Business
Historical Related Party Transactions
Historical Related Party Transactions.
About this update from Atalaya Mining Copper Sa
[{"type":"text","content":"\n\n \n1 December 2023\nAtalaya Mining Plc.\n(\"Atalaya\" or \"the Company\")\nHistorical Related Party Transactions\n \nAtalaya Mining Plc (AIM: ATYM) has identified certain historical dealings with related parties where additional public disclosure is required. All of these dealings relate to amendments, entered into on preferable terms to the Company, to certain historical contracts. \nBackground\nIn May 2015, the Company agreed terms with key stakeholders in a capitalisation exercise to finance the re-start of Proyecto Riotinto (the \"2015 Capitalisation\"). \nAs part of the 2015 Capitalisation, the Company entered into offtake agreements with some of its large shareholders, one of which was Trafigura Pte Ltd (\"Trafigura\"), under which the total forecast concentrate production from Proyecto Riotinto was committed (\"2015 Offtake Agreements\"). Trafigura was a substantial shareholder in Atalaya and, therefore, a Related Party to the Company. As a result, the offtake agreement with Trafigura was deemed to be an AIM Rule 13 Related Party Transaction and appropriately disclosed in the Shareholder Circular published at the time.\nIn addition, in September 2015, the Company separately entered into a services agreement with Impala Terminals Huelva S.L.U. (\"Impala Terminals\") for the handling, storage and shipment of copper concentrates produced from Proyecto Riotinto (\"2015 Port Handling Agreement\"). At the time, Impala Terminals was majority owned by Trafigura. The agreement covered total export concentrate volumes produced from Proyecto Riotinto for three years for volumes not committed to Trafigura under its offtake agreement and for the life of mine for the volumes committed to Trafigura under its offtake agreement.\nSpot Sales Agreements\nDue to various expansions implemented at Proyecto Riotinto in recent years, as well as the production of pre-commercial concentrate in 2015 and 2016, volumes of concentrate have been periodically available for sale outside of the Company's various offtake agreements. As a result, from 2015 to November 2023, the Company completed 19 concentrate sales transactions on a spot basis (\"Historical Spot Sales\") outside of its offtake agreements, 10 of which were completed with Trafigura through amendments to its existing offtake agreement. Historical Spot Sales were the re...