Atlas raises $300M for expansion, debt payment

Atlas Consolidated Mining and Development Corp. disclosed on Monday that it was financing its mining expansion plans and paying loans with the proceeds of a dollar-denominated fixed-rate notes issuance worth $300 million.

The listed company said its wholly owned subsidiary, Toledo copper mine operator Carmen Copper Corp. (CCC), had issued the US dollar-denominated fixed-rate notes worth $300 million with a tenor of five years and five days.

The parent company said the notes, which were issued at 98.95 percent of face value—will pay interest semi-annually at the rate of 6.5 percent and will carry a yield to maturity of 6.75 percent.

“The proceeds of the issue will primarily be used to discharge certain existing loans of CCC and to finance CCC’s expansion plans,” Atlas said.

BDO Capital & Investment Corp. and Credit Suisse Securities (Europe) Limited acted as joint lead managers and joint bookrunners for the offering, Atlas said.

The parent firm earlier reported that CCC was on track with the open-pit development of the higher-grade Carmen ore body.

Atlas said CCC was also “expediting” the finalization of its plans for a phased expansion starting with the initial target of raising its current throughput capacity of 40,000 tons per day to 60,000 tons per day.

Under its work program, Atlas intends to conduct exploration works around its subsidiary’s mining area.

CCC posted a net income of P2.541 billion for 2011, nearly thrice the 2010 income of P670 million.

Atlas disclosed that CCC had improved its performance in 2011 from 2010 with a 41.2 percent growth in gross revenue to P12.498 billion from P8.851 billion.

Atlas said CCC registered an increase in the volume of copper shipped to 68 million pounds from 58.7 million pounds.