Atico Mining secures $111.4M from Trafigura for La Plata project

Atico Mining Corporation (TSX-V: ATY | OTC: ATCMF) has entered into a $95 million project finance facility and a $16.4 million convertible debenture agreement with Trafigura PTE. Ltd., bringing the total financing package to $111.4 million for the development of its La Plata project in Ecuador, according to a press release.

Under the credit agreement, Trafigura will make the $95 million available to Compañía Minera La Plata S.A. in one or more drawdowns to fund construction and development. Drawdowns will be available for approximately 2.5 years following the earlier of construction commencement or March 31, 2027, with the facility maturing seven years thereafter. The interest rate is set at Adjusted Term SOFR plus 7.5% per annum.

The $16.4 million convertible debenture, issued to a Trafigura affiliate via a non-brokered private placement, carries a conversion price of $0.22 per common share, representing a 40% premium to the 20-day volume-weighted average price as of September 28, 2026. The debenture matures five years and one day from issuance, with interest accruing at 7.0% per annum if paid in cash or 10.0% if paid in common shares.

Proceeds from the convertible debenture are intended to repay approximately $3.5 million of an existing Trafigura credit agreement, retire roughly $6.98 million owed to Dundee Corporation, fund pre-construction activities at La Plata, and cover general corporate purposes.

Separately, Atico and Trafigura entered a debt settlement agreement under which Atico will issue 16,149,870 common shares at a deemed price of approximately $0.1548 per share to settle $2.5 million of existing debt, extinguishing the remaining balance of the prior credit facility.

The transactions remain subject to TSX Venture Exchange approval. The private placement and shares-for-debt transaction are expected to close on or about October 13, 2026, with the first drawdown under the credit facility to follow.

Ventum Financial Corp. acted as financial advisor to Atico on the transactions.

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