Orion Minerals Ltd’s (ASX:ORN) major investors Tembo Capital Mining Fund II LP and Ndovu Capital X B.V. (Ndovu) have increased their majority stake in the South African asset holder by 5.58% to 22.99%.
The investor capital duo increased its number of shares by 172,918,918 shares or 70.92% to 430,918,918 shares, reflecting its participation in a June capital raising by Orion.
READ: Orion Minerals progresses South African assets with $19 million in the bank
The upped stake reflected Tembo’s choice to turn $6.3 million of loans into shares, leaving a debt of only about $600,000 for Orion to repay.
Orion pulled in $17.9 million with the capital raising in June priced at 3.7 cents a share.
Orion managing director and CEO, geologist Errol Smart, acknowledged the value of the funding this month, telling Proactive Investors: “We are in a strong position to fast-track our bankable feasibility study.”
The capital raising will help fund a definitive feasibility study for the 29.4 million tonne Prieska Zinc-Copper Project in South Africa, which is expected to be released by the beginning of next year.
READ: Africa Down Under Conference Perth to highlight mining and energy investments
Orion’s leader Smart is expected to deliver a company presentation during day one of the upcoming Africa Down Under Conference Perth tomorrow.
Smart told Proactive Investors last week: “Orion has secured investors that share this vision and we are working on developing a new, modern, base metal mining district in the Northern Cape.
“We see it as a huge advantage being able to start with a clean sheet of paper in a remote district, holding exceptional mineral endowment and with all the services and logistics in place.
“We can build mines with a vision of efficiency and best practice and not have to be dragged down by the legacy issues that most of the established mining districts in South Africa face.”