Orion Minerals announced that it plans to raise up to A$7.7 million (about US$5 million) through a private placement aimed at investors. Proceeds will mainly finance its copper operations in South Africa, including the Prieska and Okiep projects.
The company intends to issue about 515 million shares at A$0.015 each. It expects to complete the placement and related funding by the end of November, subject to shareholder approval. Orion said the funds will support preliminary works at the Prieska copper-zinc mine, including dewatering and site preparation.
Prieska is Orion’s flagship project, with an estimated annual output of 22,000 tons of copper and 65,000 tons of zinc over a 13.2-year mine life. Okiep, another copper deposit, has reported resources of 159,000 tons. A portion of the proceeds will also help advance financing arrangements needed to launch construction at Prieska.
This includes due diligence under an investment agreement signed with Glencore in September. If finalised, the Swiss-based group could provide a loan of $200 – $250 million. Orion is also negotiating with other potential investors to secure the remaining funds for Prieska, estimated at about A$578 million.
