Orvana Announces the Closing of a €15 Million Syndicated Loan IN Spain
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For Immediate Release TSX:ORV
Date: December 23, 2021 #20-2021
ORVANA ANNOUNCES THE CLOSING OF A €15 MILLION SYNDICATED LOAN IN SPAIN
TORONTO, ONTARIO, December 23rd, 2021 – Orvana Minerals Corp. (TSX:ORV) (“Orvana”) is pleased to
confirm its November 30th 2021 press release, by announcing the closing of a €15 million syndicated loan (the
“Syndicated Loan”) with two Spain -based banks, through its wholly -owned subsidiaries in Spain, Orvana
Minerals Iberia S.L.U. (“Iberia”) and Orovalle Minerals S.L. (“Orovalle”). Orvana will use the proceeds to fund
the development of the Taguas Project in Argentina and structural capital expenditures in Spain.
Orvana’s Chief Executive Officer, Juan Gavidi, said: “The closing of the financing places us in a very strong
position to materially advance the Taguas Project in Argentina and reinforce the growth strategy in Spain”. He
added “We continue building on our relationship with long term financial partners, allowing us to access to
financing at a very attractive interest rate”.
Key terms of the Syndicated Loan:
• Principal: €15M;
• Interest Rate: Euribor plus 2.5% per annum;
• Structuring Fee: 1.5%
• Term: 4-year;
• Orvana’s obligations are secured by the pledge of Orovalle and Iberia’s shares;
• Among other obligations, the ratio net finance debt to EBITDA calculated based on the aggregated
financial information of Orovalle and Iberia, must be, throughout the life of the financing, less than 3.5.
ABOUT ORVANA - Orvana is a multi -mine gold -copper-silver company. Orvana’s assets consist of the
producing El Valle and Carlés gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in
Bolivia, currently in care and maintenance, and the Taguas property located in Argentina. Additional information
is available at Orvana’s website (www.orvana.com).
For further information please contact:
Nuria Menéndez
Chief Financial Officer
Cautionary Statements - Forward-Looking Information
Certain statements in this news release constitute forward- looking statements or forward- looking information within the meaning of
applicable securities laws (“forward- looking statements”). Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, pl ans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using
words or phrases such as “believes”, “expects”, “plans”, “estimates” or “intends” or stating that certain actions, events or results “may”,
“could”, “would”, “might”, “will” or “are projected to” be taken or achieved) are not statements of historical fact, but are forward -looking
statements.
The forward-looking statements herein relate to, among other things, Orvana’s ability to achieve improvem ent in free cash flow; the ability
to maintain expected mining rates and expected throughput rates at El Valle Plant; the potential to extend the mine life of El Valle and Don
Mario beyond their current life- of-mine estimates including specifically, but not limited to, in the case of Don Mario, the processing of the
mineral stockpiles and the reprocessing of the tailings material; Orvana’s ability to optimize its assets to deliver sharehol der value; the
Company’s ability to optimize productivity at Don Mari o and El Valle; estimates of future production, operating costs and capital
expenditures; mineral resource and reserve estimates; statements and information regarding future feasibility studies and their results;
future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; the potential for discovery of
additional mineral resources; future financial performance, including the ability to increase cash flow and profits; future financing
requirements; and mine development plans.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the
Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and
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contingencies, which includes, without limitation, as particularly set out in the notes accompanying the Company’s most recently filed
financial statements. The estimates and assumptions of the Company contained or incorporated by reference in this information, which
may prove to be incorrect, include, but are not limited to the various assumptions set forth herein and in Orvana’s most recently filed
Management’s Discussion & Analysis of the Company’s most recently completed fiscal year , and the latest filed Annual Information Form
(the “Company Disclosures”) or as otherwise expressly incorporated herein by reference as well as: there being no significant disruptions
affecting operations, whether due to labour disruptions, s upply disruptions, power disruptions, damage to equipment or otherwise;
permitting, development, operations, expansion and acquisitions at El Valle and Don Mario being consistent with the Company’s current
expectations; political developments in any jurisdiction in which the Company operates being consistent with its current expectations;
certain price assumptions for gold, copper and silver; prices for key supplies being approximately consistent with current levels; production
and cost of sales forecasts meeting expectations; the accuracy of the Company’s current mineral reserve and mineral resource estimates;
labour and materials costs increasing on a basis consistent with Orvana’s current expectations; the availability of necessary funds to
execute the Co mpany’s plan; there will be no material change to the results of the preliminary economic assessment, including but not
limited to the mineral resource estimation, conceptual mine plan and operations, internal rate of return, sensitivities, taxes, net pres ent
value, potential recoveries, design parameters, operating costs, capital costs, production data and economic potential; the timing and costs
for production decisions; permitting timelines and requirements are achieved in a timely manner ; exploration and planned exploration
programs are sufficiently funded and executed in a timely manner; timing for completion of a feasibility study; timing for first gold production;
processing the stockpile at El Valle in connection with the metal production catch- up program; identifying additional resources beyond the
replenishment of annual depletion rates at El Valle for the extension of mine life; issuing an expanded resource PEA for Taguas in a timely
manner; completion of the infill drilling program at Taguas; making a decision on the oxides stockpile at Don Mario in a timely manner; and
the Company's general objectives and strategies.
A variety of inherent risks, uncertainties and factors, many of which are beyond the Company’s control, affect the operations, performance
and results of the Company and its business, and could cause actual events or results to differ materially from estimated or anticipated
events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include: the potential
impact of the COVID- 19 on the Company’s business and operations, including: our ability to continue operations; our ability to manage
challenges presented by COVID-19; the accounting treatment of COVID-19 related matters; Orvana’s ability to prevent and/or mitigate the
impact of COVID-19 and other infectious di seases at or near our mines; our ability to support the sustainability of our business including
through the development of crisis management plans, increasing stock levels for key supplies, monitoring of guidance from the medical
community, and engagement with local communities and authorities; fluctuations in the price of gold, silver and copper; the need to
recalculate estimates of resources based on actual production experience; the failure to achieve production estimates; variations in the
grade of ore mined; variations in the cost of operations; the availability of qualified personnel; the Company’s ability to obtain and maintain
all necessary regulatory approvals and licenses; the Company’s ability to use cyanide in its mining operations; risks generally associated
with mineral exploration and development, including the Company’s ability to continue to operate the El Valle and/or ability to resume long-
term operations at the Carlés Mine; the Company’s ability to successfully implement a sulphidization circuit and ancillary facilities to process
the current oxides stockpiles at Don Mario; the Company’s ability to successfully carry out development plans at Taguas; sufficient funding
to carry out development plans at Taguas and to process the oxides stockpiles at Don Mario; the Company’s ability to acquire and develop
mineral properties and to successfully integrate such acquisitions; the Company’s ability to execute on its strategy; the Com pany’s ability
to obtain financing when required on terms that are acceptable to the Company; challenges to the Company’s interests in its property and
mineral rights; current, pending and proposed legislative or regulatory developments or changes in political, social or economic conditions
in the countries in which the Company operates; general economic conditions worldwide; current and future environmental matters; and
the risks identified in the Company’s disclosures. This list is not exhaustive of the factors that may affect any of the Company’s forward-
looking statements and reference should also be made to the Company’s Disclosures for a description of additional risk factors.
Any forward-looking statements made herein with respect to the anticipated development and exploration of the Company’s mineral projects
are intended to provide an overview of management’s expectations with respect to certain future activities of the Company and may not be
appropriate for other purposes. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and
opinions and, except as required by law, the Company does not undertake any obligation to update forward -looking statements should
assumptions related to these plans, estimates, projections, beliefs and opinions change. Readers are cautioned not to put undue reliance
on forward- looking statements. The forward -looking statements made in this information are intended to provide an overview of
management’s expectations with respect to certain future operating activities of the Company and may not be appropriate for other
purposes.