ASX/JSE-listed Orion Minerals has reached agreement with the AASMF to redeem Preference Shares held by AASMF in one of Orion’s key project subsidiaries for shares in Orion.
MD and CEO, Errol Smart, comments:
“Anglo American sefa Mining Fund’s (AASMF)original seed capital investment into Orion’s Repli subsidiary in 2015 was pivotal in helping to fund the early engineering work and to drill the first holes that demonstrated the huge potential of the Prieska deposit.
“This in turn assisted us in securing substantial foreign investment that has allowed us to advance the Prieska Project to the point where we have recently published a Scoping Study and updated Mineral Resource and are poised to deliver a comprehensive BFS in Q2 2019.”
Under the agreement, Repli Trading No 27 will voluntarily redeem the Preference Shares in consideration for which Orion will issue to AASMF, the relevant number of company shares.
The value of the Shares to be issued by Orion in consideration for the redemption will be between R23.98 million – R24.99 million.
AASMF subscribed for 15.75 million redeemable preference shares in Repli 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 Zinc-Copper Project.
The transaction contemplated in the Share Exchange Agreement will be completed subject to Orion obtaining shareholder approval under ASX Listing Rule 7.1.
Orion intends to convene a meeting of its shareholders to seek shareholder approval in Q2, CY2019.E