PERTH (miningweekly.com) – Dual-listed base metals developer Orion Mining will issue 232.69-million new shares in the company, after its 2017 convertible note holders requested that the notes be converted.
Orion in 2017 issued the convertible notes, to a value of A$6.05-million, as part of a capital raising to acquire its Prieska copper/zinc project, in South Africa.
The convertible notes, each with a face value of 2.6c, were issued to various sophisticated and professional investors, with a maturity date of September 30.2019.
All of the convertible note holders have requested a conversion of their notes, with Orion telling shareholders on Tuesday that following the conversion, the company’s current liabilities will reduce by A$5.8-million, while the security held by the note holders over certain assets, would be released.
Orion was in September this year granted a mining right for the Prieska project, with the company currently looking at financing options for the the A$378-million project, which is expected to produce at a rate of 2.4-million tonnes a year, producing 189 000 t of copper and 580 000 t of zinc in its ten-year foundation phase.