Industria
ORVANA'S SUBSIDIARY PROVIDES NOTICE OF ITS PROPOSED BONDS OFFERING IN BOLIVIA
TORONTO , Feb. 21, 2024 /PRNewswire/ -- (TSX:ORV) is pleased to announce that its subsidiary in Bolivia ("EMIPA") has provided notice in Bolivia of its intention to offer bonds (the "Bonds Program") in the Bolsa Boliviana de Valores S.A. (the "Bolivian Stock Exchange") to partially finance its oxides stockpile project (the "OSP") at the Don Mario mine. The proposed bonds are being offered solely by EMIPA in Bolivia and only through the facilities of the Bolivian Stock Exchange. Orvana is not offering any securities under this proposed financing.
The OSP consists of a plant expansion to treat ore stockpiled at the Don Mario mine from previous years of mining activity. After analyzing an economic way to treat its oxides stockpile, EMIPA concluded that a sulfidation 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:
Bonds Offering in Bolivia
In the first quarter of fiscal 2023, EMIPA initiated the process for the issuance of a US $47 million Bond Program to be issued through the Bolivian Stock Market. 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. As a result of the aforementioned regulatory approvals, EMIPA is notifying the market in Bolivia of its intention to commence the Bonds Offering in the Bolivian Stock Exchange. Subject to the approval from the Bolivian Stock Exchange to commence the Bonds Program offering, EMIPA's agent, Panamerican Securities, S.A. will conduct the financing on a best efforts basis. The net proceeds of the Bonds Program will be used to partially finance the OSP.
The Bonds Offering will be conducted in Bolivia for a period of up to 180 days from the commencement of the offering that is subject to certain conditions including, but not limited to, the final acceptance of the Bolivian Stock Exchange. The minimum placement amount of the Bonds Offering is 80% of the approximately US $47 million offering.
The 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 )
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).
The Company will provide updates on the progress of EMIPA's Bond Program offering in Bolivia when further material information becomes available.
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).
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