Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Orvana Minerals Corp. (TSX:ORV) announced today that, as contemplated in the agreement entered into with Fabulosa Mines Limited (“Fabulosa”) on May 16, 2011 and previously announced by Orvana, it has entered into an agreement with Fabulosa for a six-month, secured convertible US$15,000,000 bridge loan from Fabulosa, which bears interest at a rate of 8% per annum.
“As Orvana continues to execute its strategy of growth and diversification, including the development of the EI Valle-Boinas/Carles Mine in Spain and the Copperwood Project in Michigan, ready access to financing on acceptable terms will be increasingly important. This bridge loan provides the Corporation with significant short-term flexibility,” said Roland Horst, Orvana’s Chief Executive Officer.
The bridge loan is secured against all personal property of Orvana (excluding the shares of Orvana Minerals Asturias Corp. and all proceeds therefrom). Amounts will be advanced to Orvana under the loan in one or more tranches, at Orvana’s discretion. The loan has a term of six months and the outstanding amount of the loan may be repaid by Orvana at any time without penalty. Should Orvana complete an equity financing prior to repayment of the loan, the outstanding amount of the loan may, at Orvana’s sole discretion, be converted into common shares at the price shares are sold under the equity financing, provided that the number of common shares issued on such conversion does not exceed 50% of the number of shares issued by Orvana under such equity financing. In the event that the loan is not repaid or converted into equity by Orvana prior to maturity, at maturity, the outstanding amount of the loan (including accrued and unpaid interest) may be converted, at Fabulosa’s option, into common shares based on a share price that is the volume-weighted average trading price for the five trading days preceding the maturity date less the maximum allowable discount permitted by the Toronto Stock Exchange.
About Orvana
Orvana is transforming itself into a multi-mine gold and copper producer. Orvana’s primary asset is the El Valle/Boinás-Carlés gold-copper project in northern Spain, now being commissioned. Orvana also owns the Don Mario Mine in Bolivia where a newly completed leaching-precipitation-flotation plant is processing its copper-gold-silver Upper Mineralized Zone deposit. Orvana is also advancing its major Copperwood copper project in Michigan, USA. Additional information is available at Orvana’s website (www.orvana.com).
Read the full news release here.
Comments
Angelo-smith
I Don”t Think Its ture ……..