Atlas gets new extension for $20-M bridge loan

Atlas Consolidated Mining and Development Corp. has secured another extension for its $20-million bridge loan from fund manager Spinnaker Capital Group of London. The new maturity date is Dec. 9 this year.

Atlas executed a second amendment revising its July 23, 2008 loan contract with certain funds managed by the Spinnaker Capital Group.

The second amendment allows the lenders to extend the term of the bridge loan to a period of 123 days (an additional 33 days to be reckoned from the original maturity date) thereby moving the maturity date to Nov. 25, 2008 in consideration of the transfer to the lenders of five million of Alakor Corp.’s common shares in Atlas.

It also provides the lenders with the option (a) to further extend the term of the bridge loan by an additional 14 days on Nov. 25, 2008 thereby moving the maturity date to Dec. 9, 2008 in consideration of the transfer to the lenders of 2.5 million of Alakor’s Atlas common shares, and to again further extend the term of the bridge loan by an additional seven days on Dec. 9, 2008 in consideration of the transfer to the lenders of 2.5 million of Alakor’s Atlas common shares.

This was disclosed by Atlas to the Philippine Stock Exchange. At the same time, Atlas also informed the regulatory body that the full amount of the loan extended by Atlas to TVI Resource Development (Phils.), Inc. (TVIRD), including the interest that accrued has been repaid pursuant to the March 11, 2008 omnibus loan and security agreement executed by Atlas and TVIRD.

The $20-million loan is for the rehabilitation of Atlas’ copper mine in Cebu.

The original loan in July was for a term of 90 days at an interest rate of 15 percent.

Under the original agreement there was a provision that the “bridge loan is intended to be refinanced through the execution of a convertible loan agreement, the terms of which shall provide for a conversion price of P12.60 a share.”

Atlas is rehabilitating the copper mine of its subsidiary Carmen Copper Corp. in Toledo City in Cebu province.

Carmen Copper has produced 620 metric tons of copper concentrates following the commissioning of its plant in Toledo City.

Carmen’s current ore stockpiles exceed 235,000 MT. It also has a stockpile of 200 MT of pyrite concentrate, a valuable by-product.

Atlas has an offtake agreement to sell 60,000 dry metric tons of copper concentrate to MRI Trading AG.

As part of the agreement, MRI provided copper price hedging arrangements for the first 300,000 MT of copper concentrate at an average price of $ 7,612.50 per MT.