Adriatic locks down debt for Vares
PERTH (miningweekly.com) – Dual-listed Adriatic Metals has completed a $142.5-million debt financing package with Orion Resource Partners as part of its funding solution to develop the Vares silver project, in Bosnia & Herzegovina.
The debt funding forms part of a greater $244.5-project financing package unveiled last year, and includes $120-million in senior secured debt and a $22.5-million copper stream.
“Adriatic Metals has entered a new phase with the Vares Silver project fully funded through to production. This significantly derisks the company and puts us in a strong position to become Europe’s next miner, providing the continent with locally sourced, strategic metals,” said Adriatic MD and CEO Paul Cronin.
“We are delighted to have Orion on board and believe it’s a strong validation of the potential of the Vares Silver project. Critical to achieving production at Vares is our social licence to operate, which we have secured by taking a responsible approach to developing and working towards the creation of a positive long-term legacy. Orion’s contribution to the Adriatic Foundation emphasises its alignment with our commitment to the community.”
First drawdown of the Orion debt package is expected in the second quarter of this year, following the satisfaction of conditions precedent.
A definitive feasibility study estimated that the project would require a capital investment of $168-million to develop, and could produce 14.9-million ounces a year of silver equivalent during the first five years of its ten-year mine life.
The study estimated that the project would have a post-tax net present value of $1.06-billion and an internal rate of return of 134%, with cash costs estimated at $7/oz of silver equivalent.
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