Orion Minerals has secured firm commitments for a placement of new fully paid ordinary shares to “sophisticated and professional” investors to raise about A$7.7 million ($5.1 million).
At least 513 million shares will be issued under the placement, at an issue price of 1.5 Australian cents per share.
Orion also intends to offer a share purchase plan (SPP) to existing eligible shareholders, providing existing eligible shareholders with an opportunity to purchase up to A$30,000 ($ 20,027) of shares at the same offer price as the shares issued under the placement.
It said funds would be used principally to progress the development of the Prieska Copper Zinc Mine and permitting and acceleration of infrastructure development for early production in respect of the Okiep Copper Project and ongoing exploration drilling at Okiep in South Africa.
“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 to work to continue on preparation for commercial mining and exploration, while the optimum debt funding arrangements are negotiated with funding institutions,” said Orion chief executive Errol Smart.
“We are particularly pleased to be able to offer an SPP, which allows our exceptionally strong retail shareholding, which now has more than 22 000 individual holders, the opportunity to acquire Shares at the same price as that offered to larger professional institutional investors under the placement.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
