Business
Altiplano Announces Offtake Agreement and Loan Facility to Support Start Up at El Penon
Edmonton, Alberta--(Newsfile Corp. - April 19, 2023) - Altiplano Metals Inc. (TSXV: APN) (WKN: ...
About this update from Altiplano Metals Inc.
[{"type":"text","content":"Altiplano Announces Offtake Agreement and Loan Facility to Support Start Up at El PenonEdmonton, Alberta--(Newsfile Corp. - April 19, 2023) - Altiplano Metals Inc. (TSXV: APN) (WKN: A2JNFG) (\"Altiplano\" or the \"Company\") is pleased to announce that it has entered into a concentrates offtake and loan agreement dated April 18th, 2023 (the \"Offtake Agreement\") with ArrowMetals Asia Pte. Ltd. (\"ArrowMetals\"), which is part of the ArrowResources AG group of companies (\"Arrow Group\").Pursuant to the Offtake Agreement, Altiplano will sell copper concentrates produced at the El Peñón processing facility located 15 km from the Farellon Iron-Oxide-Copper-Gold mine in Chile, on an exclusive basis to ArrowMetals until December 31, 2025, and the agreement may be further extended. Pursuant to a Term Loan Facility Agreement dated April 18th, 2023 (the \"Facility\"), ArrowMetals has also agreed to make available to Altiplano up to USD$1.5 million as a loan facility, which will be repaid by delivery of such concentrates. The Facility will be by way of multiple drawdowns on request of Altiplano, with the first drawdown being for USD$500,000, which will be repaid with interest in monthly instalments, against Altiplano's future shipments of concentrates over the next 12 months. Under the Offtake Agreement, Altiplano will ship the concentrates at the rate of 300 DMT per month during the term of the Offtake Agreement, until a minimum quantity of 10,000 DMT has been delivered. Provided certain conditions are met for metal content, ArrowMetals will pay for the concentrates at the prevailing metal prices for their copper and gold content within either one month after delivery or four months after delivery, as may be declared prior to delivery, less treatment, refining, shipping and insurance charges. Interest will be charged on the loaned amount due to ArrowMetals from time to time at a rate of SOFR plus 4.70%. The Company's repayment of all amounts owing to ArrowMetals will be secured by a security interest granted to ArrowMetals over a proportion of Altiplano's processing facility and mineral stockpiles in Chile as collateral, limited to the amounts owing.Alastair McIntyre, President & CEO of Altiplano commented, \"We are very pleased to complete this transaction with ArrowMetals and move forward with the completion of our proc...