Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) said its Vares silver project in Bosnia and Herzegovina is within budget and on course for development next year despite rising costs in some areas.
The project remains on track for production in Q2 2023, and despite witnessing areas of cost inflation it has not impacted on the overall project budget nor the project development timeline," said managing director and chief executive Paul Cronin in a quarterly report.
"In any case, the company is sitting in a robust funding situation," he added.
The company had a cash balance of US$100.5mln as at end March 2022 and has completed a debt financing package with Orion Resource Partners giving it a further US$142.5mln of currently undrawn debt.
Adriatic is fully funded to the start of production at Vares.
The London-listed company reported progress on the world-class project, including the beginning of construction of an access road to the site and the signing of a contract with an underground mining contractor. It also appointed an engineering and procurement contractor and started to order long lead mechanical equipment.
Adriatic announced last week that it had signed offtake agreements with major commodity players covering 82% of production from Vares for 24 months.
READ: Adriatic Metals pulls in big hitters for Vares offtake agreements