Dual-listed Orion Minerals highlights that it has taken another important step in advancing the multi-pronged funding strategy for its flagship base metals project, in the Northern Cape of South Africa, after repaying a legacy loan facility.

The company has satisfied one of the key conditions precedent to draw down both the R250-million Industrial Development Corporation of South Africa (IDC) convertible loan facility and the A$10-million Triple Flag Precious Metals early funding arrangement, through the repayment of the Anglo American sefa Mining Fund (AASMF) loan facility.

Both the IDC convertible loan and Triple Flag early funding arrangement form part of a broader funding strategy outlined in recent months that will underpin the near-term development of both the Prieska copper/zinc project and the Okiep copper project.

Drawdown of the two funding arrangements will enable Orion to complete the feasibility study for early mining works and begin mine dewatering at the Prieska project.

Prieska is transitioning to the mine development and construction phase following the conclusion of the key elements of an overarching strategic funding package.

In November 2015, Prieska Copper Zinc Mine (PCZM) – a majority-owned subsidiary of Orion and AASMF entered into a R14.25-million loan agreement for the further exploration and development of the Prieska copper/zinc project.

Orion has paid AASMF A$1.9-million (R23.9-million) in cash, as repayment of the loan facility in full and, notably, AASMF has released the security associated with the loan facility, being 29.17% of the shares held in PCZM by Agama Exploration and Mining (a wholly-owned subsidiary of Orion), that were pledged as security to AASMF for the performance by PCZM of its obligations in terms of the loan facility.

“The repayment of this legacy loan facility with AASMF is a very important milestone for Orion and our development strategy.

“While quite technical in nature, the release of the security associated with this 2015 funding arrangement is a critical milestone that will allow us to draw down the new funding sources we have put in place with the IDC and Triple Flag,” says Orion MD and CEO Errol Smart.

“The third leg of our new funding strategy is the recent placement and associated options package underpinned by Clover Alloys and existing shareholders Tembo Capital and Delphi Group.

“This clears the decks for us to move forward with our broader funding and development strategy for PCZM, as recently announced,” he adds.