VANCOUVER, British Columbia, April 10, 2025 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the "Company" or "Atico") (TSX.V: ATY | OTC: ATCMF) is pleased to announce that representatives from the National Mining Agency ("NMA"), joined by the Governor of the Department of Choco and the Mayor of El Carmen de Atrato, have publicly declared that a new 30-year mining title will be granted to Minera El Roble.
Following more than 18-months of negotiations with the Company, the NMA has reached a decision and, during a press conference, revealed that it will grant a new 30-year mining permit to Minera El Roble in the context of the preference right stated in the decree 2477 from 1986. This step marks an important milestone as Atico is expected to once again have a long-term title at its operating mine upon the NMA granting formal title.
Among the information released by the NMA it was included that the new contract will fall under the current law for mining titles in Colombia, Law 685 from 2001, and will have all the requirements in it. It will also have additional contractual compensation fees for the Colombian State and a community relations expense, which the Company has been committed to in a discretionary way over the years.
Atico currently holds approximately 6,500 wet metric tonnes of unsold concentrate in inventory as a security and guarantee to the NMA. At recent metal prices, the approximate value of this concentrate is US$2000 per dry metric tonne. The announcement of the NMA decision to grant a new title includes transferring the pledge on concentrate to future production until the obligation with the Agency is fully repaid. The Company intends to use the sale proceeds of the newly unencumbered concentrate to significantly reduce its liabilities.
Furthermore, the Company has signed a new amendment to its existing facility agreement with Trafigura announced in a previous press release dated August 8th, 2024. Atico has committed to making a final principal payment, under the current terms, on April 30th. Following this, the Company has agreed to fully settle the outstanding balance of the facility by June 30th. This amendment will be secured by unsold and unpledged concentrates inventory as collateral.
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.
Cautionary Note Regarding Forward Looking Statements
This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. Such forward-looking statements herein include, but are not limited to, statements regarding the grant of a new 30-year mining title by the NMA, the lifting of the existing pledge on unsold concentrate, the Company's intention to sell unsold concentrate and the intended use of net proceeds from such sale, the Company's commitment to make the final principal payment and settle the outstanding balance under its facility agreement, and the pledge of unsold concentrate inventory as collateral. The Company does not intend to and does not assume any obligation to update such forward-looking statements, other than as required by applicable law.
Forward- looking statements involve various known and unknown risks and uncertainties and are based on certain factors and assumptions that may cause the actual results, level of activity, production levels, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Important factors that could cause actual results to differ materially from the Company's expectations include but are not limited to 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; the Company's substantial reliance on the El Roble mine for revenues and uncertainty around renewal of title to the claims; uncertainty of meeting anticipated program milestones for the Company's mineral projects; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, Colombia, Ecuador or other countries in which the Company does or may carry on business; risks relating to mining title and surface rights and access; uncertainties and risks related to carrying on business in foreign countries; currency exchange rate fluctuations; fluctuations in metal prices; risks associated with the Company's outstanding debt; and other risks and uncertainties disclosed under the heading "Risk Factors" in the Annual Information Form of the Company dated September 4, 2024 filed with the Canadian securities regulatory authorities on the SEDAR+ website at www.sedarplus.com.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company's mining operations; that all required third party contractual, regulatory and governmental approvals will be obtained for the development, construction and production of its properties; the Company's ability to sell unsold concentrate at a price approximately consistent with current market prices; permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations; no material adverse change occurring in the market price of commodities; currency exchange rates being approximately consistent with current levels; forecast mine economics; that mining operations will function and the mining products will be completed in accordance with management's expectations and achieve their stated production outcomes; and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.
