Adriatic Metals raising $28m for Vares Silver Project study

Adriatic Metals has entered into binding agreements for a $28m financing it announced on Tuesday, to complete the definitive feasibility study on the Vareš Silver Project.

The London-listed firm said the financing would comprise a $20m private placement of 8.5% unsecured convertible debentures to Queen's Road Capital Investment (QRC), and a subscription by the European Bank for Reconstruction and Development (EBRD) for £6.2m ($8m) in ordinary shares at a price of £1.175 each.

“These investments follow an extensive due diligence exercise conducted by both parties and are a strong endorsement of the quality of the company's assets, environmental, social and governance credentials, and the contribution our projects will make to the communities in which we operate,” said chief executive officer Paul Cronin.

“This financing follows the recent publication of a robust and highly attractive pre-feasibility study on the Vareš Silver Project and leaves the company very well-funded to complete the definitive feasibility study, detailed engineering work and remaining permitting processes.

“The financing also positions the Company to aggressively explore our highly prospective Serbian assets following the acquisition of Tethyan Resource Corporation and our recently-acquired wider land holding in Bosnia.”

At 1020 GMT, shares in Adriatic Metals were up 2.69% at 114.5p.