/NOT FOR DISTRIBUTION IN THE UNITED STATES/

This news release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration. There will be no public offering of any of the securities mentioned in this news release in the United States.

TORONTO, Feb. 14, 2024 /CNW/ - Orvana Minerals Corp. (TSX: ORV) (the "Company" or "Orvana") reports consolidated financial and operational results for the quarter ended December 31, 2023 ("Q1 FY2024").

Orvana Minerals Corp. Logo (CNW Group/Orvana Minerals Corp.)

This news release contains only a summary of the Company's financial and operations results for the first quarter of fiscal 2024, and readers should refer to the full set of unaudited consolidated financial statements for the quarters ended December 31, 2023 and 2022, and accompanying management's discussion and analysis (MD&A), available on www.sedarplus.ca and on the Company's website at www.orvana.com. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.

Juan Gavidia, CEO of Orvana Minerals Corp. stated: "Gold price continues to highlight the strategic value of producing assets located in safe jurisdictions. Although Q1 FY2024 was a challenging quarter in Spain in terms of operational output, we are pleased to have defined the basis of the new labour agreement providing stability to the unit until the end of 2025. We remain focused on achieving the production guidance, while we continue working on operational efficiencies to reduce production costs".

"We continue our efforts to secure financing for the Oxides Stockpile Project in Bolivia. Subject to adequate financing, we will commence a well designed 13-month construction period to expand the plant facilities at Don Mario to treat the oxides stockpile accumulated from prior mining activities. Orvana's Team is tremendously excited on the potential of our Don Mario operation in Bolivia to contribute value to our operations and to our shareholders", he added.

Highlights

Orovalle - Spain

In January 2024, Orovalle successfully concluded negotiations regarding basic terms of its 2023-2025 Collective Bargain Agreement ("CBA"), which were ratified by workers' assemblies. The period of validity of the 2019-2022 Collective Agreement of Orovalle ended in December 2022, and has been extended until the new CBA is finalized. Upon agreement to the basic terms of the new CBA, the 3-hour stoppages per shift strike that had commenced in mid November 2023 were halted, and labour attendance and operational conditions were returned back to normal.
As a consequence of this non-recurrent event, Orovalle's first quarter performance has been negatively impacted, and the tonnage mined and milled was below the plan for the quarter. Q1 FY2024 throughput of 130,267 tonnes was 31% lower than the previous quarter.
Production of 9,550 gold equivalent ounces[1] (7,994 gold ounces, 0.7 million copper pounds and 20,393 silver ounces) was 39% lower when compared to 15,567 gold equivalent ounces1 ("GEO") in the previous quarter. The main cause of the lower metal production was the lower throughput.
Orovalle is currently re-assessing production estimates for the fiscal year, targeting to reach the lower end of the 2024 production guidance. At the same time, the Company continues working on the operational efficiencies planned for the year. Capital expenditures and unitary costs guidance will be re-assessed at the end of the second quarter, once the rescheduling of the fiscal 2024 production is completed and the implementation of operational efficiencies advances.
The Annual Information Form of the Company for the fiscal year ended September 30, 2023 (the "FY2023 AIF") was filed on December 20, 2023, including Mineral Resource and Reserves estimates for Orovalle with an effective date of September 30, 2023. The FY2023 AIF includes the latest production schedule produced by Orovalle based upon the estimated Mineral Reserves. The schedule includes oxides and skarns ore mined from both the Boinás and Carlés underground mines at an average rate of 595,000 tpa for a period of 4 years. The FY2023 AIF can be found on the Company's website at www.orvana.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.
Don Mario - Bolivia

Orvana is focused on restarting production at Don Mario. The Oxides Stockpile Project (the "OSP"), consisting of a plant expansion to treat ore stockpiled in the Don Mario Operation from previous years of mining activity, is projected to operate for 35 months, starting after a 13-month construction period that the Company expects to start in the first half of calendar 2024, subject to the completion of sufficient financing.
In November 2023, the Autoridad de Supervisión del Sistema Financiero (ASFI), the Bolivian Financial Supervisory Authority, approved EMIPA's proposed $47 million Bond Program to be offered in the Bolivian stock market (the "Bond Program"). Previously, in September 2023, EMIPA received ASFI approval of its registration as an eligible Bond Issuer in the Bolivian stock market.
The proposed OSP financing structure includes:
$47 million Bond Program, as the structure core, for CAPEX;
$33 million working capital during construction and ramp-up phases. During Q1 FY2024 the Company continued exploring different potential financing sources, including without limitation, equity at the EMIPA's level and a prepayment facility, and
$3 million Bank Debt in Bolivia, secured in fiscal 2023.
EMIPA expects to commence the bonds offering in Bolivia in the next few weeks, the closing of which would be conditional upon securing the remaining of the OSP financing structure as summarized above.
Taguas - Argentina

Orvana is analyzing a strategic option to combine oxides and sulphides in a larger undertaking strategy at Taguas. During Q1 FY2024 the Company continued working on enhancing the analytics of the sulphides zone of the deposit, and a new geological modeling is in progress. Next steps would include spectral analysis campaign to improve alteration types definition, and geo-metallurgical tests with oxide and sulphide ores. Once the oxides – sulphides combined opportunity is understood, next steps for the project will be determined.
Selected Financial Information
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