Orvana Minerals’ Bolivian unit to offer $47 million 6.8% bonds

By Marisa Wong

Los Angeles, Feb. 21 – Orvana Minerals Corp.’s subsidiary in Bolivia (“Emipa”) has given notice of its intention to offer bonds on the Bolivian stock exchange (Bolsa Boliviana de Valores SA), according to a press release.

Emipa had already initiated the process for issuing the bonds through the Bolivian stock market in the first quarter of fiscal 2023, according to the release. In September, the company received approval of its registration as an eligible bond issuer, and in November the bond program was approved. The issuer is now awaiting approval from the Bolivian stock exchange to launch the offering.

Agent Panamerican Securities, SA will conduct the financing on a best-efforts basis.

The offering will be conducted for a period of up to 180 days.

The minimum placement amount is 80% of the roughly $47 million offering.

The bolivianos-denominated bonds are expected to have a tenor of 1,080 days and a fixed coupon of 6.8%. They will feature redemption options and include some financial covenants.

Proceeds will be used to partially finance the issuer’s oxides stockpile project at the Don Mario mine. The project is estimated to operate for 35 months, starting after a 13-month construction period. The proposed financing structure includes the $47 million bonds offering as the main financing source, $33 million working capital during construction and ramp-up phases and $3 million bank debt in Bolivia, which had already been secured in fiscal 2023.

Orvana noted that the proposed bonds are being offered solely by Emipa in Bolivia and only through the facilities of the Bolivian stock exchange; Orvana is not offering any securities under this proposed financing.

Toronto-based Orvana is a multi-mine gold-copper-silver company.

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