Orion Minerals Ltd (ASX:ORN) (JSE:ORN) has completed the major component of its Black Economic Empowerment (BEE) Restructure, marking another important step forward for the Prieska Copper-Zinc Project in South Africa.
The transactions include the issue of Orion shares to key existing BEE shareholders at the asset level and a simultaneous transaction with new BEE partner company Prieska Resources (Pty) Ltd.
Mining right granted
Orion’s managing director and CEO Errol Smart said, “We are pleased to have completed the major component of our BEE restructuring.
“This comes hard on the heels of the grant of the Mining Right last week and shows that we are continuing to tick all of the key boxes required to move the Prieska Project forward as rapidly as possible.”
The effect of the transactions is to implement an ownership structure whereby Orion holds a 70% interest in Repli Trading No 27 (Pty) Ltd, which owns the majority of the Prieska project.
This is held alongside Prieska Resources with 20% and the Prieska Community Trust and Prieska Employees Trust with 5% each.
Structure is fully compliant
The structure complies fully with the objectives of South Africa’s Mining Charter 3.
Smart said, “The structure now in place means that all of our key BEE partners are now fully aligned with international investors as Orion shareholders, while also complying with the objectives of Mining Charter 3.
“Our original BEE shareholders in Repli are exchanging their shares at the asset level for Orion shares.
“At the same time, we welcome the inclusion of top-class BEE partners Safika, KNI and Black Star, who through Prieska Resources, will fund their proportionate share of Prieska development costs through their 20% shareholding at the asset level.
“These BEE partners are already Orion shareholders after participating in the $4 million share placement at $0.04 a share completed earlier this year.”
Simultaneously with the acquisition by Prieska Resources, Orion Siyathemba Community Trust (Prieska Community Trust) and Orion Siyathemba Employees Trust (Prieska Employees Trust) have each acquired an effective 5% interest in Repli.
Orion and Prieska Resources will both contribute on a pro-rata basis to the equity financing costs of the Prieska mine construction.