Atico Mining (ATY-V) can make money on El Roble and use it as a jumping-off point to acquire other deposits." Brent Cook
Atico Mining increases equity offerings, debt financing
Sept 17, 2013 - News Release
Further to its news release dated Aug. 15, 2013, Atico Mining Corp. has increased the size of its brokered private placement and its non-brokered private placement, and has changed the structure of its previously announced debt financing and convertible debenture financing, each as described as follows.
Offering
The company now intends to issue up to a total of 24.6 million units at a price of 45 cents per unit for gross proceeds of $11.07-million under the brokered offering. The company is also pleased to announce that the agents under the brokered offering have exercised their option for the issuance of an additional 6.7 million brokered units for additional gross proceeds of $3,015,000.
The company further intends to issue up to a total of 11,869,744 units at a price of 45 cents per unit for gross proceeds of approximately $5,341,385 under the non-brokered offering.
Each brokered unit and non-brokered unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will be exercisable into one common share for a period of 24 months from closing at an exercise price of 65 cents.
Debt financing
The company is pleased to announce that it has finalized its agreement with Trafigura Pte. Ltd., pending regulatory approval, with respect to a senior secured repayable debt facility, and that the principal amount of the debt financing has been increased from the previously announced $6-million (U.S.) to $8-million (U.S.). The material terms of the debt financing otherwise remain the same as those that were previously announced by the company. The debt financing will have a repayment term of 48 months, with annual carried interest of LIBOR (London interbank offered rate) plus 9 per cent payable quarterly, subject to a 12-month grace period (with the first repayment date being 15 months from the date of the first advance).
In connection with the increase in size of the debt financing, the company will no longer issue to Trafigura $2-million (U.S.) in convertible debentures as previously announced.
General
The proceeds raised under the offering and the debt financing will be used for the exercise of the El Roble property option, capital expenditure, exploration and for general working capital purposes.
All securities issued pursuant to the offering will be subject to a four-month hold period.
The company is working toward closing the offering and the debt financing as soon as possible pending receipt of all regulatory approvals.
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