Orion sells Eastern Goldfields assets, looks for more buyers

PERTH (miningweekly.com) – ASX-listed Orion Gold has struck a deal with fellow-listed miner Eastern Goldfields to divest of its noncore Eastern Goldfields project, in Western Australia.

The Eastern Goldfields project comprises a noncontiguous tenement package located in the Eastern Goldfields region, with Orion saying on Tuesday that the sale of the tenement package was consistent with the company’s decision to focus its resources and activities on the Areachap copper-zinc and gold project, in South Africa.

Under the terms of the agreement, Eastern Goldfields would pay Orion a cash consideration of A$125 000 and a further two-million unlisted options.

The first one-million of these unlisted options would be exercisable at a price of 16.8c each on ore before March 2018, while the second batch of unlisted options would be exercisable at 18.9c each on or before March 2020.

Eastern Goldfields had also agreed to procure subscriptions from external parties for more than 33.33-million shares in Orion, at an issue price of 1.5c each to raise A$500 000.

Orion told shareholders that proceeds raised from the sale and the capital raising would be used to progress exploration work as part of due diligence work being carried out at the Areachap project, and to progress exploration work at the Connors Arc project.

With Orion now focusing on its highly prospective South African and Queensland projects, the company is also actively seeking to sign a joint venture or sell its Fraser Range nickel-copper and gold project, in Western Australia, as well as its Walhalla gold and polymetals project in Victoria.