On 18 August 2017, Orion announced that a $6 million bridge loan facility had been agreed with Tembo Capital Mining Fund II LP (Bridge Loan Agreement).
In addition to the bridge loan, Tembo’s affiliate, Ndovu Capital X BV subscribed for 73 million ordinary Orion shares through the placement of shares to raise $1.75 million at an issue price of 2.4 cents per share.
Under the terms of the bridge loan agreement, Orion agreed that it will use best endeavours to undertake a capital raising by 15 December 2017 (now extended to 31 May 2018), to raise additional equity to progress the Prieska zinc-copper project to a bankable feasibility study (BFS) and to continue its South African exploration programmes.
Following the announcement of the bridge loan, on 30 October 2017, Orion advised that it is undertaking a $5.5 million capital raising. The placement to sophisticated and professional investors will be for up to 229.167 m Shares at an issue price of 2.4 cents per Share.
The capital raising will occur in two stages:
- Tranche 1 - 144.583 m shares using the company’s 15% placement capacity under ASX-listing Rule 7.1 to raise $3.47 million. Tranche 1 shares were issued on 3 November 2017; and
- Tranche 2 - up to 84.583 m shares to raise $2.03 million (subject to shareholder approval, at a general meeting of shareholder to be held 13 December 2017. In addition, approval will also be sought at the meeting for Orion’s chairman Denis Waddell to subscribe for up to 10.4 million shares at 2.4 cents, to raise $0.25 million