Altiplano Announces Offtake Agreement and Loan Facility to Support Start Up at El Penon
Altiplano Announces Offtake Agreement and
Loan Facility to Support Start Up at El Penon
Edmonton, Alberta--(Newsfile Corp. - April 19, 2023) -
Altiplano Metals Inc.
(TSXV: APN) (WKN:
A2JNFG)
("Altiplano" or the "Company")
is pleased to announce that it has entered into a
concentrates offtake and loan agreement dated April 18
th
, 2023 (the "
Offtake Agreement
") with
ArrowMetals Asia Pte. Ltd. ("
ArrowMetals
"), which is part of the ArrowResources AG group of
companies ("
Arrow Group
").
Pursuant to the Offtake Agreement, Altiplano will sell copper concentrates produced at the El Peñón
processing facility located 15 km from the Farellon Iron-Oxide-Copper-Gold mine in Chile, on an
exclusive basis to ArrowMetals until December 31, 2025, and the agreement may be further extended.
Pursuant to a Term Loan Facility Agreement dated April 18th, 2023 (the "
Facility
"), ArrowMetals has
also agreed to make available to Altiplano up to USD$1.5 million as a loan facility, which will be repaid
by delivery of such concentrates.
The Facility will be by way of multiple drawdowns on request of
Altiplano, with the first drawdown being for USD$500,000, which will be repaid with interest in monthly
instalments, against Altiplano's future shipments of concentrates over the next 12 months.
Under the Offtake Agreement, Altiplano will ship the concentrates at the rate of 300 DMT per month
during the term of the Offtake Agreement, until a minimum quantity of 10,000 DMT has been delivered.
Provided certain conditions are met for metal content, ArrowMetals will pay for the concentrates at the
prevailing metal prices for their copper and gold content within either one month after delivery or four
months after delivery, as may be declared prior to delivery, less treatment, refining, shipping and
insurance charges. Interest will be charged on the loaned amount due to ArrowMetals from time to time
at a rate of SOFR plus 4.70%.
The Company's repayment of all amounts owing to ArrowMetals will be secured by a security interest
granted to ArrowMetals over a proportion of Altiplano's processing facility and mineral stockpiles in
Chile as collateral, limited to the amounts owing.
Alastair McIntyre, President & CEO of Altiplano commented, "We are very pleased to complete this
transaction with ArrowMetals and move forward with the completion of our processing facility. This new
business relationship, and these agreements, mark a major milestone for Altiplano. ArrowMetals's
commitment to our business provides a significant seal of approval on the Company and our growth
prospects . These favourable finance terms ensure that Altiplano will have access to working capital to
further advance operations and continue with our growth strategy. The Facility demonstrates
ArrowMetals's support for Altiplano, and we expect Arrow will be a key contributor to our growing
success."
Raoul Meier, Head of Metals at the Arrow Group stated that, "We are delighted to have concluded this
new long-term business relationship.
Altiplano has a clear view on its growth plan and we are looking
forward to working closely with them on what promises to be an exciting journey".
The Company will use the prepayment amounts for working capital needed to transition from currently
selling copper-gold mineralized material to third party processors to processing through its own El
Peñón facility and to optimize development of the Farellon Mine project for increased productivity, as
well as potential development in additional projects. Processing at the Company's state of the art El
Peñón facility is expected to significantly reduce operating, processing and transportation costs while
focusing on the positive environmental impacts of using a dry stack tailings dewatering system expected
to reduce water consumption by 75% and also eliminate the need for a conventional tailings dam. In full
operation, the processing facility is also expected to reduce tailings output by 40% by capturing ~1,850
tonnes of >61% magnetic iron which can be sold as a secondary income stream.
About Altiplano
Altiplano Metals is a growing gold, silver, and copper company focused on the Americas. The Company
has a diversified portfolio of assets that include an operating copper/gold/iron mine and a state-of-the-art
operating copper/gold and iron processing facility in the final stages of completion. Altiplano is focused
on creating long-term stakeholder value through developing safe and sustainable production, reinvesting
into exploration, and pursuing acquisition opportunities to complement its existing portfolio. Management
has a substantial record of success in capitalizing on opportunity, overcoming challenges and building
shareholder value. Altiplano trades on the Toronto Venture Exchange trading under the symbol APN and
the Frankfurt Exchange under the symbol A2JNFG.
ON BEHALF OF THE BOARD
/s/ "John Williamson"
Chairman
For further information, please contact:
Alastair McIntyre, CEO
Tel: (416) 434 3799
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the (TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
This release includes certain statements that may be deemed "forward-looking statements". All
statements in this release, other than statements of historical facts, that address exploration drilling,
exploitation activities and events or developments that the Company expects are forward-looking
statements. A qualified person has not done sufficient work to classify any historical estimates as
current mineral resources or mineral reserves and the issuer is not treating the historical estimates as
current mineral resources or mineral reserves. The Farellon mine was previously in production dating
back to the 1970's with a reported historical production (to a depth of 70 m) yielding approximately
300,000 tonnes at an average grade of 2.5% copper and 0.5g/t gold. This material was processed
locally and sold to ENAMI. Altiplano is relying upon past production records, underground sampling
and related activities and current diamond drilling to estimate grade and widths of the mineralization
to reactivate production. The decision to commence production on the Farellon deposit is not based
on a feasibility study of mineral reserves demonstrating economic and technical viability and there is
increased uncertainty and economic and technical risks of failure associated with any production
decision. Although the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those in the forward-
looking statements. Factors that could cause actual results to differ materially from those in forward-
looking statements include market prices, exploitation and exploration successes, continuity of
mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and
delays due to third party opposition, changes in government policies regarding mining and natural
resource exploration and exploitation, and continued availability of capital and financing, and general
economic, market or business conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may differ materially from those
projected in the forward-looking statements. For more information on the Company, investors should
review the Company's continuous disclosure filings that are available at
www.sedar.com
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/162962