- Orion Minerals (ORN) will be undertaking a $6.2 million capital raise to advance its Prieska Copper-Zinc Project in South Africa
- To raise the funds, approximately 365 million shares will be issued to sophisticated and professional investors at a price of 1.7 cents each
- Additionally, Tembo Capital has subscribed for $2.1 million worth of shares, however, this is subject to shareholder and Foreign Investment Review Board approval
- Besides using the money for the Prieska Project, Orion will also use it for general working capital purposes
- Orion has ended the day with no change and shares have been trading for 1.9 cents each since July 28
Orion Minerals (ORN) will be undertaking a $6.2 million capital raise to advance its Prieska Copper-Zinc Project in South Africa.
To raise the funds, approximately 365 million shares will be issued to sophisticated and professional investors at a price of 1.7 cents each.
The placement will be undertaken in two phases with phase one issuing 346 million shares to raise $5.9 million.
Subject to shareholder approval, phase two will issue 19 million shares to raise the remaining $300,000. This is also subject to Foreign Investment Review Board (FIRB) approval.
This approval will be sought after at Orion’s general meeting scheduled for September 2020.
Additionally, Tembo Capital has subscribed for $2.1 million worth of shares at an issue price of 1.7 cents each, however, this is also subject to shareholder and FIRB approval.
Besides using the money for the Prieska Project, Orion will also use it for general working capital purposes.
“We are really pleased with the strong level of support received from both existing and new investors as part of this capital raising, including our long-term cornerstone shareholder Tembo Capital which has once again shown its commitment to bringing the Prieska mine back into production,” Chairman Denis Waddell said.
“The strong response to this raising reflects both the strong improvements being seen in copper and zinc prices and growing awareness amongst investors of just how shallow the global development pipeline is for both metals,” he added.
Orion has ended the day with no change and shares have been trading for 1.9 cents each since July 28.