- It was another quiet quarter at Orion Metals (ORM) from June to August, which conducted no exploration work at its Top Camp project in Queensland
- The company believes the project is prospective iron-oxide-copper-gold (IOCG)-type deposits as well as alluvial gold
- As such, the company is looking for funding or joint venture options so it can afford to explore the project
- Meanwhile, it seems the main focus of the August quarter was the sale of Orion’s Tanami West interest, which was announced in August last year
- The company received $130,000 out of the total $250,000 soon after the sale was announced and will receive the rest once it’s been completed
- Shares in Orion were untouched today, closing grey at 1.6 cents each
It was another quiet quarter at Orion Metals (ORM) from June to August, which conducted no exploration work at its Top Camp project in Queensland.
It seems the main focus for the company at this point in time is the sale of its Tanami West Project in WA, which Orion is handing over to PVW for $250,000.
The sales deal was struck in August 2019, under which Orion is giving up its 65 per cent interest in the project’s seven exploration tenements. The company is busy completing the transfer process to give ownership to PVW.
However, while the company did not spend any time exploring its tenements, it did renew its mining lease for Top Camp for five years and lodge a renewal application for an additional five years.
Orion said it considers the project to be prospective for iron-oxide-copper-gold (IOCG)-type deposits as well as alluvial gold.
As such, the company said it is busy seeking out potential sources of funding or some joint venture opportunities so that it has the cash to find out what’s under the ground.
Taking a look at the company’s financials, Orion went cashflow-negative by $131,000 from an operational standpoint over the quarter. Moreover, the company had just $12,000 in the bank at the end of August.
Given the low cash position, Orion received a $99,000 loan from major shareholder Excellence Holding HK at zero interest and with no fixed term in August this year.
On top of this, the company said it is set to receive the remaining $120,000 from the Tanami West sale soon; Orion was paid $130,000 for the sale in September 2019, with the rest due once the sale is complete.
Finally, Orion has 30.8 million outstanding options held by Excellence Holding which are exercisable by December 21 this year at half a cent each — representing another potential $154,000 worth of funding.
As such, the company has enough funding available to keep chugging along as it looks for partners to get exploration at Top Camp underway.
Shares in Orion were untouched today, closing grey at 1.6 cents each. The company has an $8.23 million market cap.