Atico Mining (TSX-V:ATY) has closed a US$16.4 million ($23.6 million) convertible debenture with an affiliate of Trafigura and targets a construction start at its La Plata Project in Ecuador in early 2027.
The company issued the secured debenture under a non-brokered private placement, alongside a shares-for-debt transaction with Trafigura. Both deals were first announced on 29 September 2026.
The debenture consideration comprises an advance of about US$12.48 million and the conversion of about US$3.52 million owed under the existing Trafigura credit agreement, totalling about US$16 million after the original issue discount.
It converts into common shares at US$0.22 each, a 40% premium to the 20-day volume-weighted average price (VWAP) on 28 September 2026, and matures five years and one day from issuance.
Interest is payable quarterly at 7% a year in cash or 10% in shares, with any share payment subject to TSX Venture Exchange approval.
Under the shares-for-debt deal, Atico issued 16,149,870 shares at a deemed price of about US$0.1548 to settle US$2.5 million owed to Trafigura. The 8 February 2022 credit agreement has now been repaid in full.
Part of the advance repaid all outstanding debt under the 12% unsecured subordinated debenture issued to Dundee Corporation on 16 December 2025. The balance will fund pre-construction work at La Plata and general corporate purposes.
CEO Fernando Ganoza says the closing settles liabilities that fell due at the end of this year and next.
“The company is now fully funded to execute on our near-term plans at the La Plata project, including all pre-construction activities through to a ready state to begin construction in Q1 2027,” Ganoza adds.
Ventum Financial acted as financial advisor, receiving US$328,000 in cash and 1,589,147 shares at a deemed price of US$0.22 each.
Atico Mining explores, develops, and mines copper and gold projects in Latin America. It generates cash flow from the El Roble mine and is developing the ‘high-grade’ La Plata volcanogenic massive sulphide (VMS) project.
Write to JC Villarba at Mining.com.au
Images: Atico Mining
