Orion CEO Errol Smart
PERTH (miningweekly.com) – ASX- and JSE-listed Orion Minerals has raised A$11-million through a share placement to progress its Prieska zinc/copper project, in South Africa's Northern Cape province.
The company, led by CEO Errol Smart, on Monday said that the shares, priced at 3.7c each, would be placed in two tranches, with the first consisting of 91.6-million shares, to be conducted under Orion’s existing placement capacity. The second tranche of 205.7-million shares will be subject to shareholder approval, at a general meeting planned for early August.
“We are delighted with the support received from new and existing shareholders and welcome a number of new institutional investors to the register,” said Orion chairperson Denis Waddell.
In addition to the share placement, Orion shareholder Tembo Capital Mining and its affiliated entities will also subscribe for a further A$6.3-million in Orion shares, at an issue price of 3.7c each. The share placement will see Tembo’s interest in Orion increase to an ultimate 22.99%.
The issue of shares to Tembo will be subject to shareholder approval.
“The quality of support for the placement signals the change in investment grade of the company as it moves closer to its production goals. The placement, in addition to the recent sale of the company’s Queensland tenement to Evolution Mining for A$2.5-million, a A$5-million share placement to Independence Group, and the A$6.3-million share placement to Tembo, significantly strengthens the company’s financial position for future growth,” said Waddell.
While Orion’s primary focus is on Prieska, the company will also use the proceeds to fund exploration of its other tenements in the Northern Cape.