Adriatic Metals Completes Debt Financing With Orion



Adriatic Metals PLC has informed that following the announcement of October 12, 2021, the final documentation of the USD 142.5 million debt financing package (Orion Debt Package) with Orion Resource Partners (UK) LLP has been completed. by the company’s wholly owned subsidiary, Adriatic Metals Trading & Finance BV

The terms of the Orion Debt Package have not changed since it was originally announced on October 12, 2021 and include:

  • Senior Secured Debt of US $ 120 million (Senior Secured Debt).
  • Copper flow of US $ 22.5 million.

The first drawdown on Orion’s debt package is expected to take place in 2Q22, following the Company’s satisfaction of customary conditions precedent to financial close.

The $ 244.5 million Vares Silver project financing package is now finalized following the execution of Orion’s debt financing, as well as the $ 102 million institutional capital increase that was closed on October 13, 2021. Orion has subscribed for $ 50 million (24,191,000 common shares) in the institutional fundraising, making it a 9.1% shareholder of Adriatic. The company is now fully funded for the production of the Vares Silver project. The first production is expected in 2Q23.

Adriatic Foundation

The Project Finance Debt Package includes a donation from Orion to the Adriatic Foundation of USD 100,000 / year during the senior secured debt repayment period. Tamesis Partners LLP also pays 10,000 USD of its fees to the foundation. The Foundation was established in June 2021 with the aim of supporting the communities around the Vares Silver Project, through initiatives designed to create a positive long-term legacy, as well as alignment between the company and the communities that the Foundation supports. The foundation’s initiatives are specifically focused on improving local education, healthcare and environmental protection.

Financial and legal advisers

Tamesis Partners LLP and Terrafranca Advisory Ltd acted as joint financial advisers to the company, and Herbert Smith Freehills acted as legal counsel to the company with respect to senior secured debt and copper flow.

Paul Cronin, Managing Director and CEO of Adriatic, said: “Adriatic Metals has entered a new phase with the Vares Silver project fully funded through production. This dramatically reduces business risk and puts us in a strong position to become Europe’s next miner, supplying the continent with locally sourced strategic metals.

“We are delighted to have Orion on board and believe this is a strong validation of the potential of the Vares Silver project. Our social license to operate is essential to making production in Vares possible, which we have achieved by taking a responsible approach to development and working to create a positive long-term legacy. Orion’s contribution to the Adriatic Foundation emphasizes its alignment with our commitment to the community.

Michael Barton, Portfolio Manager at Orion, commented: “We are delighted to have finalized the financing of the project with Adriatic, which marks the culmination of a considerable amount of work from our two respective teams. Since we first discovered the project in 2018, we have been impressed with the potential of the project. We look forward to developing our working relationship with the company and helping to realize this potential as the Adriatic evolves.

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