Orion raises cash to advance South African project

PERTH (miningweekly.com) – Metals developer Orion Minerals will raise A$5.5-million in a share placement to progress its Prieska zinc/copper project, in South Africa.

Some 229.1-million shares will be placed in two tranches to sophisticated and professional investors, priced at 2.4c each.

The first tranche of 144.5-million shares will be issued under Orion’s 15% placement capacity, while the second tranche of up to 84.5-million shares will be subject to shareholder approval.

Orion said on Monday that proceeds from the placement would be used to progress an intensive resource drilling campaign at the Prieska project, in order to define a maiden mineral resource estimate. This resource estimate would form part of a bankable feasibility study.

Funds would also be used to continue exploration on the company’s Northern Cape tenements, and for working capital purposes.

Orion earlier this year gained a 73.33% foothold in the Prieska project through the acquisition of Agama Exploration & Mining for A$5.3-million.

The Prieska project historically produced some 430 000 t of copper and about one-million tonnes of zinc between 1971 and 1991, at which time it was closed.