Orvana's Bolivian subsidiary arranges bond offering

Executive Summary

• Orvana Minerals’ Bolivian subsidiary, Empresa Minera Paititi S.A. (EMIPA), received regulatory approval for a second U.S. $24.98‑million bond issuance to fund the Oxides Stockpile Project (OSP) at the Don Mario property.
• The bonds will be offered exclusively on the Bolivian Stock Exchange on a best‑efforts basis starting early September 2025, with an expected closing by 24 Feb 2026 and maturity on 19 Feb 2027.
• Proceeds are earmarked to expand processing capacity for existing oxide stockpiles, a key step toward restarting Don Mario operations in early 2026.

Key Details

• Issuer: Empresa Minera Paititi S.A. (EMIPA), subsidiary of Orvana Minerals Corp.
• Bond Terms:
• Units offered: 24,980 × $1,000 nominal value = $24.98 million total offering amount.
• Currency: U.S. dollars.
• Interest rate: 10% per annum, fixed; payable in two installments (≈360 days and ≈540 days after issuance).
• Principal maturity date: 19 Feb 2027.
• Offering period: 180 calendar days from 28 Aug 2025 (expected close ≤24 Feb 2026).
• Use of Proceeds: 100% allocated to the Oxides Stockpile Project (OSP) – expansion of processing plant to treat existing oxide stockpiles at Don Mario.
• Regulatory Milestones:
• Approval received from Bolivia’s Autoridad de Supervisión del Sistema Financiero (ASFI) on 27 Aug 2025.
• Prior approvals: registration as eligible bond issuer (Sept 2023) and first bond issuance of 327.12 million bolivianos (Nov 2023).
• Market Context:
• Bolivian dollar scarcity has widened the market exchange rate; EMIPA estimates conversion to bolivianos will fall between official and average market rates observed in Aug 2025.
• CEO Comment: Juan Gavidia highlighted the bond approval as a “significant milestone” toward securing funding needed for OSP and restarting Don Mario operations in early 2026.
• Risk Disclosure: Completion of the bond placement is not guaranteed; additional financing may be required to fully fund OSP development, subject to market, regulatory, and operational risks.

Notable Quotes

“The approval of EMIPA's second bond issuance is an important achievement in advancing the oxides stockpile project. Completion of the bond placement will be a significant milestone in securing the funding required to develop the project, which, if achieved as planned, would support our objective of restarting operations at Don Mario in early 2026.” – Juan Gavidia, CEO, Orvana Minerals Corp.