Adriatic Metals proposes project financing package for silver project

Chicago, Oct. 13 – Adriatic Metals plc proposed a project finance package of $244.5 million for the construction of the Vares Silver Project, according to a press release.

The financing package includes $120 million of senior secured debt from Orion Resource Partners (UK) LLP.

The $142.5 million term sheet also includes a $22.5 million copper stream.

The senior secured debt is expected to be made available to Eastern Mining in four equal tranches of $30 million.

The tenor will be four and a half years.

Interest will be Libor plus 750 basis points, with a Libor floor of 0.5%.

Interest will start to accrue on the date of each drawdown.

There is an original issue discount of 98 for each tranche.

If the senior secured debt with Orion is not completed, the company will consider mezzanine debt, bonds or equity-linked securities. However, currently the company expects the financing to be completed by the end of the fourth quarter.

The company is also intending to conduct a $102 million equity raise.

Tamesis Partners LLP and Terrafranca Advisory Ltd. are acting as the company’s joint financial advisers in relation to the senior secured debt.

Adriatic Metals is based in the United Kingdom and is the owner of the Vares Mining Concession in Bosnia and Herzegovina.

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