ASX-listed Orion Minerals has applied for approval for a secondary listing on the main board of the Johannesburg Stock Exchange in the “mining” sector.Orion Minerals' primary listing will remain on the ASX and it will continue to be regulated by ASIC.
Non-South African Orion Minerals shareholders would be able to freely transfer their shares between the exchanges for trading and all proceeds would be able to be freely remitted to source.
[quote]The application to list on the JSE is conditional upon, inter alia, regulatory approval from the South African Reserve Bank (SARB), which remains pending.
There is no reason to believe that SARB approval will not be granted and confirmation is expected shortly.
The JSE listing is consistent with the company's strategy of engaging South African capital markets in the funding strategy of the Prieska Zinc-Copper Project.
The ability to access South Africa’s large parastatal banks and funds, which are captive within South Africa due to South African Exchange Control restrictions, is expected to significantly increase funding options for Orion Minerals.
The listing has the additional benefit of providing an accessible market in Orion Minerals shares for South African investors, thus increasing domestic ownership whilst aligning interests with foreign Investors.
"We are delighted to announce that, in the event of the application being successful, we will have an additional platform to access capital for its base metal development strategy in South Africa, and provide an opportunity to unlock further value for shareholders by potentially increasing the marketability and liquidity of our shares,” comments Orion Minerals'chairman, Denis Waddell.
Feature image credit: Orion Minerals