ATLAS CONSOLIDATED: Deutsche Bank to Arrange US$100 Million
Company Reporter, Jan. 4, 2007
The Board of Directors of Atlas
Consolidated Mining and
Development Corp. disclosed with the Philippine Stock Exchange that the company's subsidiary, Carmen Copper Corp., has engaged
Deutsche Bank AG as arranger with respect to a US$100 million loan facility to be obtained by Carmen Copper.
According to the PSE Disclosure, the entire amount of the loan will be guaranteed by the Philippine Export-Import Credit
Atlas Consolidated and Deutsche Bank hope to complete due diligence review and documentation by February 2007.
Carmen Copper will use the proceeds of the loan to finance the rehabilitation of Atlas' copper mine in Toledo City, Cebu. Carmen Copper is the operator of the Toledo Copper mine.
As reported by the Troubled Company Reporter - Asia Pacific on Sept. 12, 2006, initial rehabilitation work has already
commenced on Atlas' Toledo copper mine, on the basis of confirmation from Crescent Asian Special Opportunities Portfolio
of an additional US$13 million drawdown on its US$33 million funding package in favor of Carmen Copper.
The Atlas Board also disclosed that an operating agreement between Atlas and Carmen Copper that formed part of the lot of
financing agreements between Atlas and Crescent Asian has been approved by the Mining and Geosciences Bureau.
Headquartered in Mandaluyong City, Philippines, Atlas Consolidated Mining and Development Corporation was established
through the merger of assets and equities of three Soriano-controlled pre-war mines, the Masbate Consolidated Mining
Company, IXL Mining Company and the Antamok Goldfields Mining Company. The Company is engaged in mineral and metallic
mining and exploration that primarily produces copper concentrates and gold with silver and pyrites as major by-products. The
Company's copper mining operations are centered in Toledo City, Cebu, where two open pit mines, two underground mines and
milling complexes (concentrators) are located. The Cebu
copper mine ceased operations in 1994. Activities after the shutdown
were limited to safeguarding and maintaining the property, plant and equipment at the minesite. The closure has brought huge
losses to the mining firm.
In January 2004, Atlas decided to rehabilitate the company and its assets since copper and nickel prices have recovered.
According to a TCR-AP report on June 1, 2006, Atlas reported a capital deficiency of PHP3.035 billion for the year ended
December 31, 2005. Moreover the Company's auditor, Jaime F.
Del Rosario, of Sycip Gorres Velayo, raised substantial doubt on the Company's ability to continue as a going concern.
As of Dec. 21, 2006, Atlas Consolidated posted total assets of US$33.59 million, and total shareholders' equity deficit of