Atico Mining closes US$16.4 million private placement financing
Atico Mining Corp. [ATY-TSXV, ATCMF-OTCQX] has announced the closing of a US$16.4 million convertible debenture private placement as well as a shares-for- debt transaction with Trafigura PTE Ltd.
Both transactions were announced in a September 29 2026 press release in which the company unveiled details of a US$95 million secured project finance facility with Trafigura that will be used to facilitate construction and development of the company’s La Plata VMS project in Ecuador.
Atico said it issued the debenture in return for the advance of approximately US$12.48 million and the conversion of approximately US$3.52 million owing under an existing Trafigura credit agreement for an aggregate consideration of US$16 million. The principal amount of the convertible debenture, including the converted loan amount, is convertible into common shares of Atico at a conversion price of US$0.22 per common share.
Under the debt settlement agreement, Atico has issued 16.1 million common shares, valued at US$0.1548 per share to settle US$2.5 million worth of debt under an existing Trafigura credit agreement.
On Friday, Atico shares rose 2.32% or $0.005 to 22 cents. The shares trade in a 52-week range of 42 cents and 14.5 cents.
Atico is focused on copper and gold projects in Latin America. The company generates cash flow via the El Roble mine in Colombia and is developing the high grade La Plata VMS project. Atico, through its subsidiary Toachi Mining Inc. of Canada owns all the shares of an Ecuadorian company named Compania Minera La Plata S.A. (CMLP), which is the legal owner of the La Plata concessions.
The La Plata property consists of two mining concessions, La Florida and Loma del Tigre, which cover 2,300 hectares and is located 85 kilometres southwest of the capital city of Quito.
A feasibility study dated July, 2024, forsees average annual production of 9.71 million pounds of copper, 15,929 ounces of gold, 226,299 ounces of silver and 13.25 million pounds of zinc in concentrates over an 8.1-year mine life. The company said the process plant will nominally treat 850 tonnes per day.
The total capital cost for the project is estimated at US$141.7 million, including pre-production capital of US$91 million.
A mineral reserve statement dated July 5, 2023, says probable reserves stand at 2.51 million tonnes of 3.51% copper equivalent (CuEq) (2.28 g/t gold, 30.41 g/t silver, 1.59% copper, 0.36% lead and 2.18% zinc. That amounts to 128,790 of gold, 1.83 million ounces of silver, 78.5 million pounds of copper, 14.9 million pounds of lead, and 107.5 million pounds of zinc.
Total indicated mineral resources are estimated at 2.3 million tonnes at 2.98 g/t gold, 40 g/t silver, 2.13% copper, 0.49% lead and 3.05% zinc. On top of that is an inferred resource of 0.4 million tonnes at 1.75 g/t gold, 38 g/t silver, 0.96% copper, 0.41% lead, and 2.29% zinc.