Orion Minerals Limited has announced a significant capital raising effort, securing A$7.7 million (ZAR92.3 million) through a Placement. This move aims to fund key projects and development activities.
Capital Raising Details
Orion Minerals (ASX/JSE: ORN) has secured firm commitments from sophisticated and professional investors. Approximately 513 million shares will be issued at 1.5 cents per share (ZAR18 cents), raising about A$7.7 million (ZAR92.3 million).
Placement and Share Purchase Plan (SPP)
The company is also offering a Share Purchase Plan (SPP) to eligible shareholders. This plan allows them to subscribe for new shares in parcels starting from A$165 (ZAR2,000) up to A$30,000 (ZAR365,000) at the same issue price as the Placement shares. The SPP aims to raise up to A$5 million (ZAR60 million).
Use of Funds
The funds raised from the Placement and SPP will be used for several key initiatives:
| Project | Use of Funds |
|---|---|
| Prieska Copper Zinc Mine | Ongoing mine dewatering, access development, concentrator plant and tailing storage facility procurement and construction, general operational readiness works |
| Okiep Copper Project | Permitting and acceleration of infrastructure development for early production |
| Exploration | Advance mineral resource expansion and exploration on the Company’s prospecting and mining rights |
| General Working Capital | Maintain all the Company’s prospecting rights and ensure timely applications for mining rights are submitted |
Management Commentary
Errol Smart, Managing Director and CEO of Orion, expressed his satisfaction with the capital raise. He highlighted the significance of the funding in advancing the company’s key projects.
“With our two Bankable Feasibility Studies for Prieska Copper Zinc and Okiep Mines now imminent, this capital raise allows work to continue on preparation for commercial mining and on exploration,” said Smart.
Smart also emphasized the importance of the SPP, which allows retail shareholders to participate at the same price as larger institutional investors.
Key Dates for SPP
| Event | Date |
|---|---|
| Record Date | 28 June 2024 |
| SPP Opens | 5 July 2024 |
| SPP Closes | 23 July 2024 |
| Allocation Announcement and Scale-back (if any) | 29 July 2024 |
| Issue Date for SPP Shares | 30 July 2024 |
| Quotation of New SPP Shares | 31 July 2024 |
| Dispatch of Holding Statements for SPP Shares | 5 August 2024 |