ORION Minerals is to resume exploration drilling following a Covid-19 induced hiatus, raising A$350,000 in a share placement to fund its efforts.
The company announced today it would issue 10.5 million shares for the equivalent in South African currency of 40 cents per share.
The funds would be used to “… resume exploration activities, including drilling, at the company’s exploration projects located in South Africa’s Northern Cape Province,” it said. Shares in Orion Minerals are currently trading at 41c/share in Johannesburg.
“The company expects to announce details of these planned exploration activities shortly,” it said in an announcement to the Johannesburg Stock Exchange today.
Despite the effects of the pandemic, Orion has advanced its flagship Prieska Copper-Zinc project. In August, it was granted a mining permit over the remainder of its Northern Cape property by the South African government.
Orion has spent about R450m to date on the prospect which is forecast to cost A$432m (R5.2bn) to build. Once completed, the project will produce 22,000 tons of copper and 70,000 tons of zinc annually over 12 years. Cash flow from the project is estimated to be A$1.6bn (R19.4bn) over the project’s life of mine.
Discussions with potential financiers have been underway with Errol Smart, MD of Orion Mining saying in May there was interest shown by the South African government’s Public Investment Corporation and the Industrial Development Corporation.
Smart wants the mine to start construction in the first quarter.
