ADT.ASX: Placement to Fast Track Expansion at Vares

Placement to Fast Track Expansion at Vares

Stock	Adriatic Metals Plc (ADT.ASX)
Release Time	18 Feb 2025, 9:32 a.m.
Price Sensitive	Yes

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Adriatic Metals Announces A$80M Placement to Fast Track Vares Expansion

Key Points

Raising A$80M (US$50M) via institutional placement
Funds to secure long-lead items for Vares Processing Plant expansion
Expansion to increase production capacity from 0.8Mtpa to 1.3Mtpa

Full Summary

Adriatic Metals Plc (ASX:ADT, LSE:ADT1, OTCQX:ADMLF) intends to undertake a two-tranche institutional placement to raise approximately A$80.0 million (US$50.0 million) to fund the expansion of the Vares Processing Plant and provide balance sheet flexibility. The offer price of A$3.90 per new CHESS Depositary Interest (CDI) represents a discount of approximately 3.7% to the last traded price. The company plans to use A$40 million for the Vares Processing Plant expansion, including securing critical long-lead items, and A$40 million to strengthen the balance sheet and provide working capital. The expansion will increase the plant's nameplate production capacity from 0.8Mtpa to 1.3Mtpa, which is expected to enable the company to produce over 20Moz of silver equivalent per annum, positioning the Vares Silver Operation as one of the world's leading primary silver producers. Major shareholders, including Helikon Investments, L1 Capital, and Paul Cronin, intend to participate in the placement.

Guidance

The company expects to achieve full throughput rate of 0.8Mtpa at the Vares Processing Plant in the second half of 2025 and reach the expanded nameplate capacity of 1.3Mtpa by 2027.