Orvana Minerals Down 12% After Borrowing $15 Million From Majority Shareholder
Orvana Minerals Corp (ORV.TO) is down nearly 12% after its majority owner committed to provide the company with a US$15 million, secured convertible bridge loan. The loan with Fabulosa Mines Ltd, which holds a 51.6% stake in Orvana, has a six month term and calls on the company to pay 8% yearly interest.
As part of the deal, the Bolivian gold and copper miner will issue 1.97 million shares of common stock to Fabulosa Mines along with warrants to purchase up to 2.725 million additional shares over the next five years. The iniital batch of new stock will increase privately held Fabulosa's stake to 52.4%.
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