ASX- and JSE-listed Orion Minerals has reached the final stages of its acquisition of a controlling interest in the Okiep copper project, located about 570 km north of Cape Town in the Northern Cape.

Strategic funding partner the Industrial Development Corporation of South Africa (IDC) has now obtained internal approvals and counter-signed the addenda to the agreements which will see Orion acquire the controlling interest in Okiep.

In addition, all the supplementary conditions to implement the first phase of the Okiep transaction have been fulfilled, including receipt of the relevant approvals from the Foreign Surveillance Department of the South African Reserve Bank and the South African Takeover Regulation Panel.

Given this, the Okiep transaction agreements have now become unconditional.

“Orion’s 641 km² package of mineral rights holdings in the Okiep copper district represents a highly strategic asset, located in the heart of a rich historic mining camp that produced over two-million tonnes of contained copper under previous ownership, including Newmont and Gold Fields.

“This district is in the early phases of an exciting new chapter in its history, with a huge opportunity to meet surging global demand for copper metal from the electric vehicle and artificial intelligence-driven revolutions that are currently transforming the global economy,” Orion MD and CEO Errol Smart said on May 6.

Orion said that it expects to complete the first phase of the Okiep transaction on May 7, with payment of R46-million, made up of R11-million in cash and R35-million settled by way of Orion issuing fully paid ordinary shares.

Orion will at a general meeting to be held on May 23 seek shareholder approval of, among other things, the ratification of the agreement to issue the consideration shares.

The IDC approval has been received for R43.75-million funding for its proportional share of drilling and operating costs for the New Okiep Mining Flat Mines project.

Moreover, a diamond drilling programme started in the Flat Mines area of Okiep in February. Eleven diamond core drill holes have been planned, made up of five holes at Flat Mine East, four holes at Flat Mine South and two holes at Flat Mine North, comprising a total of 5 800 m.

The programme has been designed to confirm historical drilling information and resultant interpretations, provide geotechnical information, and provide additional drill core for confirmatory metallurgical testwork.

Assay results from the first two completed holes at Flat Mine East were reported on April 22 and included the high-quality intercept in drill hole OFMED153 which returned 49 m at 4.89% copper from 231 m to 280 m, including 10.23 m at 12.47% copper.

Drilling is progressing well, Smart said, with the next batch of assay results from this ongoing drill programme expected before month-end.

“Given the major activity at the Okiep copper project, we are looking forward to delivering significant news flow from Okiep in the coming months,” Smart added.

Completion of the Flat Mines feasibility study is on schedule for completion in July, Orion said.