Orion Minerals Ltd (ASX:ORN, JSE:ORN) has boosted its cash position by A$425,000 at a key time during the transition from an exploration company into an operating copper mining company in South Africa.
Clover Alloys (SA) has decided to exercise 25 million options at 1.7 cents (ZAR20 cents) and expiring on November 30, 2023.
As a result, funds of ZAR5.0 million (A$425,000) have been transferred to Orion, which expects to issue the fully paid ordinary shares to Clover Alloys shortly.
These options were acquired in the company's placement undertaken earlier this year.
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Clover Alloys remains a significant and supportive shareholder of Orion, with a current shareholding of ~9%.
Production strategy
In the company's September quarterly report, managing director and CEO Errol Smart said: "With our multi-pronged funding strategy implemented last quarter, we were able to push ahead with a range of key activities during the September quarter which saw our strategy to bring the PCZM (Prieska Copper-Zinc Mine) back into production, rapidly gaining momentum.
“At the core of our strategy is securing an appropriately skilled, local resident operating team comprised of select full-time staff supported by skilled contractors.”
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"We have been particularly successful in securing the services of the previous mine senior management who bring valuable experience in the mining and metallurgical operations for this specific orebody,” Smart said.
“We spent the greater part of the September quarter completing essential preparations, such as installing underground refuge chambers, upgrading the hoisting capacity of the emergency escapeway to the surface and sourcing and installing key ventilation equipment in preparation for trial mining."
Second hub
The MD added: “While we are very busy at Prieska, we have not lost sight of the huge opportunity we have at our second emerging production hub, the Okiep Copper Project, also in the Northern Cape.
"During the quarter, we delivered an increase in the total mineral resource for the Flat Mines area at Okiep following a detailed geological review.
"This has given us greater confidence in the resource model, with the positive outcome now incorporated into the OCP BFS."