- Orion Minerals (ORN) agrees to a ZAR250 million (A$22 million) loan facility from the South Africa’s Industrial Development Corporation (IDC)
- The loan is to fund early mining works and key pre-development activities at the Prieska copper-zinc project in South Africa
- Funds from the facility will support the completion of the bankable feasibility study (BFS) on the early production plan at Prieska
- Further, funds will also allow the company to commence dewatering of the existing underground mine which is critical long-lead item for Prieska’s development
- Shares in Orion are down 11.1 per cent to close at 1.6 cents
Orion Minerals (ORN) has agreed to a ZAR250 million (A$22 million) senior secured loan facility from the South Africa’s Industrial Development Corporation (IDC).
The loan is to fund early mining works and key pre-development activities at the Prieska copper-zinc project in South Africa.
Funds from the facility will support the completion of the bankable feasibility study (BFS) on the early production plan at Prieska and allow the company to commence dewatering of the existing underground mine.
The dewatering project is a critical long-lead item for the development of the Prieska, given that total dewatering of the mine is required to access the main sulphide volcanogenic massive sulphide (VMS) orebody.
As the dewatering of the mine progresses, additional remnant pillars will be exposed.
Managing Director and CEO Errol Smart said the “landmark” funding agreement will allow the company to get pre-development work underway.
“This is a huge milestone for all our stakeholders, particularly for … the local communities that stand to benefit as this very significant new mining project for the Northern Cape region comes to life,” he said.
“Securing the IDC as a project partner at both of our Northern Cape project hubs – Prieska and Okiep – is a huge achievement by the Orion team.
“The trial mining phase and revised BFS are expected to be completed in mid-2023, allowing project financing to proceed to supplement the US$80 million Triple Flag stream financing announced in May 2022.”
The loan satisfies a key condition to the previously announced $10 million Triple Flag early funding arrangement, unlocking additional funding to support pre-development activities at Prieska.
Shares in Orion were down 11.1 per cent to close at 1.6 cents.