Orvana Minerals Corp. (TSX:ORV) is pleased to confirm its December 21, 2018 press release, by announcing the closing of a €6 million (approximately US$ 6.84 million) credit facility through its wholly-owned subsidiary, OroValle Minerals S.L. The Credit Facility provides funds at an attractive interest rate of 2.55%, and is better aligned with OroValle’s successful operational turnaround schedule of four years (term period).
Orvana’s Chief Executive Officer, Juan Gavidia said, “We are very pleased to close this financing with three Spanish financial institutions at a competitive cost of capital, and most importantly, with a term that matches OroValle’s operational strategy of lowering unitary costs and extending life-of-mine of operations, while maximizing cash flow.”
The Credit Facility, signed with Spain-based BANKIA, BBVA and SABADELL banks, bears a fixed interest rate of 2.55% with semi-annual repayments over a four-year term; and is subject to a 2% commission fee. Orvana’s obligations are secured by: (i) the pledge of OroValle’s shares (El Valle Mine in Spain); (ii) the pledge of OroValle’s doré sale proceeds; and (iii) a 12.5% restricted cash requirement.
In addition to continuing to build on our relationship with financial partners in Asturias, Northern Spain, Orvana continues its support and contributions to the communities in Asturias, following its core value of good social corporate citizenship.
Concurrent with the closing of the Credit Facility, Orvana has repaid the Samsung C&T’s Prepayment Facility, originally established in August 2016. The Company continues its excellent commercial partnership with Samsung C&T for the sale of copper concentrate from its Don Mario Mine and gold doré from its El Valle Mine.
About Orvana Minerals
Orvana is a multi-mine gold-copper-silver company. Orvana’s operating assets consist of the producing El Valle and Carlés gold-copper-silver mines in northern Spain and the producing Don Mario gold-silver operations in Bolivia.
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