Proceeds from the loan facility will be used principally to progress the bankable feasibility study (BFS), which is on track for completion in Q2 2019 and to repay the current bridge loan of $600,000.
Under the terms of the loan facility, Tembo may at its election, have the balance of the loan facility (including capitalised interest and fees) repaid by the issue of ordinary shares in Orion to Tembo at a deemed issue price of 2.6 cents per share (subject to shareholder approval).
Extension of maturity date of convertible notes
Orion’s convertible noteholders have approved the extension of the maturity date of their convertible notes (worth about $6.05 million) from March 17, 2019 to September 30, 2019.
Orion chairman Denis Waddell said: “We are very pleased with Tembo’s ongoing support as well as the support of the holders of the convertible notes, as it enables the continued rapid advance of the Prieska Zinc-Copper Project through to the completion of bankable feasibility studies.
“Our focus is on bringing Prieska into production as quickly as possible, based on the parameters outlined in the positive Scoping Study released in December 2018.
“The BFS is well advanced and on track to be completed in Q2 2019.”
Earlier this month, Orion revealed an upgraded resource of 30.49 million tonnes grading 3.7% zinc and 1.2% copper for its Prieska Zinc-Copper Project.
Orion managing director and chief executive officer Errol Smart recently said: “The completion of the first ‘global’ mineral resource for Prieska, encompassing all 2018 drilling data, is a great way to start 2019.
“The total mineral resource for the project now stands at over 30 million tonnes, cementing its position as one of the more significant new VMS development projects globally and highlighting its potential to underpin a substantial, long-life mining operation.”