Orion Minerals Ltd (ASX:ORN, JSE:ORN) has secured firm commitments from sophisticated and professional investors for a placement of about 513 million shares at A$0.015 per share to raise A$7.7 million and plans to launch a share purchase plan for up to A$5 million.
The funds will be used primarily for development of the Prieska Copper-Zinc Mine as well as permitting and infrastructure development for early production from the Okiep Copper Project and ongoing exploration drilling at the latter.
Toward commercial mining
“With our two bankable feasibility studies for Prieska Copper-Zinc and Okiep mines now imminent, and ongoing drilling recently delivering very impressive copper intersections at Okiep, this capital raise allows work to continue on preparation for commercial mining and on exploration, while the optimum debt funding arrangements are negotiated with funding institutions,” Orion Minerals managing director and CEO Errol Smart said.
“We are particularly pleased to be able to offer a share purchase plan (SPP), which allows our exceptionally strong retail shareholding, that now has more than 22,000 individual holders, the opportunity to acquire shares at the same price to that offered to larger professional institutional investors under the placement.”
Orion's placement is expected to be completed on or around July 16, 2024.
SPP details
The SPP will be offered to eligible shareholders in parcels of shares starting from A$165 up to a maximum of A$30,000 at an issue price of A$0.015 per share, to raise up to A$5 million, allowing existing shareholders to participate in the capital raise at the same offer price as the placement.
This is expected to open for applications on July 5, 2024, and is expected to close for applications at 7:00pm (Melbourne time) on July 23, 2024.
The issue price represents a 1.7% discount to the volume weighted average price (VWAP) of the company’s shares trading on the ASX and a 16.1% discount to the VWAP of the shares traded on the Johannesburg Stock Exchange (JSE), each during the five trading days immediately prior to the date on which the offer was announced.
It also represents a 15% discount to the combined VWAP of the company’s shares on the ASX and JSE during the 10 trading days immediately prior to the announcement date of the SPP.
Use of funds
The funds will be used to:
- progress the development of the company’s 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;
- secure permitting and acceleration of infrastructure development for early production in respect of the Okiep Copper Project;
- advance mineral resource expansion and exploration on the company’s prospecting and mining rights;
- maintain all the company’s prospecting rights, to ensure timely applications for mining rights are submitted for projects in the Northern Cape of South Africa and related activities; and
- for general working capital purposes.