RCKS Talks

Adventus Adds Another Strategic Investor

Impact: Positive

Adventus Zinc has announced a financing which brings a fourth strategic investor into the company. The company is raising $9.2 million at a price of $0.90/sh. Additionally, an affiliate of Wheaton will pay Adventus $800,000 in cash for the right of first refusal on any new precious metals royalties or streams from the Curipamba and Alliance projects and right of first offer on any future properties in Ecuador acquired by Adventus

Wheaton Precious Metals Corp. was the lead order on the deal and is expected to hold approximately 9.9% of the common shares of Adventus upon closing.

We view the companies continued support from multiple strategic investors as both an endorsement of the Curipamba project and management.

The net proceeds of the offering will be used to fund exploration and development activities at Curipamba and within the Ecuador Exploration Alliance, which includes the Pijilí and Santiago Projects.

Adventus is trading at a slight discount to peers, which we expect to close given the exploration potential and quality of the company’s exploration assets but probably does not fully account for the planned monetization of its earlier stage projects in Ireland and Newfoundland. Upcoming catalysts includes results from ongoing exploration activities along with the planned monetization of non-core earlier stage exploration assets.

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