Copper developer Orion Minerals told shareholders on Monday that it had reached the final stages in its Okiep copper project acquisition, which was first announced in 2021.
It said all conditions had been satisfied to proceed with the acquisition of a controlling interest in the project, including regulatory approvals and those from the Industrial Development Corporation (IDC) for additional funding. It hoped to complete the first part of the transaction this week.
Orion, which is listed on the JSE and in Australia, wants to see the Okiep project become its second base-metal production hub in the Northern Cape, alongside its flagship Prieska Copper-Zinc Mine.
“We are very pleased to have reached the final stages in our acquisition of a controlling interest in the Okiep copper project, which is a high-quality asset that forms an integral part of Orion’s growth pathway to become a significant new mid-tier ASX/JSE listed copper producer,” Orion’s CEO Errol Smart said.
The Okiep copper district, he said, had a “huge” opportunity to benefit from the expected rise in global copper demand from the renewable energy sector given its use in the manufacture of equipment such as solar panels.
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.
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 NOM while Orion kept the balance. 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 Monday the IDC had approved R43.75m of additional funding to fund its proportional share of drilling and operating costs at Okiep.
The first phase settlement consisting of R11m in cash and R35m in Orion shares was due to be completed later this week. This initial consideration includes the Southern African Tantalum Mining mining right, which was transferred to the NOM in December 2023.
The remaining total purchase consideration amounts to R59.6m.
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