Orion Minerals Secures A$7.7M For Prieska Copper Zinc Mine Development

Orion Minerals Ltd (ASX:ORN) (JSE:ORN) shares have surged 13% intra-day to A$0.017 after securing firm commitments to raise ~A$7.7 million via a placement of shares.

The placement to sophisticated and professional investors is at an issue price of A$0.015 per share.

Orion will also offer a share purchase Plan (SPP) to existing shareholders to subscribe for up to A$30,000 of shares each at the same price as the placement.

The proceeds from the placement and SPP will enable Orion to progress the development of its Prieska Copper Zinc Mine in South Africa.

Updated BFS underway

Historically mined between the 1970s and 1990s, Prieska is one of the world’s Top-30 volcanogenic massive sulphide (VMS) base metal deposits.

It has a recorded historical production of over 430,000 tonnes of copper and 1Mt (million tonnes) of zinc from 46.8Mt of sulphide ore milled.

Orion’s 2020 Bankable Feasibility Study (BFS) for Prieska delivered a total payable metal production of 226kt of copper and 680kt of zinc in differentiated concentrates.

An updated BFS is currently underway for an accelerated development strategy.

Use of funds

Orion intends to primarily apply the new funds to:

  • Progress the development of Prieska Copper Zinc Mine, including the ongoing mine dewatering, access development, concentrator plant and tailing storage facility procurement and construction and general operational readiness works;
  • permitting and acceleration of infrastructure development for early production in respect of the Okiep Copper Project; and
  • advance mineral resource expansion and exploration on the company’s prospecting and mining rights.

Read: Orion Minerals Drilling Hits More High-Grade Copper In South Africa

Opportunity for retail shareholders

Orion Managing Director and CEO Errol Smart said: “With our two Bankable Feasibility Studies for Prieska Copper Zinc and Okiep Mines now imminent, and ongoing drilling recently delivering very impressive copper intersections at Okiep, this capital raise allows work to continue on preparation for commercial mining and on exploration, while the optimum debt funding arrangements are negotiated with funding institutions.

“We are particularly pleased to be able to offer an SPP, which allows our exceptionally strong retail shareholding, that now has more than 22 thousand individual holders, the opportunity to acquire Shares at the same price to that offered to larger professional institutional investors under the Placement.

 

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