DJ Adriatic Metals to Raise Up to $244.5M for Vares Silver Project

By Joe Hoppe

Adriatic Metals PLC said Tuesday it will raise up to $244.5 million through an equity raise and debt financing, which will be used to begin construction of the Vares silver project in Bosnia-Herzegovina.

The exploration and development company said that it has signed a term sheet with Orion Resource Partners for a $142.5 million debt-financing package, comprised of $120 million in senior secured debt and a $22.5 million copper stream. The debt financing is subject to ongoing due diligence and documentation, and is expected to be completed in the fourth quarter.

Adriatic Metals said that it also expects to raise up to $102 million in net proceeds from a proposed equity fund-raise, through a conditional placing raising gross proceeds of up to $52.0 million and a conditional equity subscription of up to $50 million.

The company added that it will place shares at a price of 151.74 pence ($2.06) a share, representing a 10.7% discount to the 10-day volume weighted average price.

Canaccord Genuity Ltd., RBC Europe Ltd. and Stifel Nicolaus Europe Ltd. are acting as joint bookrunners.

Shareholdings immediately before admission will be diluted by around 18.7% as a result of the fund-raise.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

October 12, 2021 13:06 ET (17:06 GMT)

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