Atico Mining Signs New 30-Year Title for El Roble Mine and Receives Ruling Clarification from Tribunal

Hamilton Spectator

26-05-2025

VANCOUVER, British Columbia, May 26, 2025 (GLOBE NEWSWIRE) — Atico Mining Corporation (the 'Company' or 'Atico') (TSX.V: ATY | OTC: ATCMF) is pleased to announce that further to the
News Release on April 10
th
2025
, it has now signed the new 30-year mining title with the Colombian National Mining Agency ('NMA') for the El Roble mine.
'The new 30-year title is very positive for the Company as it significantly de risks the El Roble operation,' said Fernando E. Ganoza, CEO. 'The new title also includes the ability to sell the previously pledged concentrate which will inject material liquidity to the Company. Together, these developments will allow us to improve the balance sheet position in the short term, fulfill our obligations, and focus on further extending the El Roble life of mine through an aggressive near-mine drill program currently on-going.'
Following several months of negotiations with the Company, the NMA has reached a decision to grant a new 30-year mining title to Minera El Roble in accordance with the preference right stated in the decree 2477 from 1986.
The new contract will fall under the current law for mining titles in Colombia, Law 685 from 2001, and will have all the requirements in it. It will also have additional contractual compensation fees for the Colombian State and a community relations expense, which the Company has been committed to in a discretionary way over the years.
At the time of the grating of the new title, Atico held approximately 5,000 wet metric tonnes of unsold concentrate in inventory as a security and guarantee to the NMA. The amount of concentrate held as security is reduced proportionally every time the Company makes a payment, and the obligation is reduced. At recent metal prices, the approximate value of this concentrate is US$2000 per dry metric tonne. The granting of the new title includes releasing of the pledge over concentrate held in inventory. The Company intends to use the proceeds of the previously pledged concentrate sale to add liquidity to the operation and significantly reduce its liabilities.
Further to the
News Release dated March 10
th
2025
, the Company has received on April 9th, clarification from the Bogotá Chamber of Commerce on the ruling it announced on March 7th 2025. The Tribunal stated that the US$12 million which the Company had already paid through its payment plan until that date, shall be adjusted for inflation and related interest. At the same time, it instructed the company and the NMA to agree on the continuation of the original payment plan, which was agreed by both parties on May 12th. Additionally, on May 5th 2025 the Company paid approximately US$3M as per the payment plan, further reducing the obligation with the NMA. The remaining approximately US$10.7 million will be paid to the NMA in accordance with the payment plan schedule during 2025 and 2026.
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 its high-grade La Plata VMS project in Ecuador. The Company is also 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 | OTCQX: ATCMF
Investor Relations
Igor Dutina
Tel: [phone]
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.
Cautionary Note Regarding Forward Looking Statements
This announcement includes certain 'forward-looking statements' within the meaning of Canadian securities legislation. Such forward-looking statements herein include, but are not limited to, the Company's intention to sell unsold concentrate and the intended use of net proceeds from such sale, and the balance sheet and liquidity improvements in the short-term derived from the receipt of the new title and the concentrate sale. The Company does not intend to and does not assume any obligation to update such forward-looking statements, other than as required by applicable law.
Forward- looking statements involve various known and unknown risks and uncertainties and are based on certain factors and assumptions that may cause the actual results, level of activity, production levels, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Important factors that could cause actual results to differ materially from the Company's expectations include but are not limited to uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to maintain its interest in and/or explore and develop the Company's mineral projects; the Company's substantial reliance on the El Roble mine for revenues; uncertainty of meeting anticipated program milestones for the Company's mineral projects; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, Colombia, Ecuador or other countries in which the Company does or may carry on business; risks relating to mining title and surface rights and access; uncertainties and risks related to carrying on business in foreign countries; currency exchange rate fluctuations; fluctuations in metal prices; risks associated with the Company's outstanding debt; and other risks and uncertainties disclosed under the heading 'Risk Factors' in the Annual Information Form of the Company dated September 4, 2024 filed with the Canadian securities regulatory authorities on the SEDAR+ website at
www.sedarplus.com
.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company's mining operations; that all required third party contractual, regulatory and governmental approvals will be obtained for the development, construction and production of its properties; the Company's ability to sell unsold concentrate at a price approximately consistent with current market prices; permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations; no material adverse change occurring in the market price of commodities; currency exchange rates being approximately consistent with current levels; forecast mine economics; that mining operations will function and the mining products will be completed in accordance with management's expectations and achieve their stated production outcomes; and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.