Total
0
Shares
Orion Minerals (ASX:ORN) - Chairman, Denis Waddell
Chairman, Denis Waddell
Source: The Assay
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Orion Minerals (ORN) will undertake a $25 million placement to accelerate the development of two base metal production centres in South Africa
  • To raise the $25 million, approximately 694.4 million shares will be issued to sophisticated and professional investors at 3.6 cents
  • The placement will be undertaken in two phases, with phase one issuing 490 million shares to raise $17.6 million
  • Phase two, which is subject to shareholder approval, will issue 204 million shares to raise $7.4 million
  • As stated before, Orion will use the funds to advance its Prieska Project and the Okiep Copper Complex (OCC)
  • Additionally, the company will use the money to fund the potential acquisition of the OCC and progress it towards near-term production
  • Orion has ended the day 12.2 per cent in the red with shares trading at 3.6 cents

Orion Minerals (ORN) will undertake a $25 million placement to accelerate the development of two base metal production centres in South Africa.

The company entered a trading halt on February 23 but did not disclose how much it intended to raise or what it would use the funds for.

To raise the $25 million, approximately 694.4 million shares will be issued to sophisticated and professional investors at 3.6 cents.

The placement will be undertaken in two phases, with phase one issuing 490 million shares to raise $17.6 million.

Shares are expected to be issued on or around March 5.

Phase two, which is subject to shareholder approval, will issue 204 million shares to raise $7.4 million. This includes a $2 million investment from Non-Executive Director Tom Borman which is also subject to shareholder approval.

Orion will seek shareholder approval at a general meeting scheduled for April.

As stated before, Orion will use the funds to advance its Prieska Project and the Okiep Copper Complex (OCC).

Additionally, the company will use the money to fund the potential acquisition of the OCC and progress it towards near-term production.

The OCC lies 450 kilometres east of Orion’s flagship Prieska Copper-Zinc Project which is one of the world’s top-30 volcanogenic massive sulphide base metal deposits.

“This is a transformational capital raising for Orion which marks the culmination of many years of hard work, firstly to bring the Prieska Project to the point where it is now one of the very few fully-permitted and development-reader base metals projects anywhere in the world,” Managing Director Errol Smart commented.

“Our meow recent OCC transaction is also a game-changer for the company, bringing an outstanding asset in a premier copper mining district into our portfolio which we believe can be brought into production relatively quickly,” he said.

“The funds raised will allow us to advance both projects rapidly towards development, while also undertaking a multi-pronged exploration effort which we believe could deliver some very exciting results over the next few months,” he added.

Orion has ended the day 12.2 per cent in the red with shares trading at 3.6 cents in a $139.9 million market cap.

ORN by the numbers
More From The Market Herald
Vimy Resources (ASX:VMY) - Interim CEO, Steven Michael

" Vimy Resources (ASX:VMY) advances controversial Mulga Rock Uranium Project

Vimy Resources (VMY) has submitted a notification of ‘substantial commencement’ for the Mulga Rock Uranium Project in Western Australia.
Bardoc Gold (ASX:BDC) - CEO, Robert Ryan

" Bardoc Gold (ASX:BDC) confirms extensions of Zoroastrian deposit

Bardoc Gold (BDC) has announced most recent assay results from the Zoroastrian deposit within its namesake project “exceeded expectations”.
Albion Resources (ASX:ALB) - Executive Chairman, Colin Locke

" Albion Resources (ASX:ALB) intersects shallow lead-zinc mineralisation at Pillara East

Albion Resources (ALB) has intersected shallow zinc-lead mineralisation at the Pillara East target in Western Australia.
Breaker Resources (ASX:BRB) -

" Breaker Resources (ASX:BRB) sees further potential at Manna

Breaker Resources (BRB) has seen further potential for the Manna lithium prospect as a significant lithium discovery.