Industria
ORVANA ANNOUNCES US $37.7M BONDS PLACEMENT IN BOLIVIA TO PARTIALLY FINANCE ITS RESTART PLAN FOR THE DON MARIO OPERATION
TORONTO , July 31, 2024 /PRNewswire/ -- (TSX: ORV) is pleased to announce the successful placement of 80.11% of the offered bonds in Bolivia , the keystone to financing its Oxides Stockpile Project at the Don Mario Operation. The bonds are being offered solely by Empresa Minera Paitití, S.A. ("EMIPA", the Company's subsidiary in Bolivia ) and only through the facilities of the Bolivian stock exchange. The Company is also reporting additional financing transactions related to the Oxides Stockpile Project closed by EMIPA in Bolivia , and the filing at the Bolivian stock market by EMIPA of its unaudited Financial Statements for the third quarter of the fiscal year 2024 ended June 30, 2024 ("Q3 FY2024"). Orvana is not offering any securities under the financings to restart the Don Mario Operation.
Juan Gavidia , CEO of Orvana Minerals Corp. stated: " .
Bond Program
In the first quarter of fiscal 2023, EMIPA initiated the process for the issuance of a US $47 million Bond Program through the Bolivian stock market (the "Bond Program"). In September 2023 , EMIPA received the Autoridad de Supervisión del Sistema Financiero ("ASFI") approval of its registration as an eligible Bond Issuer in the Bolivian stock market. In November 2023 , ASFI approved EMIPA's proposed Bond Program to be offered in the Bolivian stock market. In February 2024 , EMIPA notified the market in Bolivia of its intention to commence the bonds offering. On July 30, 2024 , EMIPA's agent commenced the bond offering on a best effort basis, achieving an 80.11% placement of the Bond Program by the end of the day thereof. The net proceeds of the Bond Program will be used to partially finance the Oxides Stockpile Project.
Bond Program highlights are:
Denomination: Bonos Emipa I
Type of security: Bonds, mandatory and redeemable in a fixed term
Currency: Bolivianos
Total Offering Amount: Bs 327.120.000,00 (US $47 million )
Offering deadline: Aug 19, 2024
Units: 32.712
Nominal value: Bs. 10.000,00 / unit
Term: 1,080 days (since issue date)
Interest rate: 6.8% nominal, annual and fixed
Security: Don Mario Plant – New circuits
Covenants: financial ratios (debt coverage, debt coverage third parties and leverage)
Bonds Program Placement – July 30, 2024 (first tranche):
Units placed: 26,206 (80.11% of the total units)
Total nominal value: Bs. 262,060,000 (US $37.65 million )
EMIPA is currently in the process of offering the remaining units under the Bond Program to complete the bond portion of the financing for the Oxides Stockpile Project.
EMIPA General Update
Through EMIPA, the Company is focused on restarting production at Bolivia developing the Oxides Stockpile Project (the "OSP"), consisting of a plant expansion to treat ore stockpiled in the Don Mario Operation from previous years of mining activity. After analyzing an economic way to treat its oxides stockpile, EMIPA concluded that an acid leaching circuit would maximize the value of the stockpile. EMIPA has completed the quality assurance (metallurgical) testing, engineering plans and CAPEX and OPEX estimates. Subject to securing sufficient funding, EMIPA is focused on commencing the construction of the OSP at the Don Mario mine and subsequently operate the treatment facility to treat the oxides. The OSP is projected to operate for 35 months, starting after a 13-month construction period.
The proposed OSP financing structure includes:
During the month of July 2024 , EMIPA completed the following:
EMIPA intends to use the net proceeds of the Bond Program, issuance of non-voting preferred shares and promissory notes to partially finance its proposed Oxides Stockpile Project and for general corporate purposes. As of the date hereof, EMIPA continues to work on closing the remaining Bond Program in Bolivia and working on additional financing to secure the remaining financing required for the OSP construction and ramp-up phases.
The Company will provide updates on the progress of EMIPA's Bond Program offering in Bolivia and the OSP development when further material information becomes available.
EMIPA reports in Bolivia Q3 FY2024 Financial Results
The Company's Bolivian subsidiary has filed at the Bolivian stock market its unaudited Financial Statements for the third quarter of the fiscal year 2024. In September 2023 , ASFI, Bolivia's financial regulator, approved and registered EMIPA as an eligible bond issuer on the Bolivian stock market. As a registered bond issuer on the Bolivian stock market, EMIPA is required to file its quarterly financial statements with ASFI.
The unaudited Financial Statements can be viewed at the following ASFI landing page (the "ASFI Page"):
https://www.asfi.gob.bo/index.php/registro-rmv/mv-entidades-inscritas-en-el-rmv.html
To search for EMIPA's financial statements, select the following at the ASFI Page:
Orvana's consolidated Q3 FY2024 financial highlights will be released with the third quarter financials, expected mid-August, 2024.
Orvana is a multi-mine gold-copper-silver company. Orvana's assets consist of the producing El Valle and Carlés gold-copper-silver mines in northern Spain , the Don Mario gold-silver property in Bolivia , currently in care and maintenance, and the Taguas property located in Argentina . Additional information is available at Orvana's website (www.orvana.com).
For further information please contact: Nuria Menéndez, Chief Financial Officer, E: nmenendez@orvana.com
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