Orion Minerals has announced a R92.3m capital raise to help advance its two main projects — Prieska Copper Zinc and Okiep Mines.
The miner, which is listed on the JSE and on the Australian Stock Exchange, said firm commitments had been received for a placement comprising about 513-million shares at an issue price of 1.5 Australian cents (18c) per share to raise about A$7.7m (R92.3m).
The funds will be used principally to progress the development of the Prieska Copper Zinc Mine and permitting and acceleration of infrastructure development for early production in respect of the Okiep Copper Project and ongoing exploration drilling at Okiep, the company said in a statement on Monday.
In addition to the placement, the company is offering a share purchase plan, with the opportunity to subscribe for new shares in parcels starting from $165 (R2,000) up to a maximum of $30,000 (R365,000) at an issue price of R18 per share to raise up to A$5m, or R60m.
This will provide existing shareholders with the opportunity to participate in this capital raise at the same offer price as the shares issued under the placement.
“With our two bankable feasibility studies for Prieska Copper Zinc and Okiep Mines now imminent, and ongoing drilling recently delivering very impressive copper intersections at Okiep, this capital raise allows work to continue on preparation for commercial mining and on exploration, while the optimum debt funding arrangements are negotiated with funding institutions,” CEO Errol Smart said.
“We are particularly pleased to be able to offer an SPP, which allows our exceptionally strong retail shareholding, that now has more than 22,000 individual holders, the opportunity to acquire shares at the same price to that offered to larger professional institutional investors under the placement.”
The placement is expected to be completed on or about July 16, it said.
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