The proceeds of the proposed equity fundraise are expected to be £72.2m and will be used to build the Vares Silver project


Adriatic Metals and Orion Resource Partners to finance VARES SILVER PROJECT. (Credit: Khusen Rustamov from Pixabay.)

Adriatic Metals Plc (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) is pleased to announce a proposed project finance package of approximately US$244.5 million before expenses for the construction of the Company’s flagship Vares Silver Project (the “Vares Silver Project”), further to the completion of the definitive feasibility study (“DFS”) announced on 19 August 2021.

Proposed Equity Fundraise

The Placing will comprise the issue of new ordinary shares of 1.3355 pence each in the capital of the Company (the “New Ordinary Shares”) and, where CDIs are issued, CDIs in respect of such New Ordinary Shares quoted on the ASX (together, the “Placing Securities”) to both existing and new institutional investors in the Company. An accelerated bookbuild process (the “Bookbuild”) will be launched immediately following the release of this Announcement.

Orion has agreed to subscribe for 24,191,000 New Ordinary Shares at the Placing Price for gross proceeds of approximately A$67.7 million (approximately US$50.0 million) (the “Orion Subscription Securities”, and together with the Placing Securities, the “Fundraise Securities”). The Orion Equity Subscription is conditional inter alia upon the completion of the Placing.

Paul Cronin, CEO, commented: “We are delighted to welcome Orion as a new partner in the Vares Silver Project and we thank Sandfire for their support of the Company since its IPO in 2018. The announcement of the Proposed Project Finance package is a significant milestone, demonstrating the extent of support globally for new investments in mining in the Balkans, and Bosnia & Herzegovina in particular. At Adriatic we have strived to move through the project development phases, at pace and professionally, in order to deliver value to our shareholders and align the project delivery with the aspirations of our local community in Vares. This outcome is a positive reflection of the team we have built at Adriatic in its short history, who over the past 12 months have delivered several critical outcomes that have culminated in the success we have today. We look forward to continued success in the future as we transform from developer to producer.”

Source: Company Press Release