Atlas mining board approves borrowing plan

MANILA, Philippines - The board of listed Atlas Consolidated Mining and Development Corp. has approved a company plan to borrow $20 million from a global fund manager to fund the rehabilitation of a mine in Toledo City, Cebu. The board also approved the execution of two subscription agreements with two of its subsidiaries — Carmen Copper Corp. and Amosite Holdings, Inc. — and the assignment of a mineral production sharing deal to Carmen Copper. In an interview, Atlas Senior Vice-President Adrian S. Ramos said the loan is part of the mining firm’s capital-raising activity to fund the rehabilitation and operations of the Carmen Copper Mine in Toledo. In a disclosure to the stock exchange, Atlas said the loans would have a term of 90 days at 15% interest per year. "The bridge loan... is intended to be refinanced through the execution of a convertible loan agreement, the terms of which shall provide for a conversion price of P12.60 per share," it added. Atlas also said the subscription agreement with Carmen Copper involves the issuance of 108.7 Carmen Copper common shares to Atlas for $18 million. Meanwhile, the deal with Amosite Holdings involves the issuance of 24,995 shares to be issued to Atlas at P100 per share. - BusinessWorld