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Queen's Road Capital Announces Investment in Adriatic Metals Plc
Hong Kong, Hong Kong--(Newsfile Corp. - October 27, 2020) - Queen's Road Capital Investment L...
About this update from Queen's Road Capital Investment Ltd.
[{"type":"text","content":"Queen's Road Capital Announces Investment in Adriatic Metals PlcHong Kong, Hong Kong--(Newsfile Corp. - October 27, 2020) - Queen's Road Capital Investment Ltd. (TSXV: QRC) (the \"Company\", \"QRC\" or \"Queen's Road Capital\") is pleased to announce that it has entered into a binding agreement with Adriatic Metals Plc (\"Adriatic\") (ASX: ADT, LON: ADT1) whereby the Company will purchase US$20,000,000 of convertible debentures to be issued by Adriatic.The convertible debentures will have a 4-year term, carry an 8.5% coupon, a 3% establishment fee and will be convertible into Adriatic common shares at a price of A$2.7976, representing a 130% premium to the 20-day volume weighted average price. QRC's investment in the convertible debentures is being made concurrent with a £6.2 million equity private placement by Adriatic to the European Bank for Reconstruction & Development (\"EBRD\").Adriatic is a precious and base metals development company that owns the Vares silver project in Bosnia & Herzegovina. The Vares silver project consists of two high-grade polymetallic deposits located at Rupice and Veovaca. On October 15, 2020, Adriatic released the results of a Pre-Feasibility Study at Vares with some of the strongest returns in the industry. The study indicated a NPV8 of US$1.04 billion and an IRR of 113% based on spot commodity prices with an initial capital cost of US$173 million. Approximately 45% of the life-of-mine revenues of the project are expected to come from precious metals.Adriatic is advancing the Vares project into the development phase and through to production. Adriatic is expected to complete a Bankable Feasibility Study by April 2021 and Adriatic expects to have all permits in place to build the mining and processing operations by the end of November 2021.The proceeds from the convertible debenture investment and the EBRD private placement are expected to be used to fund the Bankable Feasibility Study, pay deposits on long-lead capital cost items for the construction of the mine and advance exploration activities at Adriatic's Bosnian and Serbian projects.Warren Gilman, Chairman and CEO of QRC commented: \"Adriatic's Vares project ranks among the highest return projects in the global mining industry. Its position in QRC's portfolio alongside NexGen's Arrow project and ISO Energy's Hurricane deposit i...