Orion Minerals MD and CEO Errol Smart
PERTH (miningweekly.com) – Copper developer Orion Minerals on Wednesday unveiled plans to raise up to A$13-million in a two tranche share placement to sophisticated and professional investors.
The company will place 882-million shares at an issue price of 1.5c each, with the first tranche consisting of 710-million shares to raise A$10.7-million under Orion’s existing placement capacity.
The second tranche of 171-million shares, to raise a further A$2.6-million, will be placed subject to shareholder approval. The second tranche placement will include share subscriptions from nonexecutive director Tom Borman, chairperson Denis Waddell and MD and CEO Errol Smart.
The share placement would also consist of a significant option package, with placement participants offered four free attaching unquoted options for every share issued, exercisable at 1.7c each and expiring at the end of November this year.
Orion told shareholders that the share placement had been cornerstoned by privately owned mining group Clover Alloys, which had subscribed for 440-million shares, or A$6.7-million worth of shares. The placement is also being strongly supported by existing shareholder Delphi Group and Tembo Capital.
“Securing the involvement of Clover Alloys as part of a broad strategic funding package represents a game-changer for Orion. The combination of a strongly supported A$13-million placement plus an options package that provides a clear pathway to securing a total equity funding injection of A$73-million, puts us in a strong position to realise our growth vision as a major new South African base metals producer,” said Smart.
“Clover Alloys is a highly regarded privately owned mining group with an enviable track record of value-creation and success in rapidly constructing and operating highly efficient processing plants. Clover Alloys’ expertise will be invaluable to Orion as we complete the feasibility studies at Prieska and Okiep and execute our rapid development plan.
“This investment brings huge momentum to our company and, together with the support of our cornerstone shareholders, puts us in an outstanding position to become a near-term producer,” said Smart.
Orion said on Wednesday that the placement, together with other funding sources already announced, including the $87-million funding package from Triple Flag Precious Metals and the $250-million funding facilities secured from the Industrial Development Corporation, comprised a strategic funding package which will position Orion to become a rapidly growing supplier of future-facing metals to global markets at a time when demand for these metals is anticipated to surge as a result of global decarbonisation efforts.