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Orion Minerals raises $5.5 million to advance Prieska Project development opportunity

Published: 15:41 24 Oct 2019 AEDT

Orion Minerals raises $5.5 million to advance Prieska Project development opportunity
In addition to the placement, a share purchase plan is being offered to eligible shareholders

Orion Minerals Ltd (ASX:ORN) (JSE:ORN) has received commitments from sophisticated and professional investors to raise about $5.5 million by way of a placement of shares at 2.5 cents per share.

As part of the placement, Tembo Capital Mining Fund II LP and its affiliated entities have confirmed their continued support of Orion through subscribing for $2.5 million in the placement.

Orion intends to utilise proceeds raised from the placement for bankable feasibility study (BFS) optimisation studies and early works at its flagship giant VMS Prieska Copper-Zinc Project in South Africa.

The remaining funds will be earmarked for exploration on the company’s tenements in the Northern Cape of South Africa and for working capital.

Early indications of potential reduction in project capital

Orion chairman Denis Waddell said: “We are delighted with the support for the capital raising from both existing and new investors, including Tembo Capital.

“Importantly, the funds raised will be used to take us to the next significant milestones, being completion of optimisation studies on the already positive Prieska Copper-Zinc Project BFS study, commencement of Prieska Project early works, and progressing the financing negotiations and contracts preparation for the Prieska Project.

“Optimisation study work is producing very positive early indications for potential reduction in project capital and the possibility of bringing production forward.

“An update on ongoing work will be provided in the near term.

Multiple opportunities

“We also look forward to imminent assay results from the promising exploration results announced by our joint venture partner Independence Group NL (ASX: IGO), on our free carried joint venture interest in the Fraser Range Australia, with drilling having intersected nickel copper sulphides at North West Passage.

“Independence has also advised that drilling is now underway at the highly prospective Pike Trend Prospect in which Orion has a 30% free carried interest.

“We have also been encouraged by interest from smaller existing shareholders who could not participate in the Placement.

“We have therefore decided to offer a share purchase plan to provide all shareholders the opportunity to participate in a Share Purchase Plan at the same Share issue price as the Placement.”

Share purchase plan

In addition to the placement, Orion has launched a share purchase plan (SPP) providing shareholders an opportunity to increase their shareholding in the company as it continues to advance its Prieska Project development opportunity.

Orion is offering its shareholders as on October 23 2019 the opportunity to purchase shares under the SPP at 2.5 cents per share.

Orion Minerals awards trial mining contract for Prieska

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on 5/9/23