Orion Minerals has raised $11 million through the placement of shares. Tranche 1 will comprise 91.6 million shares to raise $3.4 million and Tranche 2 comprises 205.7 million shares to raise $7.6 million.
Proceeds from the Placement will be used principally to finalise the bankable feasibility study on Orion Minerals’ flagship Prieska zinc-copper project, which is scheduled to be completed late 2018 or early 2019.
Funds will also be used to continue exploration programmes on Orion Minerals highly prospective tenements located in the Northern Cape, South Africa and for working capital.
In addition to the placement, Tembo Capital Mining Fund II LP and its affiliated entities, has confirmed its continued support of Orion Minerals through subscribing for $6.3 million in shares, at an issue price of $0.037 per share, being the issue price for shares issued under the placement.
Orion Minerals announce on 18 August 2017, that it had entered into a loan facility agreement with Tembo Capital, pursuant to which Tembo Capital has advanced $6 million in funds to Orion Minerals.
Orion Minerals has agreed with Tembo, that Tembo Capital’s Share subscription will be issued in consideration for reducing the amount re-payable to Tembo Capital under the loan facility at a deemed issue price of $0.037 per share, being the same issue price as the shares being offered under the placements.
The balance of the loan facility will be reduced by $6.3 million.
The balance of the loan facility following this repayment will be approximately $0.6 million.
In addition, the company will also seek shareholder approval at the General Meeting pursuant to ASX Listing Rule 10.11 to enable the chairman, Denis Waddell, to subscribe for 6.8 million Shares at the same issue price as the Shares being offered under the Placements to raise $0.25 million.
“We are delighted with the support received from new and existing shareholders and welcome a number of new institutional investors to the register,” comments Waddell.
“The quality of support for the placement signals the change in investment grade of the company as it moves closer to its production goals.
“The placement, in addition to the recent sale of the company’s Queensland tenements to Evolution Mining for $2.5 million, a $5 million share placement to Independence Group NL and the $6.3 million share placement to Tembo, significantly strengthens the company’s financial position for future growth.”
“We look forward to putting investors funds to work,” notes Orion MD and CEO Errol Smart.
“Our primary focus is Prieska, however, given the quantum of funds raised under the placements, we are also in the fortunate position of being able to invest in the exploration of our highly prospective landholdings that present significant potential further upside for shareholders,” he adds.