#Canada #Toronto #Orvana Minerals #Don Mario #Trafigura

Orvana Minerals Boosts Bolivian Operations with $25 Million Agreement

Orvana Minerals Corp. (TSX: ORV) has made significant strides in its Bolivian operations by securing a $25 million prepayment facility in collaboration with Trafigura Pte. Ltd. This funding will be pivotal for the expansion of Orvana's Don Mario processing plant. The agreement was finalized by Orvana's Bolivian subsidiary, Empresa Minera Paitití, S.A. (EMIPA).

As of the end of October 2025, Orvana has disbursed 69% of its forecasted capital expenditure for the project. This expansion is set to enhance production capabilities, previously hampered by limitations at the Don Mario plant. The completion of the construction and commissioning is for the end of 2025, with full operational functionality expected by early 2026.

Importance of the Prepayment Facility

The prepayment facility entails a loan provided by Trafigura that bears interest at SOFR + 8% per annum and comes with favorable terms, including a 13-month repayment period. This means that the initial seven months will be interest-only, after which equal monthly installments will commence. The agreement ensures that EMIPA's ordinary shares and various assets are pledged as security, and customary covenants are set to protect the interests of Trafigura during the loan period.

In the terms of this agreement, EMIPA has committed to selling 100% of its copper cathodes and doré bars produced from the Don Mario operation’s oxide stockpile. The pricing for these products will be tied to references from the London Metal Exchange and the London Bullion Market Association, ensuring a robust and reliable trading framework for Orvana's production.

Positive Impact on Operations

Juan Gavidia, CEO of Orvana, remarked, "Securing this prepayment facility and offtake arrangement with Trafigura is a significant milestone in the restart of Don Mario. The financing allows us to complete plant construction and provides marketing certainty for our copper cathode and doré production." Gavidia's statement underscores the critical role of this agreement in reviving the Don Mario project and setting a foundation for future profitability.

Moreover, EMIPA has recently made strides in the Bolivian financial landscape by becoming a registered bond issuer, approved by the Autoridad de Supervisión del Sistema Financiero (ASFI). This status will allow EMIPA to participate more actively in Bolivia’s financial market and increase transparency as it is now required to submit quarterly financial statements to ASFI.

Looking Ahead

As for the operational details and future directions, Orvana is poised to announce its consolidated operational and financial performance from Q4 FY2025 early in December. As of now, updated production guidance and a full reflection of the impact of the financing on Orvana’s operational capabilities are expected post-pilot testing currently being conducted at the site.

Orvana Minerals is not only focused on the Don Mario operation; it also owns the producing Orovalle operation in Spain and the Taguas property in Argentina, showcasing a diversified portfolio.

For more details about Orvana and its operations, you can check their official website at Orvana's site.

Conclusion

The $25 million prepayment facility and offtake agreements with Trafigura represent a significant leap toward bolstering Orvana Minerals’ operations in Bolivia, enabling the completion of capital-intensive expansions while ensuring marketing channels for their copper production. As they move towards operational readiness in 2026, the partnership with Trafigura may prove crucial for their long-term success in the mining sector.