Atalaya Mining PLC US$14 million Prepayment Funding with Transamine (8925I)
05 September 2016 - 4:00PM
UK Regulatory
TIDMATYM
RNS Number : 8925I
Atalaya Mining PLC
05 September 2016
Atalaya Mining plc ("Atalaya" or the "Company")
(AIM: ATYM, TSX: AYM)
US$14 million Prepayment Funding with Transamine Trading
S.A.
The Company is pleased to announce the conclusion of a
significant proportion of its funding requirements in relation to
the mine expansion (the "Expansion Project"), through entering into
a US$14 million copper concentrate prepayment agreement (the
"Facility") with Transamine Trading S.A. ("Transamine").
Transamine, an independent and privately owned commodity trading
company headquartered in Geneva, has been assigned part of the
offtake agreements from existing offtakers.
Facility highlights
-- The duration of the Facility is from 1 January 2017 to 31 December 2018;
-- Under the terms of the Facility, Transamine will receive
60,000 Dry Metric Tonnes ("DMTs") per annum of copper
concentrate;
-- The Company's subsidiary, EMED Marketing Limited ("EMED
Marketing"), will have the ability to draw down the US$14 million
prepayment funding following the signing of the agreement;
-- Terms and conditions of the Facility are based on standard
market conditions. The Facility will bear interest at US$ 6 months
LIBOR + 2.75%;
-- The Facility will be settled through agreed deductions from
the payments received for each shipment;
-- Transamine has agreed to pay for copper concentrates at a
price based on the prevailing metal prices for the copper and
silver content around the time of shipment, less any applicable
deductions, all pursuant to the terms of the prevailing offtake
agreements;
-- EMED Marketing has the option to extend the contract, with
the same terms, for an additional US$ 14 million provided certain
production conditions have been met and the first US$ 14 million
have been settled.
EMED Marketing's obligations to Transamine under the Facility
are secured by ore and concentrates in stock and to be produced by
the Company, in addition to new equipment purchased by the Company
for the Expansion Project.
Alberto Lavandeira, CEO, commented:
"We are pleased to announce this commercial partnership with
Transamine. The successful completion of this transaction, at
competitive terms, represents a significant achievement for the
Company. The funding proceeds will be used to cover part of the
short term working capital requirements to support the Company
through the ramp-up phase.
Ramp-up of production is progressing as planned, with the plant
now running at 8.3 Mtpa annualized capacity and having produced
3,175 tonnes of copper during August. This is approximately a 30%
improvement over July`s production of 2,442 tonnes of copper.
Accumulated production for July and August 2016 is already 26%
higher than the production of the second quarter of 2016, and is an
indication of the good progress of the ramp-up of the Expansion
Project that is expected to be working at full capacity by the end
of 2016.
The Company will continue to work on alternative funding
solutions to improve its balance sheet and its working capital
position during the ramp-up period to full expanded
production."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Contacts:
Atalaya Mining Roger Davey / Alberto +34 959
plc Lavandeira 59 28 50
--------------------- --------------------------- ------------
Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor +44 20 7523
Broker) / Martin Davison 8000
--------------------- --------------------------- ------------
BMO Capital Markets Jeffrey Couch/Neil +44 20 7236
(Joint Broker) Haycock/Tom Rider 1010
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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