Atlas unit gets $5.4-M loan

Carmen Copper Corp. (CCC), a subsidiary of Atlas Consolidated Mining and Development Corp., has secured a $5.4 million (about P259 million) bridge loan from Manchester Securities Corp.

In a disclosure to the Philippine Stock Exchange, Atlas said the loan will be used to purchase additional heavy equipment for the rehabilitation of its copper mines in Toledo, Cebu. This is in addition to the $10.2-million loan previously acquired by Carmen Copper to buy equipment from Komatsu Ltd.

Atlas said these bridge loans would be repaid once the $100-million syndicated loan being arranged by Deutsche Bank AG, which will be guaranteed by the state-run Trade and Investment Development Corp., is finalized.

CCC needs around $160 million for the rehabilitation of the Toledo copper mine. The company hopes to source the fund from a combination of debt and equity infusion.

CCC, a company spun off by Atlas to take charge of the development of the Toledo copper mine, has secured environmental permits from the government, allowing the resumption of its mining operations.

Independent reviews of the mine show commercial viability and its re-opening is expected to reap substantial benefits, both social and economic, to the national and local economies.

Based on the updated feasibility study on CCC, the mine is expected to produce an average of 47,000 tons of copper and 41,000 ounces of gold per year over a 12-year period.

CCC has been registered as a non-pioneer enterprise with the Board of Investments, allowing it to enjoy fiscal incentives which include a four-year income tax holiday and duty-free importation of capital equipment.

Atlas said CCC hopes to upgrade its registration to pioneer status in the near future.