Orion Minerals Ltd (ASX:ORN) has increased its share placement to sophisticated and professional investors by $1.3 million to $7.7 million through the placement of 308.7 million shares at 2.5 cents per share.
On November 1 and 5 the company issued a total of 254.8 million shares in the company at 2.5 cents per share to raise $6.4 million following the receipt of funds from investors.
Proceeds raised from the placement will be used for the bankable feasibility study (BFS) optimisation and early works at the flagship volcanic massive sulphide (VMS) Prieska Copper-Zinc Project.
The remaining funds will be earmarked for exploration on Orion’s tenements in the Northern Cape of South Africa as well as for working capital.
The placement has been made to sophisticated investors, pursuant to Section 708A of the Corporations Act 2001.
The issue of the placement shares falls within the 15% capacity for issues of equity securities without shareholder approval afforded by ASX Listing Rule 7.1.
Petra Capital acted as sole book-runner and sole lead manager to the Placement.
Share purchase plan also open to eligible shareholders
In addition to the placement, Orion announced an SPP on October 24 providing shareholders with an opportunity to increase their shareholding in the Company as it continues to advance the development opportunity at the Prieska Project.
The SPP opened on October 30 and is expected to close on November 29.