Copper developer Orion Minerals is raising A$20m (about R221m) to fund the next phase of its base-metal projects in the Northern Cape.
The capital raising comprises three tranches, with A$6m already committed in the first two offerings, and the third is being finalised.
So-called battery metals — copper, nickel, zinc and cobalt — are enjoying a resurgence thanks to surging demand for batteries from the automotive industry, consumer electronics, and energy storage systems.
The company, which is listed on the ASX and the JSE, said the phased funding was due to the volatility on global markets since it halted trading in its shares on June 10.
“While financial markets have been in turmoil recently, we share the view of many experienced commentators that the broader battery metals thematic has not gone away,” Orion CEO Errol Smart said.
“The prices of copper, zinc, nickel and other future-facing metals are still very strong — and underlying demand from the renewable energy and EV sectors continues to increase, and will do so for many years,” he added.
The company, valued at R990m, believes the capital raising and other funding sources will put it in a strong position to get access to an $87m funding package from Canadian streaming and royalty finance company Triple Flag Precious Metals.
The money will be used to further develop Orion’s Prieska Copper-Zinc Mine, about 270km southwest of Kimberley, including the removal of water from the mine and completing feasibility studies.
The funds will also assist feasibility studies at the Okiep Copper Project, and test-work on the Jacomynspan nickel-copper-cobalt PGE project.
Orion shares were down 7.69% at 24c by 12.50pm.
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