REG - ATOME PLC - Villeta Project Update

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RNS Number : 8138H  ATOME PLC  10 June 2026

 

For immediate release

10 June 2026

 

ATOME PLC

("ATOME" or the "Company")

 

Villeta Project Update

 

ATOME announced on 13 May 2026 that, following approval of the Villeta
Transaction at the General Meeting held earlier that day, the Company was now
working to satisfy all conditions precedent prior to First Disbursement in
respect of the Villeta Project financing.

 

The conditions precedent under the Common Terms Agreement included the
execution of an already agreed form of power purchase agreement with ANDE
("Agreed PPA"), the Paraguay State-owned electricity supplier, incorporating
the electricity tariffs and terms which had been established and mandated by a
signed Presidential Decree issued by the President of Paraguay on 16 January
2026 ("Decree"). The Agreed PPA was intended to replace the previous executed
variable rate power purchase agreement ("Original PPA") with a fixed rate
agreement for the period of the project funding in accordance with the tariffs
set out in the Decree.

 

The Company became aware yesterday, following a media report in Paraguay, that
the Decree, had without prior notice or consultation been cancelled and
replaced by a further decree ("New Decree"). Accordingly, the Agreed PPA has
not yet therefore been executed as anticipated, notwithstanding that the form
had been previously agreed with ANDE.

 

Under the terms of the New Decree, ANDE has been entrusted to establish
conditions to facilitate investments into Paraguay, including the proposed
investment by ATOME in the Villeta Project, under terms to be agreed and the
previous tariffs in the Decree have been withdrawn.

 

ATOME is seeking at the earliest available opportunity to clarify with ANDE
and the Government the status of the Agreed PPA, the applicable electricity
tariffs, and the ongoing arrangements between ATOME and ANDE, which underpin
the project funding and upon which ATOME and its major stakeholders in the
Project have relied through the terms of the now cancelled Presidential
Decree. ATOME is consulting with those key project multinational DFI
stakeholders, including International Finance Corporation - a member of the
World Bank Group, IDB Invest, the private sector arm of the Inter-American
Development Bank Group and the European Investment Bank.

 

Shareholders should note for the sake of completeness that in the light of the
above at this stage there is no certainty as to the outcome of these
discussions and whether or not ATOME will be able to reach agreement with ANDE
in a manner and form which satisfies the outstanding condition precedent to
First Disbursement to the approval of the Project stakeholders.

 

Peter Levine, Chair of ATOME PLC, commented:

 

"The Government is a great supporter of our Project which is one of strategic
importance to Paraguay creating 4,000 new local jobs during construction and
1,300 new jobs during operations and placing Paraguay on the map of
international fertiliser producers. We had received assurances and guarantees
at the highest level that the Agreed PPA would be executed in accordance with
the Decree before the end of June. This was conveyed to our key Project
investors in whom Paraguay relies for its future growth and inward
investments. We are therefore perplexed by this unforeseen development but
will nevertheless continue to work constructively with ANDE and the Government
of Paraguay with the aim to resolve this issue urgently."

 

A further update announcement will be made in due course.

 

For more information, please visit https://www.atomeplc.com or contact:

 

 ATOME PLC                                +44 (0) 113 337 2210
 Nikita Levine, Investor Relations
info@atomeplc.com

 Beaumont Cornish (Nominated Adviser)     +44 (0) 20 7628 3396
 Roland Cornish, Michael Cornish

 SP Angel (Broker)                        +44 (0) 20 3490 0470
 Richard Hail, Jen Clarke
 FTI Consulting (Communications Adviser)  +44 (0) 20 3727 1000

                                        atome@fticonsulting.com (mailto:atome@fticonsulting.com)
 Elizabeth Adams, Ben Brewerton

 

 

 

IMPORTANT NOTICE

 

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and
regulated in the United Kingdom by the FCA, is acting as nominated adviser to
the Company. Beaumont Cornish will not regard any other person as its client
and will not be responsible to anyone else for providing the protections
afforded to the clients of Beaumont Cornish or for providing advice in
relation to such proposals. No representation or warranty, expressed or
implied, is made by Beaumont Cornish or any of its directors, officers,
partners, employees, agents or advisers as to the contents herein including in
its accuracy, completeness or verification, or for any other statement made or
purported to be made by it or on its behalf, in connection with the
Fundraising or Transaction. Beaumont Cornish as nominated adviser to the
Company owes certain responsibilities to the London Stock Exchange which are
not owed to the Company, the Directors, Shareholders or any other person.

 

 

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