Atalaya Mining PLC Payment of the Deferred Consideration to Astor (2961S)
March 15 2021 - 8:31AM
UK Regulatory
TIDMATYM
RNS Number : 2961S
Atalaya Mining PLC
15 March 2021
15 March 2021
Atalaya Mining Plc.
("Atalaya" or "the Company")
Payment of the Deferred Consideration to Astor Management AG
Atalaya Mining Plc (AIM:ATYM, TSX:AYM) is pleased to announce
that it has made the payment of the EUR53 million (the "Deferred
Consideration") to Astor Management, AG ("Astor") following the
approval of its Board of Directors. This amount arises from
arrangements entered into with Astor in 2008 in relation to
Proyecto Riotinto.
As previously announced, the timing of the payment of the
Deferred Consideration has been subject to a legal process. The
Court of Appeal supported the view of the High Court in determining
that the Deferred Consideration to be paid by the Company had not
yet fallen due but would only be payable out of excess cash.
Despite the Company believing that it has not yet generated excess
cash to incur an immediate payment, the Board believes that now is
the appropriate time to pay the Deferred Consideration and remove
the timing uncertainty from the balance sheet.
The Company is funding the payment with unsecured credit lines
by four major Spanish banks having a three-year tenure and an
average annual interest rate of approximately two per cent.
Atalaya's financial position remains strong with unaudited
consolidated cash and cash equivalent balances above EUR47 million
as at 28 February 2021.
The payment of the Deferred Consideration may not end the
ongoing litigation between the parties as the issue of any residual
interest that may or may not be payable remains unresolved. The
Company is of the view that no interest is payable as excess cash
has not yet been generated The Company expects this process to be
resolved over the next 12-18 months with the Courts determining
whether any interest is payable and if so, at what level.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Alberto Lavandeira, CEO, commented:
"I am very pleased this historical issue, that is associated
with the legacy of the previous owners, is coming to an end. We
have achieved an enormous goal in bringing Proyecto Riotinto to
fruition, despite all the obstacles, and are well positioned to
benefit from the current high copper price environment. The Company
appreciates the continued support of its shareholders in helping us
to get to this position. I believe it is now time to look forward
to future projects and how to fund these while evaluating potential
dividend policies "
Contacts:
Elisabeth Cowell / Adam Lloyd / + 44 20 3757
SEC Newgate Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor / James +44 20 7523
Broker) Asensio 8000
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BMO Capital Markets +44 20 7236
(Joint Broker) Tom Rider 1010
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Peel Hunt LLP +44 20 7418
(Joint Broker) Ross Allister / David McKeown 8900
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About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group
which produces copper concentrates and silver by-product at its
wholly owned Proyecto Riotinto site in southwest Spain. In
addition, the Group has a phased, earn-in agreement for up to 80%
ownership of Proyecto Touro, a brownfield copper project in the
northwest of Spain. For further information, visit
www.atalayamining.com
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