(Alliance News) - Adriatic Metals PLC said on Tuesday it has drawn down the third USD30 million tranche of senior secured debt from Orion Mine Finance.
Adriatic Metals is a Cheltenham, England-based precious and base metals exploration and development company. The firm owns the Vares silver project in Bosnia and Herzegovina.
In January of last year, Adriatic Metals announced the completion of a USD142.5 million debt financing package with Orion, which was comprised of a USD120 million senior secured debt and USD22.5 million copper stream.
The first draw down of USD30 million of the Orion debt package was received in December last year, while the second tranche, as well as the USD22.5 million copper stream, were received in February of this year.
Adriatic Metals said the fourth tranche of the remaining USD30 million of senior secured debt will be drawn down "when required".
The USD142.5 million Orion debt package and an institutional equity raise of USD102 million 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 this year, Adriatic Metals said.
Chief Executive Officer Paul Cronin said: "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 first concentrate production in November 2023. We remain fully funded."
Shares in Adriatic Metals were down 0.1% at 194.80 pence each in London on Tuesday afternoon.
By Sabrina Penty; Alliance News reporter
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Adriatic Metal. (ADT1)