With a view to progress its Prieska Copper Zinc Mine, Orion Minerals Ltd (ASX:ORN, JSE:ORN) has secured firm commitments to raise ~A$7.7 million via a placement to sophisticated and professional investors, and is now undertaking a share purchase plan (SPP) to raise up to A$5 million from eligible shareholders.
Under the placement, Orion will issue 513 million shares at an issue price of 1.5 cents per share.
SPP now open
The SPP, to raise up to A$5 million, provides shareholders an opportunity to increase their shareholding in Orion at the same 1.5 cent offer price as the shares issued under the placement.
Eligible investors can subscribe for new shares in parcels starting from just A$165 up to a maximum of A$30,000.
Existing eligible shareholders — those with a registered address in Australia, New Zealand, South Africa, the European Union (Germany and Netherlands), Jersey (Channel Islands), United Kingdom, Mauritius and Singapore, who held Orion shares as at June 28, 2024 — the opportunity to purchase shares under the SPP.
Purpose of the funds
Orion intends to apply the funds raised from the placement and SPP, principally to progress the development of its Prieska Copper Zinc Mine, including the ongoing mine dewatering, access development, concentrator plant and tailing storage facility procurement and construction and general operational readiness works.
It will also assist in permitting and acceleration of infrastructure development for early production in respect of the Okiep Copper Project, along with advancing mineral resource expansion and exploration on the company’s prospecting and mining rights.
Rising copper price
The raise comes amid an increasing positive outlook for copper.
Copper has gained around 4% over the past four days, reaching US$9,912 per tonne, while iron ore futures have increased by around 8% to US$113.65 per tonne.
Citi commodity strategists, who earlier forecast a rise in copper prices, now believe the metal could hit US$10,000 per ton within weeks.
Read more: Copper outlook looks positive as iron ore shows signs of life despite volatility