Adriatic Metals in $46m raising ahead of November production
Dual listed silver and zinc explorer Adriatic Metals had its brokers drumming up bids into a $US30 million ($45.6 million) placement on Tuesday morning, ahead of first production expected in November.
Adriatic is raising $46 million.
Shares were being offered at $3.30 apiece, the same as Monday’s close but a slim 5.1 per cent discount to the 10-day volume weighted average price.
Potential investors were told the proceeds would ramp up exploration at Rupice and Rupice Northwest, including an additional 40,000 metres of drilling. It would also fund general working capital and equipment related to drilling.
The term sheet said Adriatic’s flagship project Vares in Bosnia & Herzegovina mined its first ore in July, and would produce the first batch of silver-lead and zinc concentrates in November. Construction is 84 per cent done, with the project fully funded. It also has offtake agreements in place with strong counterparties including Trafigura and Glencore.
Joint lead managers included Morgans. Bids were due 1:30pm Tuesday, Sydney time.
The company had a $753 million market capitalisation before the raise.
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