Adriatic Metals Secures A$80 Million via Two-Tranche Placement at A$3.90 per Share
Adriatic Metals has completed a two-tranche institutional placement raising A$80 million to fast-track its Vares Processing Plant expansion and support production growth at Rupice Mine.
- Raised approximately A$80 million via institutional placement
- Placement executed in two tranches, with first tranche commencing trading on 25 February 2025
- Funds allocated to Vares Processing Plant expansion and Rupice Mine production growth
- New shares represent 5.95% of issued capital post-placement
- Shareholder approval required for second tranche, expected in March 2025
Successful Capital Raise Strengthens Growth Prospects
Adriatic Metals PLC (ASX:ADT) announced the successful completion of a two-tranche institutional placement, raising approximately A$80 million (US$50 million) through the issuance of over 20.5 million new CHESS Depositary Interests (CDIs) at A$3.90 each. This capital injection marks a pivotal step in the company’s strategy to expand its silver mining operations in Bosnia and Herzegovina.
The placement was structured in two parts: the first tranche raised A$43.3 million under existing ASX placement capacity, with shares expected to commence trading on 25 February 2025. The second tranche, amounting to A$36.7 million, awaits shareholder approval at a general meeting anticipated in March 2025, with allotment and trading to follow shortly thereafter.
Targeted Use of Proceeds to Accelerate Production
Proceeds from the placement will be strategically deployed to secure long-lead items essential for fast-tracking the expansion of the Vares Processing Plant. Additionally, funds will support studies and operational workstreams at the Rupice Mine, aimed at underpinning production growth and providing spare capacity to mitigate risks during the ramp-up phase expected in the second half of 2025.
CEO Laura Tyler emphasized the significance of the raise, highlighting investor confidence in Adriatic Metals’ vision to increase throughput at the Vares Silver Operation to 1.3 million tonnes per annum. She expressed gratitude to both new and existing shareholders for their support, underscoring the company’s strengthened position to deliver growth and create lasting value.
Capital Structure and Market Implications
Following completion of both tranches, the new shares will represent approximately 5.95% of Adriatic Metals’ issued capital, increasing the total shares on issue to 335.6 million. The new shares will rank pari passu with existing shares, ensuring equal voting rights and dividend entitlements.
The company has also applied for admission of the new shares to trading on the London Stock Exchange and the UK Financial Conduct Authority’s Official List, maintaining its dual listing status and broadening market access for investors.
Looking Ahead
While the capital raise provides a robust financial foundation, the success of Adriatic Metals’ growth ambitions will hinge on the timely execution of the Vares Processing Plant expansion and Rupice Mine development. Market participants will be watching closely for updates on project milestones and the outcome of the shareholder vote on the second tranche.
Bottom Line?
Adriatic Metals’ A$80 million raise sets the stage for accelerated growth, but execution risks remain as production targets approach.
Questions in the middle?
- Will shareholder approval for the second tranche be secured without delay?
- How will the expanded Vares Processing Plant impact production costs and margins?
- What are the key operational risks during the ramp-up to nameplate production in H2 2025?
