Toledo - Cashflow from the world's 3rd largest Nickel Resource

Once it raised funds at the time of the placing Toledo Copper Corporation lent US$3 million to Atlas to fund the bankable feasibility programme at Toledo and part of this was used to repay the original loan to Mr Ramos. On the assumption that the study is positive Toledo will secure ownership of 40 per cent of the mine, but may have to pay a further US$15 million towards project finance. This is doubtful, however, as the Japanese and Chinese copper companies vying for offtake agreements are likely to want to take equity interests and may well come up with the further US$10 million in subordinated debt that might be due from Toledo. Annual production of 110 million lbs copper, 56,000 ozs gold and 100,000 ozs silver is envisaged for the renewed operation.