Orion MD Errol Smart
PERTH (miningweekly.com) – Mining major Anglo American’s enterprise development division, Anglo American sefa Mining Fund (AASMF), has taken a 3.7% interest in ASX- and JSE-listed Orion Mining.
AASMF in 2015 subscribed for 15.75-million redeemable preference shares in Repli Trading No 27, which is 73.33% held by Orion, at a subscription price of R1 a share, for a total investment of R15.75-million or A$1.58-million, as part of a seed capital investment with the previous owners of the Prieska project.
AASMF in March this year agreed to the redemption of the preference shares in exchange for ordinary shares in Orion.
Orion has now issued more than 77.5-million shares to AASMF, at a deemed issue price of 3.23c a share. No funds were raised in the share issue.
Meanwhile, the South African Department of Mineral Resources and Energy has granted environmental clearance for the Prieska copper/zinc project, Orion reported on Monday.
The granting of the environmental permit was a key milestone for the development of the project, clearing the way for the awarding of a mining right.
“We are rapidly ticking off the boxes towards the development of our flagship Prieska project, with the grant of the environmental authorisation representing a pivotal milestone in the development pathway, and paving the way for the award of the mining right, the final permit required to get the project construction under way,” said Orion MD and CEO Errol Smart.
“The Prieska project bankable feasibility study (BFS), which was released late last month, confirms a long-life, high-margin South African base metals mine with strong economics. We have long believed that Prieska represents a highly valuable strategic asset with the potential to become a significant source of high-quality copper and zinc concentrates, products increasingly sought after in green energy markets.”
The study estimated that the project would require a capital investment of A$378-million to develop.
Prieska will, over a ten-year "foundation phase", deliver 189 000 t of copper and 580 000 t of zinc, delivering an estimated net present value of A$574-million and an internal rate of return of 38%, pre-tax.
Smart on Monday said Orion’s focus was now on optimising the BFS and advancing project financing discussions, while also planning project implementation and finalising agreements with concentrate offtake partners.