JOHANNESBURG (miningweekly.com) – Aim- and TSX-listed Atalaya Mining has concluded a $14-million copper concentrate prepayment agreement with commodity trading company Transamine Trading for a mine in Spain.
Transamine will receive a guaranteed supply of 60 000 dry metric tons of copper concentrate which it will pay for at market rates.
The funding proceeds will be used to cover part of the short-term working capital requirements to support the company through the ramp-up phase.
Atalaya declared commercial operation at its Proyecto Riotinto project, in Andalucía, Spain on February 1, with the Phase 1 operation producing five-million tonnes a year of copper.
The expansion will see production rise to 9.5-million tonnes a year, with the project expected to reach nameplate capacity in January.
“Ramp up of production is progressing as planned, with the plant now running at 8.3-million tonnes a year annualised capacity and having produced 3 175 t of copper during August,” says Atalaya CEO Alberto Lavandeira.
He adds that accumulated production for July and August is already 26% higher than the production of the second quarter of 2016, and is an indication of the good progress of the ramp up of the expansion project that is expected to be in full capacity by the end of this year.
The facility’s duration will be from January 1, 2017, to December 31, 2018.