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Orion Minerals secures finance facility to progress Prieska Zinc-Copper Project BFS

Prieska project is located 270 kilometres southwest of Kimberley in the Northern Cape province of South Africa.

project area
Earlier this month, Orion revealed an upgraded resource

Orion Minerals Ltd (ASX:ORN) (JSE:ORN) is continuing to receive strong support from Tembo Capital Mining Fund II LP via a new unsecured $3.6 million bridge loan facility.

Proceeds from the loan facility will be used principally to progress the bankable feasibility study (BFS), which is on track for completion in Q2 2019 and to repay the current bridge loan of $600,000.

Under the terms of the loan facility, Tembo may at its election, have the balance of the loan facility (including capitalised interest and fees) repaid by the issue of ordinary shares in Orion to Tembo at a deemed issue price of 2.6 cents per share (subject to shareholder approval).

Extension of maturity date of convertible notes

Orion’s convertible noteholders have approved the extension of the maturity date of their convertible notes (worth about $6.05 million) from March 17, 2019 to September 30, 2019.

READ: Orion Minerals confirms Ayoba massive sulphide discovery with first assays

Orion chairman Denis Waddell said: “We are very pleased with Tembo’s ongoing support as well as the support of the holders of the convertible notes, as it enables the continued rapid advance of the Prieska Zinc-Copper Project through to the completion of bankable feasibility studies.

“Our focus is on bringing Prieska into production as quickly as possible, based on the parameters outlined in the positive Scoping Study released in December 2018.

“The BFS is well advanced and on track to be completed in Q2 2019.”

READ: Orion Minerals upgrades Prieska zinc-copper resource to over 30 million tonnes

Earlier this month, Orion revealed an upgraded resource of 30.49 million tonnes grading 3.7% zinc and 1.2% copper for its Prieska Zinc-Copper Project.

Orion managing director and chief executive officer Errol Smart recently said: “The completion of the first ‘global’ mineral resource for Prieska, encompassing all 2018 drilling data, is a great way to start 2019.

“The total mineral resource for the project now stands at over 30 million tonnes, cementing its position as one of the more significant new VMS development projects globally and highlighting its potential to underpin a substantial, long-life mining operation.”

Quick facts: Orion Minerals Ltd

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Market: ASX
Market Cap: $49.29 m

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Full interview: Orion Minerals granted mining right for flagship South...

Orion Minerals Limited (ASX:ORN) managing director and CEO Errol Smart updates Proactive Investors on the company being granted the key mining right by the South African Department of Minerals Resources and Energy for the Prieska Copper-Zinc Project in South Africa. This marks a major...

on 3/9/19

2 min read