Atico Mining Announces Proposed Debenture Amendment and Restatement with Dundee

On December 16, 2025, Atico Mining Corporation announced a proposed amendment and restatement of its unsecured convertible debenture agreement with Dundee Corporation. This agreement pertains to a principal balance of $6,500,000 USD, which was originally due in December 2025. The key terms of the amendment include: - The principal amount of the debenture has been restated to $6,612,192 USD, reflecting the original principal plus potential accrued interest or fees. - The maturity date of the debenture has been extended by two years, from December 2025 to December 2027. - The interest rate remains at 7.0% per annum, payable quarterly. - In connection with this amendment, Atico will issue 4,500,000 common share purchase warrants to Dundee Corporation. Each warrant is exercisable at C$0.18 per share for a period of 24 months from the issue date (i.e., until December 2027). - The amendment is subject to customary closing conditions and TSX Venture Exchange approval.

This news is materially positive for Atico Mining. The company has been facing significant financial strain, as evidenced by a working capital deficit of $13.5 million (as of September 30, 2025) and a relatively low cash balance of $4.88 million. The original convertible debenture of $6.5 million USD (approximately C$8.9 million at current exchange rates) was due in December 2025, representing an immediate and substantial liquidity obligation.

By extending the maturity of this debenture by two years, Atico has averted a potential default or the need for a highly dilutive emergency financing at unfavorable terms to meet this imminent payment. This provides the company with crucial breathing room to focus on its operational improvements at the El Roble mine and advancing the La Plata project without the immediate pressure of this debt repayment.

However, this financial relief comes at a cost. The issuance of 4,500,000 new warrants at an exercise price of C$0.18 per share is dilutive. With the current share price at C$0.22, these warrants are in-the-money, meaning their exercise is likely, which would increase the number of outstanding shares and dilute existing shareholders. This adds to an already substantial pool of in-the-money warrants from previous financings. The original debenture's conversion price of $0.559 USD (approx. C$0.76) was well out of the money; these new warrants represent a significantly lower and currently in-the-money strike price.

Despite the dilution, the primary material impact of this news is the deferral of a critical debt obligation, which significantly de-risks the company's short-term financial stability. Without this amendment, Atico would have been in a far more precarious position.

Atico Mining Corporation (TSX.V: ATY, OTCQX: ATCMF) is a Canadian mining company focused on the acquisition, exploration, development, and operation of copper-gold projects in Latin America.

Flagship Project: El Roble Mine, Colombia - Description: El Roble is an operating underground copper-gold mine, 90% owned by Atico Mining through its subsidiary Minera El Roble S.A. - Operations: The mine has a processing capacity of 1,000 tonnes per day, producing copper-gold concentrate. - Reserves: As of March 12, 2024, Proven and Probable Reserves stood at 828,000 tonnes grading 2.49% copper and 2.20 g/t gold. - Life of Mine (LoM): The estimated LoM is relatively short, extending only to Q1 2027, making ongoing exploration and resource replenishment critical. - Royalties Dispute: The mine has been subject to a long-standing royalty dispute with the National Mining Agency (NMA) of Colombia. An arbitration ruling on March 7, 2025, required Minera El Roble to back pay approximately $29 million USD in copper royalties since 1994, adjusted for inflation and interest. After previous payments, about $10.7 million USD remained payable as of May 2025, under a payment plan. - New Mining Title: On May 26, 2025, Atico signed a new 30-year mining title for El Roble with the NMA, significantly de-risking operations and allowing the sale of previously pledged concentrate to reduce liabilities.

Development Project: La Plata Project, Ecuador - Description: La Plata is a high-grade VMS (Volcanogenic Massive Sulphide) deposit, 100% owned by Atico through its subsidiary Toachi Mining Inc. - Status: The project is in the advanced permitting stage, with the company progressing towards obtaining its environmental license and other permits to become "construction ready." - Permits Achieved: Key milestones include obtaining a Water Use Permit (October 1, 2025) and completing the Environmental Consultation Process (September 3, 2025). - Investment Protection: An Investment Protection Agreement (IPA) was signed on September 17, 2025, safeguarding a $157.9 million USD investment, providing legal and tax stability, and international arbitration for disputes. - Employment Impact: Expected to generate significant direct and indirect employment during construction and operation phases.