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Orvana Minerals Corp T.ORV

Alternate Symbol(s):  ORVMF

Orvana Minerals Corp. is a multi-mine gold-copper-silver company. It is involved in the evaluation, development and mining of precious and base metal deposits. Its assets consist of the producing El Valle and Carles gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, and the Taguas property located in Argentina. The El Valle and Carles mines and the El Valle processing plant are a producer of copper concentrate and dore. El Valle is located in Asturias, Northern Spain. The Don Mario Operation is in San Jose de Chiquitos, Southeastern Bolivia. The Don Mario Operation consists of a set of assets that includes Las Tojas orebody, and the previously mined out lower mineralized zone, upper mineralized zone and Cerro Felix mines. The Taguas Property consists of 15 mining concessions over an area of 3,273.87 hectares, held and managed by its subsidiary Orvana Argentina S.A. Taguas is located in the province of San Juan, on the eastern flank of the Andes.


TSX:ORV - Post by User

Bullboard Posts
Post by newbie880on Dec 06, 2013 11:00pm
212 Views
Post# 21981623

Spin doctors...

Spin doctors...Reading through the M&A... and this company has still not turned the corner. Over 60 million in debt still remains. The only good that's happened is the suspension of the LPF in Bolivia and that cost 6 million to do and almost two years to figure out. Unbelievable what these bone heads signed with CS. This little puppy had a bounce today in its share price, but will give it up and more next week. BOW WOW BOW WOW The EVBC Loan contains covenants that, among other things, (i) require the deposit of certain cash flows from operating activities into restricted cash for upcoming EVBC Loan repayments, (ii) restrict Orvana’s ability to incur additional indebtedness, (iii) restrict Kinbauri’s ability to make cash distributions to Orvana in certain circumstances subject to meeting certain covenants, (iv) require additional repayments under the EVBC Loan in certain circumstances from excess cash flows from operating activities, and (v) restrict Orvana’s ability to sell material assets or to carry on business other than one related to the mining business. The EVBC Loan requires the deposit of certain cash generated from operating activities into restricted cash to be used for future EVBC Loan repayments and restricts the distribution of cash in certain circumstances from Kinbauri to Orvana unless certain covenants are met. Therefore, Orvana may report positive cash balances, but may be restricted in its ability to make use of certain of this cash. The Company experienced certain operational and financing issues at EVBC during the first three months of fiscal 2013 that required additional working capital financing. Consequently, EVBC received financial support from Orvana in order to meet certain working capital obligations resulting from lower production and timing delays between the production and sale of concentrates. Orvana financed these obligations from revenues generated by the UMZ Mine and by drawing on the Fabulosa Loan. EVBC was selffinancing starting in the second quarter of fiscal 2013 and this is expected to continue. Orvana is making principal and interest payments under the EVBC Loan, interest and stand-by fees payments under the Fabulosa Loan and repaid $3,359 of principal under the Fabulosa Loan to the date of this MD&A. At the date of the MD&A, $2,731 was outstanding under the Fabulosa Loan and the Company had the ability to draw approximately $8,769 thereunder until September 30, 2014. The Company expects to be in non-compliance with certain financial covenants with respect to the EVBC Loan in the next quarter and expects to obtain a waiver in connection therewith. If a waiver cannot be obtained, the EVBC Loan would have to be reclassified to short-term and could be called by the lender.
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