Atlas said the money will be used to partly fund the development of the Toledo copper mine, which ceased operations in 1994. Toledo Copper is listed on the London Stock Exchange.
Atlas said a feasibility study on the rehabilitation and re-opening of the Toledo mine is close to completion and is currently being audited by international consultants Behre Dolbear Australia Ltd.
The study is based on a mine throughput of 42,000 tons of ore per day which is expected to produce 100 million pounds of copper and 45,000 ounces of gold over a period of 11 years.
Atlas said the reopening of the Toledo copper mine could bring significant benefits to the local community in Cebu as well as the national economy , including potential export earnings of up to $2.2 billion ($110 million per annum) during the life of the Toledo mine which could extend to more than 20 years.
Also, Atlas said the reopening of the mine will provide employment opportunities in Cebu and boost the country’s mining industry.
"We will give priority to environmental care and improvement and have recently established a P5 million contingent liability and rehabilitation fund with the DENR. With government support, Atlas can be a source of large-scale employment in the Toledo-Cebu area and many other economic and social benefits," an Atlas official said.
Operations of the Toledo copper mine were interrupted by floods in Dec. 1993, causing the suspension of mining operations. At the peak of production, between 1979 and 1984, Atlas was mining at a rate of 103,000 tons of ore with three separate concentrators in operation.
Apart from this, Atlas has entered into an agreement with Investika Ltd. , a company listed on the Australian Stock Exchange, with the latter taking a 20-percent interest in Atlas’ Palawan nickel project by an immediate investment of $1 million. Atlas’ interest in the project will be reduced to 36 percent.
Atlas was established through the merger of assets and equities of three Soriano-controlled pre-war mines, the Masbate Consolidated Mining Co., IXL Mining Co. and the Antamok Goldfields Mining Co.
Atlas is engaged in mineral and metallic mining and exploration that primarily produces copper concentrates and gold with silver and pyrites as major by-products.