News appears to be a set back
Atacama Minerals Corporate Update
VANCOUVER, BRITISH COLUMBIA--Atacama Minerals Corp. (the
"Company") announces that negotiations with ABN AMRO Bank N.V.
with respect to the placement of project debt for the Company's
Aguas Blancas project in Chile have been discontinued for the time
being. The Company has determined that the conditions under which
these loans would be extended could not be accommodated at this
time. The Company intends to aggressively pursue financing
alternatives for the Aguas Blancas project and fully expects the
project to be developed as envisioned.
Commenting on these developments, Robert S. Cogliandro, the
President of the Company stated, "The unsatisfactory conclusion of
negotiations with ABN AMRO is obviously a disappointment to the
Company but the issues in contention were in no way a reflection
on the projected economics of the project. In view of end product
pricing, the project continues to be extremely viable and we
remain committed to bringing it into production. Over the next
few weeks we will be evaluating alternative financial structures
for the project but we will also be committing significant equity
capital towards continuing development. In the meantime, our
strong cash position which is currently U.S. $17 million and our
development of a strong technical management team leaves us easily
positioned to initiate these actions and support operations for
the coming year. By committing these financial resources, the
Company is making a statement that the Aguas Blancas project
should and will be built."
The Company is continuing with the detailed engineering program
initiated earlier this month. During the next three months, the
Company will complete the final pre-construction engineering,
begin the procurement of certain long lead-time pieces of
equipment, and begin construction of key infrastructure elements
at the plant site. By doing so, the Company should minimize any
schedule slippage.
Atacama Minerals Corp. has defined geological resources of 97.3
million tonnes of iodine ore and 36.7 million tonnes of sodium
sulphate ore at its Aguas Blancas site near Antofagasta, Chile.
At full capacity, the Company will annually produce 1,000 tonnes
of crude iodine, 300,000 tonnes of sodium sulphate and 70,000
tonnes of potassium nitrate making the Company an important new
supplier of industrial minerals. With sales prices for iodine
currently at over U.S. $20 per kilogram and sodium sulphate at
U.S. $140 - $160 per tonne, the project is expected to generate
sales of over U.S. $55 million in its first full year of
operations. This will grow to U.S. $75 million when the potassium
nitrate plant enters production. ON BEHALF OF THE BOARD
Robert S. Cogliandro, President |
