paid via the issuance of 1,589,147 Common Shares at a deemed issue price of approximately US$0.1548 per Common Share.

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, including without limitation statements regarding the terms, consummation and timing of the transactions described herein; the expected benefits of the transactions described herein, if any; use of net proceeds; closing conditions and TSX-V approvals; commissions payable in respect of the Credit Facility and Private Placement, if any; optionality of interest payments under the Convertible Debenture; the sufficiency of the Credit Facility for funding the Company’s La Plata project to commercial production; the timing, terms and occurrence of repayment of the Company’s existing indebtedness; the Company’s expectations for future exploration, development and production efforts; the Company’s pursuit of additional acquisition of advanced stage opportunities; generation of cash flow from the El Roble mine; and the timing and occurrence of future construction and/or production at the La Plata project, 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. The assumptions upon which the forward-looking statements herein are based, include, but are not limited to, that all required third party contractual, regulatory and governmental approvals will be obtained for the development, construction and production of its properties, there being no significant disruptions affecting operation, permitting, development, expansion and power supply proceeding on a basis consistent with the Company’s current expectations, currency exchange rates being approximately consistent with current levels, certain price assumptions for copper, gold and silver, prices for and availability of fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels, production forecasts meeting expectations, the accuracy of the Company’s current mineral resource and reserves estimates, labor and materials costs increasing on a basis consistent with the Company’s current expectations, assumptions made and judgments used in engineering and geological interpretation, that additional financing sources will be available on reasonable commercial terms in order for the Company to make scheduled repayments of principal, interest, and any applicable premiums on its outstanding indebtedness. Important factors that could cause actual results to differ materially from the Company’s expectations include, among others: the inherent risks involved in exploration, development and construction of mineral properties, 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 Company's Management's Discussion and Analysis (“MD&A”) for the year ended December 31, 2025, its most recently filed interim MD&A and in the Company’s Annual Information Form (“AIF”) dated September 4, 2024, filed with the Canadian securities regulatory authorities on the SEDAR+ website at www.sedarplus.com and as available on the Company's website for further details.

Except as required by law, the Company does not assume the obligation to revise or update these forward-looking statements after the date of this announcement or to revise them to reflect the occurrence of future unanticipated events

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much financing did Atico Mining arrange for the La Plata project?

Atico signed agreements for a US$111.4 million package comprising a US$95 million secured project finance facility with Trafigura and a US$16.4 million secured convertible debenture to a Trafigura affiliate. Issuing the debenture is expected to provide a US$16.0 million advance after an original issue discount.

At what price can Atico Mining’s new debenture convert into shares?

The US$16.4 million principal is convertible into Atico common shares at US$0.22 per share. That conversion price represents a 40% premium to the 20-day volume-weighted average closing price of the shares on September 28, 2026.

What are the payment terms of Atico Mining’s convertible debenture?

The debenture will mature five years and one day after issuance. Interest accrues at 7.0% annually if paid in cash or 10.0% if paid in shares, and is calculated and payable quarterly. Atico may repay it early, subject to a fee that starts at 3% of the amount prepaid in the first year.