The Anglo American Sefa Mining Fund (AASMF) will become a shareholder of ASX- and JSE-listed Orion Minerals.
This follows after the parties agreed to restructure Orion subsidiary Repli Trading, with Orion to issue shares to AASMF in consideration of preference shares held by the fund in Repli, which were issued to AASMF as part of a seed capital investment which assisted the previous owners of Orion’s flagship Prieska zinc/copper project, in the Northern Cape, to undertake early drilling and engineering work.
This capital investment assisted Orion in securing substantial foreign investment that has allowed the company to advance the Prieska project to the point where the company recently published a scoping study and updated mineral resource and is poised to deliver a comprehensive bankable feasibility study (BFS) in the second quarter of this year, Orion MD and CEO Errol Smart said on Monday.
Orion will issue between R23.9-million and R24.9-million in shares to AASMF.
The company intends to seek shareholder approval for the deal in the second quarter of the year.
The agreement is expected to be completed by May 31.