Atlas Consolidated Mining and Development Corporation is securing a $25-million convertible loan to refinance debt and fund capital expenditures.

In a disclosure to the Philippine Stock Exchange (PSE), Atlas said its board of directors approved during a special meeting, resolutions authorizing Atlas to obtain from Banco de Oro Unibank, Inc. and Globalfund Holdings, Inc. a convertible loan facility.

The proceeds of the loan will be used to fully pay Atlas’ outstanding obligations under its loan agreement with the various funds managed by the Spinnaker Capital Group.

Part of the proceeds will also be used to fully pay certain advances made by Alakor Corporation and fund the capital expenditures of Atlas’ subsidiary Carmen Copper Corporation through equity contributions and advances.

The Convertible Loan and Security Agreement which was executed on November 27, 2009 with respect to the loan provides for a mandatory conversion of the loan into equity of Atlas through the issuance of Atlas common shares to the lenders at P10.00 per share.

This will be upon confirmation that the volume weighted average price of Atlas shares for 20 consecutive trading days at the PSE is at least P13.00.

The accrual of interest on the loan will be at the rate of 10 percent per annum.

The performance by Atlas of its obligations under the loan agreement will be primarily secured through the pledge by Alakor Corporation and Martin Buckingham of their Atlas shares in favor of the lenders.