VANCOUVER, British Columbia, Dec. 29. 11, 2021 (GLOBE NEWSWIRE) — Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTCQX: ATCMF) announces that it has entered into an agreement (the “Agreement”) with the National Mining Agency ( “NMA”) in Colombia regarding the ongoing royalty litigation covering the El Roble property. Although the company has maintained that it is in good standing with the requirements of a new title, with this agreement the company was officially regulated by the NMA.
As part of the settlement, the NMA and the company have also agreed to settle the dispute by binding arbitration at the Arbitration and Conciliation Center of the Bogota Chamber of Commerce for the purposes of seeking expedited resolution of the pending claim. , which is currently being settled in Colombian courts where proceedings can last several years. In contrast, the arbitration rules state that the court’s final decision takes approximately six to twelve months from the start of the arbitration process. To the extent that a final decision is rendered in favor of the Company, the payment plan will cease and any amount 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 an upcoming arbitration.
The agreement provides for the company to enter into a five-year payment plan, payable in semi-annual installments for an aggregate amount of approximately US$21.9 million plus interest at an annual rate of 6%. The Company will make an initial 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. , US$5.8 million in the fourth year and US$9.7 million in the fifth year. The total amount payable represents all outstanding royalty payments that the NMA has claimed through the end of December 2021. The parties have agreed to this interim arrangement until a final arbitration award is made.
For this arrangement to comply with Colombian law, a guaranteed guarantee equal to the value of the agreed payment plan is required. The Company intends to provide the required security by granting security over 9,700 wet metric tonnes of concentrate. The deposit and the guarantee will be released in proportion to the payments made in accordance with the payment schedule. The title can later be changed to another type.
The Company continues to work on renewing title to the El Roble claims which are due to expire on January 23, 2022. If the Company is unable to obtain new title in time, it will continue to operate after the date expiration while the process for the new title continues, as issued by the NMA in response to a formal request made by the company. Although the process of obtaining the new title is progressing favorably, there is no guarantee at this stage that the Company will obtain a new title.
About Atico Mining Corporation
Atico is a growth-oriented company focused on the exploration, development and operation 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 pursuing additional acquisitions of late-stage opportunities. For more information, please visit www.aticomining.com.
ON BEHALF OF COUNCIL
Fernando E. Ganoza
Atico Mining Corporation
Stock Symbols: TSX.V: ATY | OTCQX: ATCMF
Phone. : +1.604.633.9022
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 “US Securities Act’’), or any state securities law, and may not 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 pursuant to an exemption from that -this. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy 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, but not limited to, payment plan terms, timing of arbitration proceedings, belief that the Company has a strong case for a positive outcome in the royalty dispute, the intention to provide the required security by granting a guarantee on 9,700 tonnes of concentrate, the possibility that the concentrate guarantee will be substituted for another guarantee at a later date, the potential renewal of title to claims comprising the El Roble property and continued operations while a new contract is finalized 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. Important factors that could cause actual results to differ materially from the Company’s expectations include uncertainties regarding the timing and process for renewal of title to El Roble’s concessions; uncertainties related to the interpretation of drilling results and 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 as to 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, the Company and others to this pandemic or other issues; and other risks and uncertainties disclosed under “Risk Factors” in the prospectus of the Company dated March 2, 2012 filed with the Canadian securities authorities 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 made. The forward-looking statements contained in this release represent our expectations as of the date of this release. We disclaim any intention or obligation or undertaking 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.