Orion Minerals on Tuesday announced the details of its latest funding plan, which includes a rights issue for existing shareholders and board members.
The soon-to-be copper miner hopes to raise A$9.8m (R113.6m) for working capital to support its Prieska Copper Zinc Mine (PCZM) and Okiep Copper Project developments.
The group would issue A$5.8m (R67m) worth of new shares, A$3.3m of which had already been bought up by undisclosed “sophisticated and professional investors”, the company said.
Another A$0.5m would go to Tarney Holdings, of which chair Denis Waddell is a director and shareholder, while Ratel Growth, whose controlling interest is owned by former Orion director Thomas Borman, had subscribed for the remaining A$2.1m worth of new shares.
The funding plan also allows existing Orion shareholders to increase their stake in the company by up to A$30,000, in a bid to raise A$4m overall.
Orion CEO Anthony Lennox said the capital raising would enable the group to prepare for early works in the development of PCZM, the group’s flagship project and the first mine it planned to develop in SA, and progress the development of Okiep.
“We are pleased that a number of our largest shareholders participated in the placement. We appreciate their continued support, as we progress our transition to becoming a producing mining company in the near term,” said Lennox.
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