Orion Minerals Ltd (ASX:ORN) has received consent from South African authorities to increase its controlling interest in an exploration tenement package to the north of the Prieska Zinc-Copper Project.
Previously, Orion had a 49% stake in a private South African company Masiqhame, which holds the rights to the tenement package.
Ministerial consent has been received for Masiqhame to transfer a controlling interest in the company to Orion, meaning Orion becomes a 50% holder.
Furthermore, Orion can earn up to a 73% interest in Masiqhame by completing a feasibility study on any mineral project within the tenement package.
Building a pipeline of exploration assets
The increase in ownership and control of Masiqhame further strengthens Orion’s pipeline of base metal exploration assets in the Areachap Belt, surrounding its flagship Prieska Project.
Orion’s managing director and CEO Errol Smart said: “Obtaining Ministerial consent for the transfer of a controlling interest in the Prospecting Right Holder, Masiqhame, to Orion, is a key step which gives us management control and the opportunity to increase our ownership in this highly prospective northern exploration package to 73%.
Targeting VMS deposits
“Orion’s strategy is to develop a pipeline of VMS exploration opportunities across the highly prospective Areachap belt to complement our flagship Prieska Copper-Zinc Project, where we intend to establish a new processing facility and infrastructure.
“VMS deposits generally occur in clusters and we believe the exploration upside in the broader belt is significant.
“In 2018, we identified a number of high-priority VMS targets on the Masiqhame Prospecting Right and we are looking forward to progressing exploration of these promising targets as part of our broader growth strategy in the Areachap Province.”