UK-based exploration and development company Adriatic Metals (ASX:ADT) reports it has drawn down the third $30 million tranche of senior secured debt from investment management firm Orion Mine Finance.
The company says all conditions precedent for the third tranche of senior secured debt have been satisfied or waived, and the funds have been received. These funds will be used to continue the construction of Adriatic’s flagship Vares Silver Project in Bosnia and Herzegovina.
Adriatic reports private wealth management firm Canaccord Genuity, global investment bank RBC Capital Markets, and investment management services firm Stifel Nicolaus Europe acted as joint corporate brokers in the agreement.
Commenting on the debt drawdown, Adriatic Metals Chief Executive Officer (CEO) and Managing Director Paul Cronin says: “I am pleased that the next tranche debt has been received from Orion Mine Finance.
“These funds will be used to continue the rapid construction of the world-class Vares Silver Project, which will deliver concentrate production in November 2023”
These funds will be used to continue the rapid construction of the world-class Vares Silver Project, which will deliver concentrate production in November 2023. We remain fully funded.”
On 10 January 2022, Adriatic announced the completion of a $142.5 million debt financing package with Orion comprising $120 million senior secured debt, and $22.5 million copper stream.
The company says the first draw down of $30 million was received on 30 December 2022, while the second $30 million of the Orion debt package and the copper stream were received on 13 February 2023. Adriatic reports the fourth tranche of the remaining $30 million will be drawn down when required.
A Definitive Feasibility Study (DFS) for the project completed in 2021 revealed a post-tax net present value (NPV) of US$1.062 billion, along with an internal rate of return (IRR) and a capital expenditure (capex) of US$168 million.
Adriatic Metals is a UK-based precious and base metals developer focused on advancing the Vares Silver Project in Bosnia and Herzegovina, as well as the Raska Project in Serbia.
The company reports the Vares project is fully funded to first concentrate production expected in Q4 2023, and notes it plans to continue exploration across the 42km-square concession package concurrently with ongoing construction activities.
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