RE:New Press Release - ARIS MINING ANNOUNCES PRICING OF US$450 MILLION SENIOR NOTES OFFERING TO FUND REDEMPTION OF OUTSTANDING 6.875% SENIOR NOTESThey up-sized the offering to $450 million from the intended $400 million. I just looked and the Prime interest rate today is 8.00%. Prime Rate is what banks give most favored customers. Hence, there was no penalty for risk in the rate Aris just achieved.
Long term debt is $340 million of which $302 million is the 2026 Senior Notes they are redeeming. This means Aris just got a nice cash infusion of $148 million, which easily covers the Marmato mine development (with the remaining Wheaton stream). This my friends, means with their two development projects of the Segovia processing upgrade and Marmato underground mine, we shareholders will see no additional dilution.
I should also point out that 58.1 million A series warrants (C$5.50 + 2 A Warrants = 1 share) will generate another cash infusion of US $116 million (I used C$1.38/ $1 USD) by August 1, 2025. I'm hoping to exercise a portion of my extensive A series warrant holdings into shares next year.
Just before Christmas this year, another C$10 million will come in from C$6.00 strike warrants adding 1.65 million additional shares to the outstanding count.
As you can probably tell, I am really pleased with this announcement. The cash tank is full, and two sizeable projects are about to add an incredible amount of revenue going forward.
I'm curious to see how the market reacts to this over the next several days. Today, mining shares got hammered after Newmont dropped another earnings turd. Good thing Gold was firm or else the carnage in the sector would have been much worse today.