(Orvana Minerals, 23.Dec.2021) — Orvana Minerals Corp. (TSX: ORV) closed a €15mn syndicated loan with two Spain-based banks, through its wholly-owned subsidiaries in Spain, Orvana Minerals Iberia S.L.U. and Orovalle Minerals S.L. Orvana will use the proceeds to fund the development of the Taguas Project in Argentina and structural capital expenditures in Spain.
“The closing of the financing places us in a very strong position to materially advance the Taguas Project in Argentina and reinforce the growth strategy in Spain”. He added “We continue building on our relationship with long term financial partners, allowing us to access to financing at a very attractive interest rate,” said Orvana’s Chief Executive Officer, Juan Gavidi,
Key terms of the Syndicated Loan:
- Principal: €15mn;
- Interest Rate: Euribor plus 2.5% per annum;
- Structuring Fee: 1.5%
- Term: 4-year;
- Orvana’s obligations are secured by the pledge of Orovalle and Iberia’s shares;
- Among other obligations, the ratio net finance debt to EBITDA calculated based on the aggregated financial information of Orovalle and Iberia, must be, throughout the life of the financing, less than 3.5.
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