Orion Minerals Ltd (ASX:ORN, JSE:ORN) has closed its share purchase plan (SPP), raising A$3.6 million (~ZAR44 million).
The SPP which closed on Tuesday July 23, 2024, received strong support from investors who would have been buoyed at the beginning of the month when Orion delivered the results of its first diamond drilled hole at the Flat Mine South (FMS) prospect of the Okiep Copper Project in South Africa.
The company hit 20.5 metres at 4.99% copper within a wider result of 43 metres at 3.41% from 527 metres.
The high-grade copper mineralisation is open for at least 200 metres down dip from this first drill hole, offering further potential for more exploration at depth.
The company’s bankable feasibility study (BFS) is also nearing completion.
“The proceeds of the SPP take the total amount of the recent capital raising to $11.3 million – a fantastic outcome particularly considering the current volatile conditions in global markets.
"This further strengthens our treasury position and puts us in a strong position to complete and deliver the Bankable Feasibility Studies on our two copper development projects in South Africa next month while continuing the site engineering work at PCZM and drilling at Okiep,” Orion chair Denis Waddell said.
SPP details
Orion announced that under the SPP, eligible shareholders were allowed to apply for parcels of new fully-paid ordinary shares. The minimum parcel was priced at A$165 (or ZAR2,000) and the maximum at A$30,000 (~ZAR365,000), with no brokerage or transaction costs. The issue price was set at A$1.5 cents per share (ZAR18 cents), matching the price paid by investors in the recent placement.
The SPP saw strong support from shareholders, particularly in South Africa, resulting in a total of ZAR33.6 million (~A$2.8 million) being raised. This successful SPP followed a recent capital raising through the placement of new shares to sophisticated and professional investors, which raised around A$7.7 million (~ZAR92.3 million).
About 513 million shares were issued under this placement, also at an issue price of A$1.5 cents per share (ZAR18 cents).
“I would like to sincerely thank all shareholders who have participated in the Placement and SPP. The SPP received particularly strong support from our South African shareholder base – which is a great result and reflects Orion’s positive standing in the local community,” Waddell said.
“Orion shares are well traded on the Johannesburg Stock Exchange, providing valuable investor support in our local market.”