Atico to acquire Toachi to form new copper-gold company

9 July 2019 (Last Updated July 9th, 2019 10:52)

Atico has signed a definitive agreement to acquire all of the issued and outstanding shares of Canada’s Toachi Mining to create a new Latin American focused copper-gold company.

Atico has signed a definitive agreement to acquire all of the issued and outstanding shares of Canada’s Toachi Mining to create a new Latin American focused copper-gold company.

Upon closing the transaction, existing Atico and Toachi shareholders will own around 83% and 17% of the new company, respectively.

The key terms of the transaction include creation of the Latin American copper-gold company monitored by the producing El Roble mine in Colombia, and the La Plata project in Ecuador.

Atico Mining CEO and director Fernando Ganoza said: “Atico has been successful in transforming the El Roble project into an important cash generating asset with high safety, environmental and operating standards.

“We believe the high-grade gold and copper La Plata project provides such an opportunity as the combination of El Roble and La Plata creates a robust platform for accretive growth for both Atico and Toachi shareholders.”

The new company will have expanded presence in the capital markets and enhance its expertise in operations and mine development in Latin America.

Atico noted that the combined entity will provide significant revaluation potential as a producer with growth potential, once the transaction closes.

The transaction will enable the company to operate and develop synergies in close proximity and geological similarities.

Furthermore, the acquisition allows Toachi to gain a reasonable stake in the combined company providing continued exposure to La Plata and Atico’s producing El Roble mine.

The transaction is, however, subject to certain regulatory approvals and other customary closing conditions.