Atico Mining Corporation Announces Closing of US$6.5 Million Unsecured Convertible Debenture Private Placement
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Atico Mining Corporation Announces Closing of US$6.5 Million Unsecured Convertible
Debenture Private Placement
NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR FOR DISSEMINATON
INTO THE UNITED STATES
Vancouver, December 16, 2020 -- Atico Mining Corporation (the “ Company” or “ Atico”) (TSX.V:
ATY | OTC: ATCMF) is pleased to announce that it has closed its private placement with Dundee
Corporation with respect to the issuance of unsecured convertible debentures (the “Debentures”) of the
Company for gross proceeds of US$6.5 million (the “Offering”).
The Debentures will mature five years following the closing date with an interest rate of 7% per annum
and, subject to certain terms and conditions, will be convertible into up to an aggregat e of 11,627,907
common shares of the Company (the “ Conversion Shares”) at a conversion price of US$0.559 per
Conversion Share (being CDN$0.715 per Conversion Share converted into US dollars using the Bank
of Canada daily exchange rate for CDN$ to US$ on December 4, 2020). The conversion price represents
(i) a premium of 42% to the 20 -day VWAP, and (ii) a premium of 34% to the 10 -day VWAP, of the
closing price of the common shares on December 4, 2020. The Debentures, and Conversion Shares
issuable upon conve rsion of the Debentures, will be subject to resale restrictions for a period of four
months from the closing date.
The Company may, at its option, redeem the Debentures, in whole or in part, at par plus accrued and
unpaid interest. The Company must pay a redemption fee equal to 2% of the principal amount if
redeemed between 12 months and 2 years after the date of closi ng of the Offering and equal to 4% of
the principal amount if redeemed within 12 months of such date. No redemption fee will be charged to
redeem the Debentures after two years of the date of closing of the Offering. In connection with the
Debentures, certain subsidiaries of the Company will grant a guarantee in favour of Dundee Corporation.
In connection with the Offering, the Company paid Dundee Goodman Merchant Partners a cash finder’s
fee of US$357,500.00.
The proceeds of the Offering will be used for work on the Company’s La Plata project and for general
working capital purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and will be not be registered under the United
States Securities Act of 1933 as amended (the “1933 Act”), or any state securities laws and may not be
offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in
Regulation S under the 1933 Act) absent such registration or an applicable exemption from such
registration requirements.
About Atico Mining Corporation
Atico is a growth -oriented Company, focused on exploring, developing and mining copper and gold
projects in Latin America. The Company generates significant cash flow through the operation of the El
Roble mine and is developing it’s high -grade La Plata VMS project in Ecuador. The Company is also
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pursuing additional acquisition of advanced stage opportunities. For more information, please
visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. Ganoza
CEO
Atico Mining Corporation
Trading symbols: TSX.V: ATY | OTC: ATCMF
Investor Relations
Igor Dutina
Tel: +1.604.633.9022
Cautionary Note Regarding Forward Looking Statements
This announcement includes certain “forward -looking statements” within the meaning of Canadian securities
legislation. All statements, other than statements of historical fact, included herein, without limitation the u se of
net proceeds, are forward-looking statements. Forward- looking statements involve various risks and uncertainties
and are based on certain factors and assumptions. There can be no assurance that such statements will prove to
be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from the Company’s expectations include
uncertainties relating to interpretation This news re lease includes “forward -looking information” under
applicable Canadian securities laws. These forward looking statements or information relate to, among other
things: the intended use of proceeds from the Offering, the conversion of the Debentures and the Company’s
exploration and development programs. Such forward -looking statements are based on a number of opinions,
estimates and assumptions that we currently believe are appropriate and reasonable in the circumstances,
including, but not limited to: the f uture prices of copper and gold; currency exchange rates and interest rates;
favourable operating conditions; political stability; obtaining required licenses and permits; labour stability and
stability in market conditions. Despite a careful process to pr epare and review the forward -looking information
and statements, there can be no assurance that the underlying opinions, estimates and assumptions will prove to
be correct. Numerous risks and uncertainties, some of which may be unknown, relating to the Company’s business
could cause actual events and results to differ materially from the estimates, beliefs and assumptions expressed or
implied in the forward -looking information and statements. Such factors include, without limitation: receipt of
required regulatory approvals; the Company’s ability to refinance its indebtedness, the risk that the Company’s
credit ratings could be downgraded; the Company having insufficient financial resources to achieve its objectives;
fluctuations in general macro -economic co nditions; fluctuations in securities markets and the market price of
Atico’s shares; fluctuations in the spot and forward price of gold and other metals or certain other commodities
(such as natural gas, fuel oil and electricity); fluctuations in the curre ncy markets (such as the Canadian dollar,
Colombian peso and the U.S. dollar); changes in national and local government, legislation, taxation, controls,
regulations and political or economic developments in Canada, the United States, Colombia or Ecuador; operating
or technical difficulties in connection with mining or development activities; risks and hazards associated with the
business of mineral exploration, development and mining (including environmental hazards, industrial accidents,
unusual or unexpe cted formations, pressures, cave -ins and flooding); risks relating to the credit worthiness or
financial condition of suppliers, refiners and other parties with whom the parties do business; inability to obtain
adequate insurance to cover risks and hazards ; and the presence of laws and regulations that may impose
restrictions on mining, including those currently enacted in Colombia and Ecuador; employee relations;
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relationships with and claims by local communities and indigenous populations; availability an d increasing costs
associated with mining inputs and labour; the speculative nature of mineral exploration and development,
including the risks of obtaining necessary licenses, permits and approvals from government authorities;
diminishing quantities or gr ades of mineral reserves as properties are mined; title to properties; and risks and
uncertainties applicable to Atico as set forth in its continuous disclosure filings filed under its SEDAR profiles at
www.sedar.com.
Readers are cautioned against attributing undue certainty to forward-looking statements or information. Although
the Company has attempted to identify important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend,
and does not assume any obligation, to update these forward-looking statements or information to reflect changes
in assumptions or changes in circumstances or any ot her events affecting such statements or information, other
than as required by applicable law.
Neither 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.