Atico Mining proposes debenture amendment with Dundee

Executive Summary

• Atico Mining Corp. has announced a proposed amendment and restatement of its existing debenture agreement with Dundee Corp., extending the maturity date to December 16, 2027.
• The restructuring involves the removal of the conversion feature, meaning the principal amount will no longer be convertible into company securities.
• As part of the transaction, Atico will issue one million non-transferable common share purchase warrants to Dundee, exercisable at a 30% premium to the market price.

Key Details

• Outstanding Principal: $6,612,192 (U.S.) remains outstanding on the original debenture issued on Dec. 16, 2020.
• Maturity Extension: The maturity date is extended to Dec. 16, 2027.
• Interest Rate: Interest on the outstanding principal will accrue at a rate of 12% per annum.
• Prepayment Rights: The company retains the right to prepay the entire outstanding principal and accrued interest at any time prior to maturity without penalty, subject to required notice.
• Security: The loan is supported by a guarantee from certain subsidiaries of Atico Mining.
• Conversion Feature Removed: Upon amendment and restatement, the principal amount is no longer convertible into securities of the company.
• Warrant Issuance: Atico will issue one million non-transferable common share purchase warrants to Dundee.
• Warrant Terms:
  • Each warrant is exercisable to acquire one common share.
  • Exercise price is set at a 30% premium to the market price.
  • Term is two years from the date of issuance.
• Closing Conditions: Closing is expected concurrent with the execution of definitive documentation on or about Dec. 16, 2025, subject to customary conditions including TSX Venture Exchange approval.

Notable Quotes

• No direct quotes from management were included in the provided text.