Atalya Mining enters into $14m agreement with Transamine Trading for copper mine

Copper explorer Atalya Mining entered in agreement with commodity trading company Transamine Trading for a $14m copper concentrate prepayment in order to fund its mine expansion in Spain.

The agreement for the Proyecto Riotinto in Andalucía, from 1 January 2017 to 31 December 2018, will see Transamine receive 60,000 dry metric tonnes per year of copper concentrate, with a bear interest at six months LIBOR +2.75%.

Transamine will pay for copper concentrates at the price based on the prevailing metal prices for copper and silver around the time of shipment.

Atalya Mining’s subsidiary EMED Marketing will have the option to draw down $14m in funding and extend the agreement.

The mine’s processing plant is running at 8.3m tonnes per annum annualized capacity and having produced 3,175 tonnes of copper during August, which is about a 30% improvement from July`s production of 2,442 tonnes of copper.

Production for July and August 2016 is 26% higher than the production of the second quarter of 2016, which the company said is an indication of the good progress of the expansion project that is expected to be working at full capacity by the end of the year.

Chief executive Alberto Lavandeira, said: "The successful completion of this transaction, at competitive terms, represents a significant achievement for the company. The funding proceeds will be used to cover part of the short term working capital requirements to support the company through the ramp-up phase.

“The company will continue to work on alternative funding solutions to improve its balance sheet and its working capital position during the ramp-up period to full expanded production."