PERTH (miningweekly.com) – Diversified metals miner Independence Group has taken a bigger stake in South Africa-focused explorer Orion Minerals, increasing its shareholding from 4.2% to 11.1%.
Independence will subscribe for A$5-million worth of Orion shares, priced at 5c each, with the two companies also entering into a collaborative working relationship, under which Independence secured matching rights to any potential joint venture (JV) or sale of Orion’s nickel projects in the Areachap Belt, in South Africa.
Under the agreement, Independence will be given the opportunity to purchase or earn-in to any Orion project in the area, prior to a third-party transaction, and on the same terms and conditions as any proposed third-party transaction.
Independence’s preferential rights included the Jacomynspan nickel/copper/cobalt project, which hosts a maiden mineral resource of 6.8-million tonnes, containing 39 480 t of nickel, 22 800 t of copper and 1 800 t of cobalt.
“We are very pleased to cement a relationship with a strategic investor with the qualities of Independence Group,” Orion MD and CEO Errol Smart said on Friday.
“Independence’s Nova Bolligner nickel and Jaguar zinc/copper mining operations in Western Australia have remarkable geological and engineering similarities to Orion’s advanced stage projects in South Africa. In addition, the exploration models and methods that Orion has employed are very similar to those being used by Independence in a similar geological terrain in the Fraser Range,” Smart said.
Orion will use at least 30% of the raised funds to explore nickel/copper/cobalt targets previously identified in regional exploration programmes.
The two companies previously entered into a JV agreement over a nickel/copper project in Western Australia, which saw Independence take an initial 4.2% stake in Orion for A$1.3-million.