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: