PERTH (miningweekly.com) – Copper developer Orion Minerals on Wednesday announced plans to raise up to A$20-million in a three-tranche share placement to sophisticated and professional investors.
Orion has already received firm commitments for the first two tranches, which will raise a combined near A$6-million.
Priced at 2c a share, the first tranche of the placement will consist of 156-million shares, raising an initial A$3.1-million under the company’s existing 15% placement capacity. The second tranche of 145-million shares will raise a further A$2.9-million, with chairperson Denis Waddell and non-executive director Tom Borman subscribing for a combined A$2.2-million in shares.
The second tranche placement will be subject to shareholder approval.
Orion said that the company could issue up to an additional 699-million shares, also at a price of 2c each, to raise a further A$14-million, again subject to shareholder approval at a meeting planned for August.
The first and second tranche placement would be done with one free attaching option for each two shares issued, with an exercise price of 2.5c each and an expiry date of the end of June 2023.
The capital raised will be used to progress the development of the Prieska copper/zinc mine, in South Africa, including the start of mine dewatering and the completion of feasibility studies on an early production scenario.
Funding will also go towards the progression of a feasibility study on the Okiep copper project, and to undertake battery precursor product production test work at the Jacomynspan nickel/copper/cobalt/platinum group elements project, and to progress exploration.
“Considering the events that have unfolded in global financial markets since we entered a trading halt on June 10, we are very pleased with the support we have received from existing and new investors who have supported this capital raise,” said Orion MD and CEO Errol Smart.
“We have decided to undertake the placement in three tranches to allow the many investors with whom we have had positive engagement in recent weeks some additional time to finalise their participation. In addition, we intend to offer a share purchase plan to allow our loyal existing shareholders to participate at the same offer price as the share issue under the placement.”
Smart said that while financial markets have been in turmoil recently, Orion shared the view of commentators that the broader battery metals thematic had not gone away.
“The prices of copper, zinc, nickel and other future-facing metals are still very strong, and underlying demand from the renewable energy and electric vehicle sectors continues to increase, and will do so for many years to come. With advanced, near-term production assets in one of the world’s best mining jurisdictions, the Northern Cape, Orion stands ready to play a key role as a supplier of these metals. The funds raised through this raising will see us take major steps towards realising this vision.”