JSE and Australian-listed Orion metals has requested a trading halt ahead of what it calls a “a material announcement” in relation to exploration results at its Okiep Copper Project.
The company said in a statement on Thursday that the trading halt was requested until April 22, “or such earlier time as Orion makes an announcement to update the market in relation to the exploration results”.
The group expected to make an announcement to the market concerning this matter before the commencement of trade on Monday, it said.
It said it was not aware of any reason the trading halt should not be granted.
The company said on Wednesday it had made further progress in its Okiep Copper Project acquisition, which was first announced in 2021. It said acquisition agreements were being signed.
“We are extremely pleased that we have finally received confirmation that the majority of the outstanding conditions have been fulfilled for the acquisition of the Okiep mineral rights first announced on February 2 2021,” said Orion CEO and MD Errol Smart.
Orion wants to see the Okiep Copper Project become its second base-metal production hub in the Northern Cape, alongside its flagship Prieska Copper-Zinc Mine.
Orion, through its subsidiary, the New Okiep Mining Company (NOM), is acquiring prospecting rights and the mining right at Okiep from Southern African Tantalum Mining.
As previously reported in Business Day, in 2022 the company reached an agreement with the Industrial Development Corporation (IDC) in which the state-owned development finance institution took a 43.75% share in the New Okiep Mining Company while Orion kept the other 56.25% share. In terms of the deal, the IDC agreed to provide R34.5m to support Okiep’s pre-development costs, including the completion of feasibility studies.
Orion said on Wednesday that the first phase settlement consisting of R10.86m in cash and R35.1m in Orion shares was due to be completed as soon as SA exchange control approval was received. This initial consideration includes the Southern African Tantalum Mining mining right, which was transferred to NOM in December 2023.
The remaining total purchase consideration amounts to R59.6m.
“While we have been able to continue operating on the properties and progressing the projects, we have now moved to finalise the flat mines area bankable feasibility study on the NOM mining right. We are now only awaiting the approval of the water use licence before the project is fully permitted, allowing us to commence mine development.
“The timing is therefore opportune to complete the acquisition of the mining right before progressing the funding of the mine,” Smart said.
Orion hopes to achieve its first copper sales from its development projects in SA in 2025. It said earlier in 2024 that trial mining had begun at Prieska, with copper ore from there already being stockpiled on the surface at the mine.
With Denene Erasmus
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.