Orion Minerals Secures A$7.7M for Prieska and Okiep Projects

  • Orion Minerals raises A$7.7 million through a share Placement and Share Purchase Plan.
  • Funds to advance Prieska Copper Zinc Mine, Okiep Copper Project, and exploration efforts.
  • SPP allows existing shareholders to buy shares at 1.5 cents per share, up to A$30,000.

Orion Minerals Limited has announced a significant capital raising effort, securing A$7.7 million (ZAR92.3 million) through a Placement. This move aims to fund key projects and development activities.


Capital Raising Details

Orion Minerals (ASX/JSE: ORN) has secured firm commitments from sophisticated and professional investors. Approximately 513 million shares will be issued at 1.5 cents per share (ZAR18 cents), raising about A$7.7 million (ZAR92.3 million).

Placement and Share Purchase Plan (SPP)

The company is also offering a Share Purchase Plan (SPP) to eligible shareholders. This plan allows them to subscribe for new shares in parcels starting from A$165 (ZAR2,000) up to A$30,000 (ZAR365,000) at the same issue price as the Placement shares. The SPP aims to raise up to A$5 million (ZAR60 million).


Use of Funds

The funds raised from the Placement and SPP will be used for several key initiatives:

ProjectUse of Funds
Prieska Copper Zinc MineOngoing mine dewatering, access development, concentrator plant and tailing storage facility procurement and construction, general operational readiness works
Okiep Copper ProjectPermitting and acceleration of infrastructure development for early production
ExplorationAdvance mineral resource expansion and exploration on the Company’s prospecting and mining rights
General Working CapitalMaintain all the Company’s prospecting rights and ensure timely applications for mining rights are submitted

Management Commentary

Errol Smart, Managing Director and CEO of Orion, expressed his satisfaction with the capital raise. He highlighted the significance of the funding in advancing the company’s key projects.

“With our two Bankable Feasibility Studies for Prieska Copper Zinc and Okiep Mines now imminent, this capital raise allows work to continue on preparation for commercial mining and on exploration,” said Smart.

Smart also emphasized the importance of the SPP, which allows retail shareholders to participate at the same price as larger institutional investors.


Key Dates for SPP

EventDate
Record Date28 June 2024
SPP Opens5 July 2024
SPP Closes23 July 2024
Allocation Announcement and Scale-back (if any)29 July 2024
Issue Date for SPP Shares30 July 2024
Quotation of New SPP Shares31 July 2024
Dispatch of Holding Statements for SPP Shares5 August 2024