RE:Upcoming Catalysts 2024 Bolivia Bonds Program
So looks like they put this news out Dec 1st which was during the Collectiving bargaining 3 hour work stoppage pressure. Last press release said they have a 2 year agreement THROUGH 2025 and 2024 guidance may be adjusted to accomodate the effected Q124. With that in mind, it appears the following is still in play.
- EMIPA (the Company's subsidiary in Bolivia) is focused on restarting production in fiscal 2025, by expanding the Don Mario Plant to treat the oxides stockpile accumulated in the operation.
- In September 2023, the Autoridad de Supervisin del Sistema Financiero (ASFI), the Bolivian Financial Supervisory Authority, approved and registered EMIPA as an eligible Bond Issuer in the Bolivian stock market.
- In November 2023, ASFI) approved EMIPA's proposed $47 million Bond Program to be listed on the Bolivian stock market (the "Bond Program").
- The financing of the Don Mario Plant expansion project is expected to be comprised of:
- $47 million Bonds Program, as the core financing component, for CAPEX.
- $3 million Bank Debt: during the fourth quarter of fiscal 2023 EMIPA secured a financing line with Banco FIE in Bolivia and $1.5 million of that line were withdrawn during the quarter.
- $33 million working capital during construction and ramp-up phases. The Company is currently exploring different potential financing sources, including without limitation, equity at the EMIPA's level and a prepayment facility. *** Still waiting for this!
- EMIPA expects to commence the bonds offering in the next few weeks, the closing of which would be conditional upon securing the remaining of OSP financing structure as summarized above. The big question is where are they at with the above $33M? Certainly they are making progress with the OSP but possibly slowed by the work stoppages. Thankfully, they have a good history in the past for getting good non dillutive financing put together which is a main reason I have some shares here. Takes a little longer to get these deals through but the share count stays the same. What do they mean by possible Equity at the EMIPA level?
- Bonds Program highlights:
Total Offering Amount: Bs 327.120.000,00 ($47 million)
Units: 32.712
Face value: Bs. 10.000,00 / unit
Term: 1,080 days (since issuance date)
Interest rate: 6.8%
Security: Don Mario Plant – New circuits
Covenants: financial ratios (debt coverage, debt coverage third parties and leverage).