Australia- and Johannesburg-listed Orion Minerals has secured firm commitments for a placement of new fully paid ordinary shares to sophisticated and professional investors and loan conversions for about A$5.8-million, or about R67-million. 

About 522-million shares will be issued under the placement and loan conversions, at an issue price – or deemed issue price, as applicable – of A$0.01 a share, or 13c a share in rand terms.

The company says it also intends to offer a share purchase plan (SPP) to existing eligible shareholders, providing existing eligible shareholders with an opportunity to buy up to A$30 000, or R355 000, of shares at the same offer price as the shares issued under the placement.

The combined proceeds of the placement and SPP will be used to advance its Prieska copper/zinc mine and its Okiep copper project, which are both located in South Africa’s Northern Cape.

The funds will be used to partially fund the development of the Upper area of the Prieska project, including ongoing dewatering and site works; for mine development optimisation studies and ongoing site works at Okiep; and for general working capital purposes, including work associated with the finalisation of offtake-related funding for the development of Prieska.

SHARE PLACEMENT BREAKDOWN

Orion notes that, as part of the overall capital raising, it has received firm commitments for a placement to sophisticated and professional investors comprising the issue of about 289-million shares at the placement price to raise about A$3.3-million, or about R37-million.

Further, Tarney Holdings – an entity associated with Orion chairperson Denis Waddell – has also agreed to subscribe for about A$500 000 worth of shares – subject to shareholder approval – at a deemed issue price to convert amounts outstanding, including interest, under an unsecured loan agreement provided to Orion by Tarney Holdings in June.

In addition, Orion says long-term supportive shareholder Ratel Growth – a company of which previous director Thomas Borman is the controlling shareholder – has also agreed to subscribe for about A$2.1-million worth of shares at a deemed issue price to convert the total amount outstanding, including interest, under an unsecured loan agreement provided to Orion by Ratel Growth in April.