UK-based exploration and development company Adriatic Metals has received firm commitments from investors to raise approximately A$80m ($50.01m) in equity through a two-tranche institutional placement.
The funds will be used to secure long-lead items for accelerating the Vares processing plant expansion and support production growth at the Rupice Mine in Bosnia and Herzegovina.
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The placement will be divided into two tranches and issue a total of 20,512,821 new chess depositary interests (CDIs) at A$3.90 per new CDI.
Tranche one will raise A$43.3m through 11,092,377 new CDIs, leveraging the company’s existing placement capacity.
Tranche two aims to raise A$36.7m with 9,420,444 new CDIs, pending shareholder approval at a general meeting slated for next month.
The new CDIs from tranche one are expected to begin trading on the Australian Securities Exchange (ASX) on 25 February 2025 while those from tranche two, subject to resolutions, will trade around 20 March 2025.
Adriatic Metals managing director and CEO Laura Tyler said: “The $50m placement secures critical long-lead items and enables us to accelerate the expansion and achieve the 1.3mtpa [million tonnes per annum] target by 2027. Additionally, the funds will help de-risk the ongoing ramp-up, with a full throughput rate of 0.8mtpa expected in the second half of 2025.”
The issuance of new CDIs represents 5.95% of the company’s issued capital post-placement.
Major shareholders, including Helikon Investments, L1 Capital, and Paul Cronin (co-founder and former MD and CEO of Adriatic), plan to participate in the offer.
With the placement effective from 25 February 2025, Adriatic Metals’ issued share capital will consist of 335,569,260 ordinary shares, each with one vote.
Tyler added: “This achievement reflects the confidence our investors have in our company, our team, and the long-term value of our operations. We would like to thank our shareholders – both new and existing – for their trust and support.
“With this additional capital, we are well-positioned to accelerate our initiatives, deliver growth and build a lasting positive legacy for all our stakeholders.”
Ausenco’s technical study confirmed that the Vares processing plant expansion can increase nameplate production capacity from 0.8mtpa to 1.3mtpa with a $25m capital investment.
This 63% capacity expansion, combined with higher mine production, is expected to enable the company to produce more than 20 million ounces of silver equivalent grade (AgEq) annually, positioning the Vares silver operation among the world’s “largest” primary silver producers.
Canaccord Genuity, RBC Europe, and Stifel Nicolaus Europe are serving as joint lead managers and joint bookrunners for the placement, with Canaccord Genuity acting as the global coordinator.
