Orvana Minerals closed a €6 million (approximately $6.84 million) credit facility through its wholly-owned subsidiary, OroValle Minerals. The facility was provided by BBVA, BANKIA and SABADELL.
The facility will provide funds at an attractive interest rate of 2.55%, and is better aligned with OroValle’s successful operational turnaround schedule of four years. It 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 were secured by the pledge of OroValle’s shares in the El Valle Mine in Spain, the pledge of OroValle’s doré sale proceeds and a 12.5% restricted cash requirement.
Juan Gavidia, Orvana CEO, commented, “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.”
Concurrent with the closing of the facility, Orvana repaid the Samsung C&T prepayment facility, originally established in August 2016. The company will continue its 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.
Orvana is a multi-mine gold-copper-silver company with operating assets in the producing El Valle and Carlés gold-copper-silver mines in northern Spain and the producing Don Mario gold-silver operations in Bolivia.
