Atico signs La Plata investment protection agreement

Executive Summary

• Atico Mining Corp. signed an Investment Protection Agreement with the Government of Ecuador for its La Plata VMS project, covering a total investment of $157.9 million.
• The IPA provides legal and tax stability—including a 5% income‑tax reduction—and guarantees international arbitration in disputes, enhancing investor confidence.
• With the IPA in place, Atico is nearing final environmental permitting and plans to commence construction, creating 600+ direct jobs (plus up to 1,800 indirect) during build‑out and 300+ direct jobs (plus up to 900 indirect) in production.

Key Details

• Agreement Scope: Investment Protection Agreement (IPA) between Atico Mining Corp. and the Ecuadorian State for the La Plata project; total protected investment of $157.9 million USD.
• Legal & Tax Benefits:
• Grants legal stability for the life of the contract.
• Provides a 5% reduction in corporate income tax for the contract term.
• Stabilizes tax‑base and tax‑due rules at signing (administrative procedures excluded).
• Dispute Resolution:
• Mandatory 60‑day amicable negotiation period.
• Unresolved disputes settled by ICC arbitration in New York, with a three‑arbitrator tribunal (nationalities not shared with parties unless agreed).
• Property Rights Protections: Ban on confiscation/expropriation except for constitutional public purposes, with market‑value compensation and non‑discriminatory treatment.
• Operational Milestones:
• La Plata project is in the final stage of obtaining its environmental licence and other required permits.
• Post‑permit, construction will begin, targeting >600 direct and 1,200–1,800 indirect jobs during the build phase.
• In commercial production, expected >300 direct and 600–900 indirect employment.
• CEO Comment: Fernando E. Ganoza highlighted the IPA as a “significant milestone” that secures investment, ensures tax stability, and positions La Plata as a cornerstone for responsible mining and long‑term value creation.

Notable Quotes

“The signing of the IPA for the La Plata project is a significant milestone that underscores our commitment to sustainable development and economic growth in Ecuador… it safeguards current and future $157.9 million of investments throughout the life of the mine.” – Fernando E. Ganoza, CEO