PERTH (miningweekly.com) – Copper developer Orion Minerals has secured an option to acquire the entire furnished head office and database of the O’Okiep Copper Company, in South Africa, for R25-million, allowing the company to fast-track exploration and evaluation of its Okiep copper complex (OCC).
The OCC transaction would include all historical mining and exploration records over the area, as well as historical due diligence reviews over much of the Northern Cape province, including Orion’s own Prieska copper/zinc mine and the Areachap Belt.
Orion earlier in February struck an exclusive option to OCC from South African Tantalum Mining (SAFTA) for A$7.5-million.
Orion MD and CEO Errol Smart on Monday said that the OCC transaction continued to provide the company with opportunities to fast-track its evaluation of this copper district.
“The acquisition of this incredible dataset comprising more than 150 000 hard copy records and including drilling and sampling of more than 26 000 drill holes, is a remarkable coup for the company. With a replacement value of hundreds of millions of Rand and encompassing more than 60 years of intensive work by top explorationists and geologists of the time, this acquisition is a tremendous step forward for Orion.”
Smart said that as a result of this deal, the company would have immediate access and use of all the data, which would allow a giant step forward with due diligence investigations over the next six months.
“Significantly, the data which was not available to Orion previously, also adds value to Orion’s existing mineral rights in the Northern Cape, as it includes important information on the Prieska copper/zinc mine and other prospects where we are currently drilling.”
Along with the dataset, Orion will also be acquiring the original O’Okiep Copper Mines head office, which previously supported a team of 250 staff. Several accommodation units are also included in the option to purchase.
Orion’s R25-million purchase will be payable in cash and Orion shares, with Orion having until July 31 to exercise its option over this purchase.