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Orion Minerals investors Tembo Capital and Ndovu Capital up stake to 23%

Published: 16:03 27 Aug 2018 AEST

The historic Prieska mine in South Africa
Orion Minerals hopes to release a bankable feasibility study for the shuttered Prieska mine by early next year

Orion Minerals Ltd’s (ASX:ORN) major investors Tembo Capital Mining Fund II LP and Ndovu Capital X B.V. (Ndovu) have increased their majority stake in the South African asset holder by 5.58% to 22.99%.

The investor capital duo increased its number of shares by 172,918,918 shares or 70.92% to 430,918,918 shares, reflecting its participation in a June capital raising by Orion.

READ: Orion Minerals progresses South African assets with $19 million in the bank​

The upped stake reflected Tembo’s choice to turn $6.3 million of loans into shares, leaving a debt of only about $600,000 for Orion to repay.

Orion pulled in $17.9 million with the capital raising in June priced at 3.7 cents a share.

Orion managing director and CEO, geologist Errol Smart, acknowledged the value of the funding this month, telling Proactive Investors: “We are in a strong position to fast-track our bankable feasibility study.”

The capital raising will help fund a definitive feasibility study for the 29.4 million tonne Prieska Zinc-Copper Project in South Africa, which is expected to be released by the beginning of next year.

READ: Africa Down Under Conference Perth to highlight mining and energy investments​

Orion’s leader Smart is expected to deliver a company presentation during day one of the upcoming Africa Down Under Conference Perth tomorrow.

Smart told Proactive Investors last week: “Orion has secured investors that share this vision and we are working on developing a new, modern, base metal mining district in the Northern Cape.

“We see it as a huge advantage being able to start with a clean sheet of paper in a remote district, holding exceptional mineral endowment and with all the services and logistics in place.

“We can build mines with a vision of efficiency and best practice and not have to be dragged down by the legacy issues that most of the established mining districts in South Africa face.”

Orion Minerals awards trial mining contract for Prieska

Orion Minerals Ltd (ASX:ORN, JSE:ORN) CEO Errol Smart tells Proactive the company has awarded a trial mining contract for the Prieska Copper-Zinc Mine to Newrak Mining Group - an experienced South African contract mining company with 28 years of operating history. He adds that previous Prieska...

on 5/9/23