Acquisition of the Masa Valverde polymetallic VMS project in Huelva, Spain

21 October, 2020

Atalaya Mining plc (AIM: ATYM, TSX: AYM), is pleased to announce that it has entered into a definitive purchase agreement to acquire  100% of the Masa Valverde polymetallic project located in Huelva, Spain (“Proyecto Masa Valverde” or “Masa Valverde”) through the acquisition of 100% of a Spanish company (altogether the “Transaction”).

Under the terms of the agreement, Atalaya will make an aggregate €1.4 million cash payment in two installments of approximately the same amount. The first payment will be made when the mining permit is granted and the second when first production is achieved from the concessions.

Transaction highlights

  • Acquisition of one of the largest undeveloped volcanogenic massive sulphide (“VMS”) deposits in the prolific Iberian Pyrite Belt and 28kms SW of Proyecto Riotinto.
  • Historic total inferred resources at the Masa Valverde deposit of 66Mt at 0.67% Cu, 1.92% Zn, 0.90 % Pb, 34 g/t Ag and 0.63 g/t Au (or 2.57% Cu eq.) divided in several zones as described later in this note.
  • Further infill drilling will commence shortly with the aim of upgrading current resources and providing the basis to complete scoping and pre-feasibility studies reports.
  • Strong exploration upside potential in the immediate surroundings as evidenced by the recent discovery of the Majadales sulphide body, included in the Transaction and located 1.2km ESE of Masa Valverde, which is not included in the historic resource estimate.
  • Several similar targets remain pending for systematic drilling within the two exploration permits acquired, which cover an area of approximately 4,000 hectares.
  • Potential synergies with Atalaya’s existing Riotinto operations should assist the route towards permitting and mine development.

 

Alberto Lavandeira, CEO, commented:

“We are extremely pleased to announce the acquisition of Proyecto Masa Valverde at an attractive cost and at the right development stage. Masa Valverde already has a significant defined resource which could increase during subsequent evaluation phases, paving the way for quick project development. The proximity to our Riotinto operation, which is on track to meet its previously announced 2020 production guidance of 55,000 – 58,000 tonnes of copper during 2020, and the experience gained during its development and construction, will be fundamental as we convert this project into a mine.”

…download Proyecto Masa Valverde overview

This announcement contains information which, prior to its publication constituted inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

Newgate Communications Elisabeth Cowell / Adam Lloyd / Tom Carnegie + 44 20 3757 6880
4C Communications Carina Corbett +44 20 3170 7973
Canaccord Genuity (NOMAD and Joint Broker) Henry Fitzgerald-O’Connor / James Asensio +44 20 7523 8000
BMO Capital Markets (Joint Broker) Tom Rider / Michael Rechsteiner / Neil Elliot +44 20 7236 1010
Peel Hunt LLP (Joint Broker) Ross Allister / David McKeown +44 20 7418 8900

 

About Atalaya Mining Plc

Atalaya is an AIM and TSX-listed mining and development group which produces copper concentrates and silver by-product at its wholly owned Proyecto Riotinto site in southwest Spain. In addition, the Group has a phased, earn-in agreement for up to 80% ownership of Proyecto Touro, a brownfield copper project in the northwest of Spain. For further information, visit www.atalayamining.com

 

Qualified Person Statement

Alberto Lavandeira has reviewed the technical information contained within this announcement in his capacity as a Qualified Person, as required under the AIM Rules for Companies. Alberto Lavandeira is the Chief Executive Officer for the Company and is a member of good standing with the Association of Mining Engineers of Spain, with over 41 years’ experience.