Orion Minerals Ltd (ASX:ORN) is well placed to deliver on its growth strategy at the Prieska Copper-Zinc Project in South Africa during 2020 after securing a total of $9.5 million during recent capital raising efforts.
The final component of this was a share purchase plan (SPP) which attracted strong support from eligible shareholders with applications totalling $1.75 million received.
Shares were issued at 2.5 cents each, which was the same price as the shares issued under the recently completed $7.7 million placement.
“An outstanding year”
Managing director and CEO Errol Smart said: “This caps off what has been an outstanding year which has seen us achieve numerous milestones including delivery of a substantial mineral resource and ore reserve, a high-quality bankable feasibility study, substantially completing our permitting, securing new BEE investors and making excellent progress with post-BFS optimisation and project funding.
“The outstanding success of the SPP clearly demonstrates the continued strong support from our shareholders for our strategy to transform Orion into a substantial international base metals producer and I would like to thank shareholders for their continued support.
“The proceeds of the SPP will be used to complete optimisation studies and early-stage works for the Prieska project, as well as to progress our funding strategy with the advantage of a strengthened balance sheet.”
Under the SPP, Orion provided each eligible shareholder with the opportunity to subscribe for new ordinary fully paid shares in parcels starting from $2,000 up to a maximum of $30,000 at an issue price of 2.5 cents per share, without incurring brokerage or transaction costs.
In world-class geological provinces
Smart added: “Orion shareholders also have exposure to two world-class geological provinces in the Areachap Belt of the Northern Cape and in the geologically similar Fraser Range Province in Western Australia, through our joint venture with Independence Group NL (ASX:IGO).
“In that regard, we have exposure to an ongoing, well-funded exploration program in close proximity to the recently announced Rockford discovery by Legend Mining Limited (ASX:LEG).”