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Orion Minerals raising $5.5M for South African zinc-copper project

Mining
ASX:ORN      MCAP $111.0M
23 October 2019 23:58 (AEST)

Orion Minerals is looking to raise $5.5 million from shareholders to fund exploration at its copper and zinc project in South Africa.

The Prieska Project is dubbed the company’s “centrepiece” in its assets portfolio and has an estimated mineral resource of 19.13 million tonnes at 1.18 per cent copper and 3.59 per cent zinc.

Historically, the mining site has produced 430,000 tonnes of copper and one million tonnes of zinc. It is labelled as one of the world’s top-30 volcanogenic massive sulphide base metal deposits.

Orion’s Chairman Dennis Waddell explained, “the funds will be used to take us to the next significant milestones” at the Prieska project.

“Completion of optimisation studies on the already positive Prieska Copper-Zinc Project BFS study, commencement of Prieska Project early works, and progressing the financing negotiations and contracts preparation” will be the main funding areas, according to Dennis.

Roughly 222 million fully paid ordinary shares will be issued at 2.5 cents each to eligible shareholders. Investment advisors Tembo Capital has already committed $2.5 million to the raise.

The market hasn’t responded favourably to Orion’s raising efforts. Today, the company’s share price is down 7.41 per cent, currently sitting at 2.5 cents apiece, at market close.

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