Orvana Minerals Corp. Announces Equity Offering
Orvana Minerals Corp. (TSX:ORV) announced today that it has filed a preliminary prospectus with the securities regulatory authorities in all provinces and territories other than the Province of Quebec in connection with a proposed offering (the "Offering") of common shares. Orvana has retained Raymond James Ltd., CIBC World Markets Inc. and Haywood Securities Inc. as co-lead underwriters and a syndicate of underwriters including Clarus Securities Inc., Stonecap Securities Inc., and Northern Securities Inc. An underwriting agreement for the Offering has not yet been entered into. The Offering will be priced in the context of the market. Orvana also anticipates that, concurrent with the completion of the Offering, it will repay in full the outstanding amount of its US$15 million bridge loan from Fabulosa Mines Limited by issuing common shares to Fabulosa at the same price and on the same terms as those issued under the Offering. In addition, Fabulosa has a right to acquire that number of common shares that, when combined with the shares issued to it in repayment of its bridge loan, is equal to the number of common shares issued under the offering but which does not entitle it to increase its ownership above its current 52.3% interest.
The net proceeds of the Offering will be used to fund, in part, capital expenditures and posting of an environmental bond with the Spanish government in connection with the development of Orvana's El Valle, Boinas/Carles Mines in Asturias Spain and for general working capital and corporate purposes.
These securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.