(Alliance News) - Adriatic Metals PLC on Friday said it made the first drawdown of its USD142.5 million debt packages with asset management firm Orion Resource Partners LLP.
Adriatic Metals is a Cheltenham, England-based exploration and development company with licences in Bosnia & Herzegovina and Serbia.
The company said all conditions for the first USD30 million tranche of senior secured debt have been satisfied, apart from those relating to certain Bosnian law security documents, which will be satisfied in January. The funds will be used to continue the construction of its Vares silver project in Bosnia & Herzegovina, which is over 50% complete.
The debt financing package was announced in January, and it comprises USD120 million senior secured debt and USD22.5 million copper stream.
The remaining conditions precedent for the copper stream will be satisfied in January 2023, Adriatic Metals added and, following completion, these funds will also be drawn down.
Adriatic Metals said the second, third and fourth tranches of the senior secured debt will be drawn down in 2023 when required.
The debt package and institutional equity raise of USD102 million that closed in October last year make up the total USD244.5 million Vares project financing package. The project is fully funded, with first concentrate production expected in the third quarter of 2023.
Adriatic Metals said Orion also subscribed for USD50 million for 24.2 million shares in the equity raise, making it an 8.9% shareholder in the company.
Shares in Adriatic Metals were up 0.1% to 173.20 pence on Friday morning in London.
"Orion are aligned with our commitment to responsible mining and sustainability, via a USD100,000 donation to the Adriatic Foundation, which will support valued community and environmental initiatives in Vares & Kakanj," said Paul Cronin, managing director and chief executive of Adriatic Metals.
By Jaskeet Briah, Alliance News reporter
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Adriatic Metal. (ADT1)