HomeBase MetalsAnglo American SME fund secures 3.7% stake in Orion Minerals

Anglo American SME fund secures 3.7% stake in Orion Minerals

Dual-listed Orion Minerals has completed issuing shares to South African institutional investor, the Anglo American sefa Mining Fund, or AASMF – which now owns a 3.7% stake in Orion.

Launched in 2003, the AASMF is a joint initiative between Anglo American Zimele and Small Enterprise Finance Agency (sefa) formerly known as Khula Enterprise Finance, a government-owned entity that promotes small and medium enterprise development.

As a value-adding relationship investor, the AASMF helps such mining enterprises that applied before March 2017 with equity and loan finance at prime interest rates p.a., complemented by technical support during the high-risk exploration and pre-feasibility stages of projects – which can get extremely complicated.

Essentially, this Fund brings its beneficiaries’ businesses to commercially bankable positions at which point such beneficiaries can approach lenders and raise finance to get their mining operations commissioned.

AASMF subscribed for 15.75 million redeemable preference shares in Repli Trading No 27, a 73.33% owned subsidiary of Orion Minerals, in November 2015 at a subscription price of R1 per redeemable preference share as part of a seed capital investment with the previous owners of the Prieska copper-zinc project.

Orion is looking to re-start mining at  Prieska, situated in the northern Cape.

AASMF agreed to the redemption of the preference shares, in exchange for ordinary shares in Orion, the parent company of Repli.

Under the terms of the share exchange agreement and following the receipt of Orion shareholder approval at a meeting held on 7 June 2019, Repli has voluntarily redeemed the preference shares in consideration for Orion issuing the shares to AASMF.

No funds were raised from the issue of the shares.