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Adriatic Metals PLC on Monday said it has drawn down on the second tranche of its senior secured debt in order to continue constructing the Vares project in Bosnia & Herzegovina.
Adriatic Metals is a Cheltenham, England-based precious and base metals developer, with licences in Bosnia & Herzegovina and Serbia. The Rupice underground deposit comprises part of the Vares silver project, which is the company’s flagship asset in Bosnia.
The company has drawn down on the second $30 million tranche of senior secured debt and the $22.5 million copper stream from Orion Mine Finance.
On January 10, Adriatic completed a $142.5 million debt financing package with Orion, comprising $120 million senior secured debt and a $22.5 million copper stream. The first draw down of $30 million of the Orion debt package was received on December 30. The third and fourth tranches of the remaining $60 million of senior secured debt will be drawn down in 2023 when required, Adriatic said.
The $142.5 million Orion debt package and institutional equity raise of $102 million make up the total $244.5 million Vares Project financing package. The project is fully funded, with first concentrate production expected in the third quarter of this year.
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