Business
Payment of the Deferred Consideration to Astor
Payment of the Deferred Consideration to Astor.
About this update from Atalaya Mining Copper Sa
[{"type":"text","content":"\n \n \n \n RNS Number : 2961S\n Atalaya Mining PLC\n 15 March 2021\n \n \n \n \n 15 March 2021\n \n \n Atalaya Mining Plc.\n \n \n (\"Atalaya\" or \"the Company\")\n \n \n Payment of the Deferred Consideration to Astor Management AG\n \n \n \n \n \n Atalaya Mining Plc (AIM:ATYM, TSX:AYM) is pleased to announce that it has made the payment of the €53 million (the \"Deferred Consideration\") to Astor Management, AG (\"Astor\") following the approval of its Board of Directors. This amount arises from arrangements entered into with Astor in 2008 in relation to Proyecto Riotinto.\n \n \n \n \n \n As previously announced, the timing of the payment of the Deferred Consideration has been subject to a legal process. The Court of Appeal supported the view of the High Court in determining that the Deferred Consideration to be paid by the Company had not yet fallen due but would only be payable out of excess cash. Despite the Company believing that it has not yet generated excess cash to incur an immediate payment, the Board believes that now is the appropriate time to pay the Deferred Consideration and remove the timing uncertainty from the balance sheet.\n \n \n \n \n \n The Company is funding the payment with unsecured credit lines by four major Spanish banks having a three-year tenure and an average annual interest rate of approximately two per cent. Atalaya's financial position remains strong with unaudited consolidated cash and cash equivalent balances above €47 million as at 28 February 2021.\n \n \n \n \n \n The payment of the Deferred Consideration may not end the ongoing litigation between the parties as the issue of any residual interest that may or may not be payable remains unresolved. The Company is of the view that no interest is payable as excess cash has not yet been generated The Company expects this process to be resolved over the next 12-18 months with the Courts determining whether any interest is payable and if so, at what level. \n \n \n \n \n \n This announcement contains inside information for the purposes of Article 7 of Regulation (EU) no 596/2014.\n \n \n Alberto Lavandeira, CEO, commented:\n \"I am very pleased this historical issue, that is associated with the legacy of the previous owners, is coming to an end. We have achieved an enormous goal in bringing ...