VANCOUVER, British Columbia, December 29, 2021 (GLOBE NEWSWIRE) – Atico mining company (the âCompanyâ or âAticoâ) (TSX.V: ATY | OTCQX: ATCMF) announces that it has entered into an agreement (the âAgreementâ with the National Mining Agency (âNMAâ) in Colombia concerning the royalty litigation covering the El Roble property While the company maintained that it was in good standing with the requirements for a new title, with this agreement the company was officially brought into good standing by the NMA.
As part of the Agreement, NMA and the Company also agreed to settle the dispute by binding arbitration at the Arbitration and Conciliation Center of the Bogota Chamber of Commerce with the aim of seeking an expedited resolution of the claim in course, which is currently being resolved in Colombian courts where proceedings can take several years. In contrast, the arbitration rules state that the final decision of the tribunal takes approximately six to twelve months from the start of the arbitration proceedings. To the extent that a final decision is made in favor of the Company, the payment plan will cease and all amounts already paid will be deducted from future royalty obligations. As advised by its Colombian legal counsel, the Company continues to believe that it has a strong case for a successful outcome in future arbitration.
The Agreement provides that the Company enters into a five-year payment plan, payable in semi-annual installments for a total amount of approximately US $ 21.9 million plus interest at an annual rate of 6%. The Company will make an upfront payment of US $ 1 million, followed by US $ 3.2 million in year one, US $ 3.3 million in year two, US $ 3.4 million in year three , $ 5.8 million in the fourth year and $ 9.7 million in the fifth year. The total amount payable represents all unpaid royalty payments that the NMA has claimed until the end of December 2021. The parties have agreed to this interim arrangement until a final arbitration decision is rendered.
For this arrangement to comply with Colombian law, a guaranteed collateral equal to the value of the agreed payment plan is required. The Company intends to provide the required security by granting security on more than 9,700 wet metric tonnes of concentrate. The deposit and the guarantee will be released as and when payments are made in accordance with the payment schedule. The title may be replaced by another type at a later date.
The Company continues to work on the renewal of the title of El Roble’s property claims which expire on January 23, 2022. If the Company is not able to obtain the new title on time, it will continue to operate after the due date. ‘expiration while the process as the new title continues, as pronounced by the NMA in response to a formal request made by the company. Although the process for the new title is progressing favorably, there can be no assurance at this point that the Company will be awarded a new title.
About the mining company Atico
Atico is a growth-oriented company focused on the exploration, development and exploitation of copper and gold projects in Latin America. The Company generates significant cash flow from the operation of the El Roble mine and is developing its high-grade La Plata VMS project in Ecuador. The Company is also continuing to acquire opportunities at an advanced stage. For more information, please visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. Ganoza
Atico mining company
Stock symbols: TSX.V: ATY | OTCQX: ATCMF
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No securities regulatory authority has approved or disapproved of the contents of this press release. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the âUS Securities Actâ), or any state securities law, and will not may be offered or sold in the United States, or to, or on behalf of or for the benefit of a “US Person” (as defined in Regulation S of the US Securities Act), except where exempted. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
Caution regarding forward-looking statements
This announcement includes certain “forward-looking statements” within the meaning of Canadian securities laws. All statements, other than statements of historical fact, included herein, without limitation the terms of the payment plan, the timing of the arbitration proceeding, the belief that the Company has a strong case in favor of ” a positive outcome in the royalty dispute, the intention to provide the required guarantee by granting a guarantee on 9,700 tonnes of concentrate, the possibility of the concentrate guarantee being substituted for another guarantee at a later date, the renewal potential title claims comprising the El Roble property and continued operations while a new contract is entered into and new title is obtained, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Significant factors that could cause actual results to differ materially from the Company’s expectations include uncertainties regarding the timing and process for the title renewal of the El Roble claims; uncertainties relating to the interpretation of drilling results and to the geology, continuity and grade of mineral deposits; the uncertainty of capital and operating cost estimates; the need to obtain additional financing to maintain its interest in and / or explore and develop the Company’s mining projects; uncertainty regarding the achievement of planned program milestones for the Company’s mining projects; the global economic and social impact of COVID-19 is managed and the duration and extent of the coronavirus pandemic is minimized or not in the long term; disruptions related to the COVID-19 pandemic or other health and safety issues, or the responses of governments, communities, Society and others to such a pandemic or other issues; and other risks and uncertainties disclosed under the heading âRisk Factorsâ in the Company’s prospectus dated March 2, 2012 filed with Canadian securities regulators on the SEDAR website at www.sedar.com. Readers should not place undue reliance on forward-looking statements, which speak only as of the date they are posted. The forward-looking statements contained in this press release represent our expectations as of the date of this press release. We disclaim any intention or obligation or commitment to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.