Atico Mining Announces Execution of Term Sheet with Trafigura to Restructure Outstanding Credit Facility

Rhea-AI Summary

Atico Mining (ATCMF) has entered into a term sheet with Trafigura to restructure its outstanding secured credit facility of US$8.7 million. The repayment will be made in two installments: US$2.7 million on July 25, 2025, and US$6 million on December 30, 2026. The outstanding amount will bear interest at SOFR plus 7.5%. Additionally, the companies extended their concentrate purchase agreement for two more years, with Trafigura continuing to purchase 100% of El Roble mine's concentrate production, subject to a minimum of 32kdm per year. The transaction's closing, expected by June 30, 2025, is subject to final documentation and TSX Venture Exchange approval.

Positive

• Debt restructuring provides extended repayment timeline until December 2026, improving short-term liquidity
• Secured continuation of concentrate purchase agreement with Trafigura for two additional years
• Guaranteed minimum purchase commitment of 32kdm per year provides stable revenue stream

Negative

• High interest rate of SOFR plus 7.5% on outstanding debt indicates significant financing costs
• Substantial debt burden of US$8.7 million remains on company's balance sheet
• Company remains dependent on single buyer (Trafigura) for all concentrate production

VANCOUVER, British Columbia, June 13, 2025 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) announces that, further to its press release dated June 9, 2025, it has entered into a term sheet with Trafigura PTE. LTD. (the “Trafigura”) regarding an amendment and extension of the Company’s existing secured credit agreement (the “Credit Agreement”) with Trafigura and certain subsidiaries of the Company, of which US$8.7 million remains outstanding (the “Principal Amount”).

Pursuant to the term sheet, the Principal Amount will be repaid in two instalments of US$2.7 million on July 25, 2025 and US$6 million on December 30, 2026. The outstanding Principal Amount will bear interest at a rate of SOFR plus 7.5%. In addition, the parties have agreed to an extension of the existing commercial concentrate purchase contract between the Company and Trafigura covering the purchase of 100% of the concentrate produced from the El Roble mine for two additional years, subject to a minimum tonnage of 32kdm per year.

Closing of the transactions is subject to finalization of definitive documentation, which will contain customary representations, warranties, covenants and conditions precedent to closing, including approval of the TSX Venture Exchange, and is expected to occur on or before June 30, 2025.

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: +1.604.729.5765

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

Cautionary Note Regarding Forward Looking Statements

This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”). These statements relate to future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “anticipates”, “believes”, “estimates”, “expects”, “confirm” and similar expressions, or the negatives of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this news release speak only as of the date hereof or as of the date specified in such statement. Specifically, this news release includes, but is not limited to, forward-looking statements regarding: the expected terms contained in the definitive documentation and the expected closing of the loan refinancing with Trafigura including the timing thereof.

Inherent in forward-looking statements are risks, uncertainties and other factors beyond Atico’s ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, risks associated with the Company’s outstanding debt, including amounts due and payable to each of Trafigura and Dundee Corporation (“Dundee”) on or before June 30, 2025 and December 30, 2025, respectively, or the ability to successfully amend and extend the Credit Agreement and the convertible debenture with Dundee; the availability and cost of funds; uncertainties relating to the closing of the Trafigura loan refinancing, including delays in obtaining or failure to obtain required approvals to complete the Trafigura loan refinancing; mining operations; market fluctuations in commodity prices; title risks and surface rights and access; changes in legislation; political instability; government or regulatory approvals; non-compliance with laws and regulations and compliance costs; environmental compliance; climate change; uninsured and uninsurable risks; water disposal, tailings and reclamation obligations; financing risks; risks associated with outstanding debt; global economic conditions; availability and costs of supplies; community relations; mineral reserve and mineral resource estimates; future production rates; labour relations; currency fluctuations; the Company may engage in hedging activities; infrastructure; exploration and development capital expenditures; social media and reputation; negative publicity; human rights; business objectives; concentrate sales risks; shortage of personnel; health and safety; pandemics, epidemics or infectious disease outbreak; physical security; conflicts of interest; claims and legal proceedings; information systems and cyber security; internal controls; violation of anti-bribery or corruption laws; competition; tax considerations; compliance with listing standards; enforcement of civil liabilities; financing requirement risks; market price volatility of Common Shares; and other risks and uncertainties related to the Company’s business and the Offerings, including those described in the Company’s public disclosure documents on SEDAR+ at www.sedarplus.ca. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements. Actual results and developments are likely to differ and may differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including but not limited to, (1) the successful completion of the Trafigura loan refinancing; (2) the Company’s ability to generate positive cash flows from ongoing operations at the El Roble Mine, including the ability to sell its mineral concentrates in inventory; (3) that all required third party contractual, regulatory and governmental approvals will be obtained for the development, construction and production of the Company’s properties, (4) there being no significant disruptions affecting operations, whether due to labor disruptions, supply disruptions, power disruptions, damage to equipment, non-renewal of title to the Company’s claims or otherwise, (5) permitting, development, expansion and power supply proceeding on a basis consistent with the Company’s current expectations, (6) currency exchange rates being approximately consistent with current levels, (7) certain price assumptions for copper, gold, zinc and silver, (8) prices for and availability of fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels, (9) production forecasts meeting expectations, (10) the accuracy of the Company’s current mineral resource and reserve estimates, (11) labor and materials costs increasing on a basis consistent with the Company’s current expectations, (12) matters related to the ongoing dispute with the National Mining Agency in Colombia, and (13) general marketing, political, business and economic conditions.

Forward-looking statements may be affected by known and unknown risks, uncertainties and other factors including without limitation, those referred to in the Offering Documents that may cause Atico’s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise any forward-looking statements, whether as a result of new information or future events or otherwise, except as may be required by law. If Atico does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

FAQ

What are the key terms of ATCMF's debt restructuring with Trafigura?

The US$8.7 million debt will be repaid in two installments: US$2.7 million on July 25, 2025, and US$6 million on December 30, 2026, with interest at SOFR plus 7.5%.

How long is Atico Mining's new concentrate purchase agreement with Trafigura?

The concentrate purchase agreement has been extended for two additional years, with Trafigura purchasing 100% of El Roble mine's production with a minimum of 32kdm per year.

When is the expected closing date for ATCMF's debt restructuring deal?

The transaction is expected to close on or before June 30, 2025, subject to final documentation and TSX Venture Exchange approval.

What is the interest rate on Atico Mining's restructured debt?

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

How much does Atico Mining (ATCMF) owe to Trafigura?

Atico Mining has an outstanding debt of US$8.7 million with Trafigura.