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mtpa in recent years but Grace against MATSA and a $200 million debt fa-
said the company was ready to im- cility secured against DeGrussa. A further
plement plans to rectify that. $US297 million will be funded through the
“We’ve assumed 4.5 mtpa in company’s $681 million cash reserves.
FY22,” he said. “The first priority Such a commitment necessarily makes
is to get to a consistent 4.7 mtpa MATSA Sandfire’s flagship asset but
in FY23 and sustaining that for the Simich was eager to reinforce the com-
Karl Simich LOM. Then there is some debot- pany’s commitment to the development of
tlenecking to get it to 5 mtpa for T3, the conversion of the DeGrussa plant to
ing more of an operator’s mindset and really very small capital.” treat ore from the Old Highway gold deposit
start to focus on lifting the performance and To fund the $2.57 billion deal, Sandfire and the longer-term.
getting more out of everything.” launched a $1.25 billion fully underwritten “It doesn’t detract from our focus, it gives
Sandfire expects sustaining capital re- capital raising, including a $120 million stra- us more capacity to do things,” Simich said.
quirements to be consistent over the current tegic placement to AustralianSuper, a $165 “We continue looking for things to move the
life-of-mine plan but it has already targeted million institutional placement and $963 mil- dial and that changes as we grow.”
the plant for improvement. Operations have lion entitlement offer. In addition, it has put
struggled to hit nameplate capacity of 4.7 together a $897 million debt facility secured

Adriatic raises construction funds

driatic Metals plc is poised to begin “The announcement of the proposed pro- would be used to start construction at Vares,
Aconstruction at its Vares silver project ject finance package is a significant mile- although it is unclear exactly when that will
in Bosnia and Herzegovina after unveiling a stone, demonstrating the extent of support occur.
proposed $US244.5 million finance packag- globally for the new investments in the Bal- The financing package comes less than
ing to break ground in the Balkans. kans, and Bosnia and Herzegovina in par- two months after the company reported a
The financing package is comprised of a ticular. At Adriatic, we have strived to move robust DFS on Vares which estimated an ini-
term sheet for $US142.5 million in debt fi- through the project development phases, at tial capex of $US168 million to deliver 7.3mt
nance from Orion Resource Partners (UK) pace and professionally, in order to deliver from the Rupice underground deposit over
LLP and an accompanying equity raise of value for shareholders and align the project a decade, producing an average 14.975
$US102 million. It also coincided with Sand- delivery with our local community in Vares. mozpa silver at an AISC of $US7.30/oz, gen-
fire Resources Ltd disposing of its 16% hold- “This outcome is a positive reflection of erating post-tax NPV of $US1.96 billion and
ing in Adriatic for $97 million. the team we have built at Adriatic in its short IRR of 134%.
Orion’s contribution of $US120 million in history, who over the past 12 months have The mine plan outlined in the DFS does
senior secured debt and a $US22.5 million delivered several critical outcomes that have not include the Veovaca open pit, about
copper stream remains sub- 11km from Rupice.
ject to ongoing due diligence Meanwhile, Sandfire man-
and definitive legally bind- aging director Karl Simich
ing documentation which is said the company’s now for-
expected to be completed mer shareholding in Adriatic
sometime this quarter. has been an “excellent invest-
Adriatic had no issues ment”.
raising $US52 million via a “Given that our focus is
conditional placing through firmly now on the MATSA
an accelerated bookbuild operation in Spain, which we
process which launched see as the backbone of our
immediately after Adriatic company moving forward, to-
announced the proposed fi- gether with our exciting devel-
nance package for the start opment and growth assets in
of construction at Vares on the Kalahari copper belt, our
October 13. The $US50 mil- holding in Adriatic is no longer
lion balance of the equity a strategic asset for the com-
raising was placed to Orion. pany,” Simich said.
“We are delighted to wel- Adriatic has pulled together a substantial funding package to begin “Adriatic is now firmly on
come Orion as a new part- construction at its Vares silver project, Bosnia and Herzegovina track to become the first pub-
ner in the Vares silver project licly-listed mining company in
and we thank Sandfire for their support of culminated in the success we have today. Bosnia and Herzegovina with permitting,
the company since its IPO in 2018,” Adriatic We look forward to continued success in offtake and project financing all well ad-
managing director Paul Cronin, who also the future as we transform from developer to vanced. We would like to take this opportu-
sold 3 million existing CHESS depositary in- producer.” nity to wish Paul and the Adriatic team all the
terests representing 12.8% of his fully diluted Adriatic indicated the net proceeds from best for the future.”
holding in the company, said. the equity raise of about $US97.8 million
– Michael Washbourne

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