Atico Announces Closing of US$16.4 Million Convertible Debenture Private Placement and Settles Legacy Liabilities

Atico Mining Corporation has closed a previously announced financing package totaling US$111.4 million. The capital structure includes a US$95 million secured project finance facility and a US$16.4 million secured convertible debenture, both provided by Trafigura PTE. Ltd.

Concurrently, the company executed a shares-for-debt transaction, issuing approximately 16.15 million common shares to Trafigura to settle US$2.5 million of existing debt. The convertible debenture fully repaid the Existing Trafigura Credit Agreement and the outstanding Dundee Corporation debenture, valued at approximately US$6.98 million.

Net proceeds of US$16.0 million from the debenture will fund pre-construction activities at the La Plata project in Ecuador, targeting a construction-ready state for Q1 2027. The convertible debenture carries a 5-year maturity, a 7.0% cash interest rate, and a conversion price of US$0.22 per share, representing a 40% premium to the September 28, 2026 VWAP. Management states the company is now fully funded for near-term La Plata pre-construction, marking a significant balance sheet deleveraging milestone.

Atico Mining Corporation (ATY) has closed its financing with Trafigura, a development that de-risks the balance sheet and removes near-term refinancing pressure. The transaction includes the repayment of the Dundee debenture and the Trafigura credit agreement, eliminating legacy liabilities and simplifying the capital structure.

The move follows the company's Sept 29 announcement and was priced into the stock, which traded flat to slightly down post-closing. However, the delayed La Plata construction timeline, now set for Q1 2027 rather than H2 2026, introduces execution risk. This delay extends the cash burn period before La Plata generates revenue, partially offsetting the benefit of the financing.

Atico Mining Corporation is a producing mining company focused on copper and gold. Its flagship asset is the El Roble Mine in Colombia, an underground copper-gold operation with a capacity of approximately 1,000 tons per day. The company’s growth asset is the La Plata Project in Ecuador, a volcanogenic massive sulfide copper-gold-zinc-silver project with a planned capacity of approximately 850 tons per day that is currently in the pre-construction phase. The company’s strategy involves leveraging cash flows from El Roble to fund the development of La Plata, targeting a multi-asset portfolio in Latin America. Management is led by CEO Fernando E. Ganoza, who brings extensive experience in Latin American mining and finance.