Orion is also focused on continuing with site engineering works at the Prieska Copper Zinc Mine and drilling processes at Okiep. Picture: Supplied
South African shareholders underpinned Orion Minerals’ R44 million share purchase plan which closed last week, the company said on Friday.
The company’s share purchase plan closed on July 23, helping it to raise a total of A$3.6 million, which is equivalent to R44m. The shares subscribed to under the scheme will be be issued tomorrow.
Eligible shareholders were entitled “to apply for parcels of new fully paid ordinary shares from a minimum parcel of A$165 or R2 000 up to a maximum of A$30 000 or R365 000” without incurring brokerage or transaction costs.
The shares under Orion’s share purchase plan were issued at an issue price of A$1.5 cents per share that is equivalent to R18 cents. This was the same price that investors in the company paid for the company’s recent share placement scheme.
“The share purchase plan attracted strong support from shareholders, particularly those in South Africa, where a total of R33.6m was raised. The highly successful share purchase plan follows the capital raising completed earlier this month by way of placement of new shares to sophisticated and professional investors to raise R92.3m,” explained Orion.
About 513 million shares in Orion were issued under the share placement scheme at an issue price of A$1.5 cents per share or R18 cents per share.
Orion Minerals chairperson Denis Waddell said the participation of the South African shareholders in the company’s share purchase plan “reflect Orion’s positive standing” in the local community.
“Orion shares are well traded on the Johannesburg Stock Exchange, providing valuable investor support in our local market. The proceeds of the SPP take the total amount of the recent capital raising to $11.3m – a fantastic outcome particularly considering the current volatile conditions in global markets,” said Waddell.
This further strengthened Orion’s “treasury position”, putting it “in a strong position to complete and deliver the bankable feasibility studies” on the company’s two copper development projects in South Africa.
Orion is also focused on continuing with site engineering works at the Prieska Copper Zinc Mine and drilling processes at Okiep.
Orion believes there is massive upside potential for the Prieska mine, with Errol Smart, Orion Minerals CEO, saying “off-takers are keen” on product from the mine.
“There is a fantastic upside on the ore body at Prieska. Over the next 60 days, we will be able to show 2024 current figures (of mineralisation),” said Smart in a presentation to investors recently.
He said Orion had virtually built a mine site Prieska, with the site now housing 200 people in addition to mining machinery that is already present. Power and water supplies have already been connected.
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