(Alliance News) - Adriatic Metals PLC announced on Monday the completion of a USD142.5 million debt financing package with Orion Resource Partners LLP and its wholly-owned subsidiary Adriatic Metals Trading & Finance BV.
The package consists of USD120.0 million of senior secured debt and USD22.5 million copper stream. The first drawdown will take place in the second quarter of 2022, subject to customary conditions.
The deal means financing for Adriatic's USD244.5 million Vares Silver Project in Bosnia & Herzegonia is now complete, after an institutional equity raise of USD102 million in October. Orion also contributed USD50 million to the institutional equity raise, making it a 9.1% shareholder in Adriatic.
First production from the Vares Silver Project is expected in the second quarter of 2023.
Orion will also donate USD100,000 annually to the Adriatic Foundation, during the repayment of the senior secured debt.
The foundation was created in June 2021 to support communities near the Vares silver project on initiatives such as education, healthcare, and environmental protection. A financial partner for the deal, Tamesis Partners LLP, will contribute USD10,000 of its fee to the foundation.
TerraFranca Advisory LLP also acted as a financial advisor, and Herbert Smith Freehills acted as legal adviser.
Paul Cronin, Adriatic's managing director and chief executive officer, commented: "Adriatic Metals has entered a new phase with the Vares Silver Project fully funded through to production. This significantly de-risks the company and puts us in a strong position to become Europe's next miner, providing the continent with locally sourced, strategic metals."
Adriatic's share price rose by 0.6% to 130.74 pence each on Monday afternoon in London.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Adriatic Metal. (ADT1)