Orion Minerals Ltd (ASX:ORN, JSE:ORN) is closing in on the acquisition of a controlling stake in the Okiep Copper Project (OCP), 570 kilometres north of Cape Town in South Africa's Northern Cape Province.
The deal aligns with Orion's strategy to become a major player in the international base metals sector.
Since announcing the acquisition on April 17, Orion has passed some major milestones.
Approvals secured
The Industrial Development Corporation of South Africa Ltd (IDC), a key funding partner in OCP, has secured internal approvals and signed addenda to the agreements with Orion.
All conditions for the initial phase of the Okiep transaction have been met, including approvals from regulatory bodies like the South African Reserve Bank and the Takeover Regulation Panel.
Orion expects to finalise the first phase of the Okiep transaction by May 7, 2024, with a payment of ZAR46 million (around A$3.8 million), combining cash and fully paid ordinary shares.
Shareholder approval will be sought at a general meeting on May 23, 2024, to ratify the agreement for issuing these shares.
The IDC has approved ZAR43.75 million (some A$3.6 million) for drilling and operating costs at the New Okiep Mining Flat Mines Project.
An 11-hole, 5,800-metre confirmation diamond drilling program is underway across the Flat Mines East, Flat Mine South and Flat Mine North deposits to confirm historical data, provide geotechnical information and support metallurgical tests.
Outstanding results
The confirmation drilling follows what the company calls outstanding results from the first hole, which returned an intersection measuring 49 metres at 4.89% copper from 231 metres down-hole, including 10.23 metres at 12.47%.
Further results are expected in May 2024.
With approvals from key partners and regulatory bodies in place, Orion is free to move forward with the acquisition, tapping into the strategic potential of the Okiep Copper Project amid a resurgence in the copper market.
Orion managing director and CEO Errol Smart said: “We are very pleased to have reached the final stages in our acquisition of a controlling interest in the Okiep Copper Project, which is a high-quality asset that forms an integral part of Orion’s growth pathway to become a significant new mid-tier ASX/JSE listed copper producer.
“Orion’s 641-square-kilometre package of mineral rights holdings in the Okiep copper district represents a highly strategic asset, located in the heart of a rich historic mining camp that produced over 2 million tonnes of contained copper under previous ownership including Newmont and Goldfields.
“This district is in the early phases of an exciting new chapter in its history, with a huge opportunity to meet surging global demand for copper metal from the EV and AI-driven revolutions that are transforming the global economy.
“Building on the momentum generated by our superb recent drilling intercepts, we have an ongoing drill program with more assays expected in the coming weeks and a feasibility study well advanced and on track for delivery in July this year.
Given the major activity at the Okiep Copper Project, we are looking forward to delivering significant news flow from Okiep in the coming months.”