PERTH (miningweekly.com) – Dual-listed Orion Minerals has secured a new A$3.6-million bridge loan facility from financier Tembo Capital Mining Find to progress the bankable feasibility study of its Prieska zinc/copper project, in South Africa.
The loan facility will be made available in two tranches, with the first instalment of A$0.6-million to repay all the amounts owing under the current bridge loan. The facility’s interest will be capitalsed at 12% a year, accrued daily on the amount drawn down.
Tembo could elect to have the balance of the loan facility converted into Orion shares at a price of 2.6c a share, being the same conversion price as the existing 2017 convertible notes. The outstanding amount must be repaid by January 25, 2020.
“We are very pleased with Tembo’s ongoing support as well as the support of the holders of the convertible notes, as it enables the continued rapid advance of the Prieska zinc/copper project through to the completion of bankable feasibility studies,” said Orion chairperson Denis Waddell.
“Our focus is on bringing Prieska into production as quickly as possible, based on the paramaters outlined in the positive scoping study released in December 2018. The bankable feasibility study is well advanced and on track to be completed in the second quarter of 2019.”