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- 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.
