HomeBase MetalsOrion Minerals raises $5.5 million for studies at Prieska Project

Orion Minerals raises $5.5 million for studies at Prieska Project

ASX/JSE-listed Orion Minerals has received commitments from investors to raise approximately $5.5 million by way of placement of approximately 222 million fully paid ordinary shares.

As part of the Placement, Tembo Capital Mining Fund II LP and its affiliated entities, has confirmed its continued support of Orion Minerals through subscribing for $2.5 million in the Placement.

Orion Minerals intends to utilise proceeds raised from the Placement for bankable feasibility study (BFS) optimisation studies and early works at its flagship giant VMS Orion Minerals: BEE restructure complete, with the remainder earmarked for exploration on the company’s tenements in the Northern Cape of South Africa and working capital.

The Placement has been made to sophisticated investors, pursuant to Section 708A of the Corporations Act 2001.

The issue of these Shares falls within the 15% capacity for issues of equity securities without shareholder approval afforded by ASX Listing Rule 7.1. Petra Capital acted as sole bookrunner and sole lead manager to the Placement.

The Placement is expected to be completed on or around 31 October 2019. Chairman of Orion Minerals, Denis Waddell, commented:

“We are delighted with the support for the capital raising from both existing and new investors, including Tembo Capital.

“Importantly, the funds raised will be used to take us to the next significant milestones, being completion of optimisation studies on the already positive Prieska Copper-Zinc Project BFS study, commencement of Prieska Project early works, and progressing the financing negotiations and contracts preparation for the Prieska Project.

“Optimisation study work is producing very positive early indications for potential reduction in project capital and the possibility of bringing production forward.

“We have also been encouraged by interest from smaller existing shareholders who could not participate in the Placement.

“We have therefore decided to offer a Share Purchase Plan to provide all shareholders the opportunity to participate in a Share Purchase Plan at the same Share issue price as the Placement.”