Orion Minerals Ltd (ASX:ORN, JSE:ORN) is looking to raise up to $3 million via a share purchase plan (SPP) to eligible shareholders that will help in the next phase of its development of its base metals assets in South Africa’s Northern Cape Province, notably its Early Production Strategy at the flagship Prieska Copper-Zinc Project.
The company has already received firm commitments of $6 million for the first two tranches of a three-tranche placement that is intended to raise up to $20 million.
Use of funds
The money raised will be used by Orion to:
- progress the development of the Orion’s Prieska Copper-Zinc Mine, including mine dewatering and the completion of feasibility studies for the Prieska Copper-Zinc Mine Early Production Scenario;
- progress the Okiep Copper Project feasibility study; and
- progress the battery precursor product production test work on the Jacomynspan Nickel-Copper-Cobalt PGE project, in the Northern Cape of South Africa.
It will also be used for related activities and general working capital purposes.
About the SPP
The SPP will open today and is expected to close on August 5, 2022.
Under the SPP, each eligible shareholder will be entitled to apply for parcels of new shares from a minimum parcel of $2,000 up to a maximum of $30,000 without incurring brokerage or transaction costs.
The issue price will be 2 cents per share which is a 13% discount to the volume weighted average price of Orion’s shares on the ASX during the five trading days immediately prior to the announcement date of the SPP.
Orion will issue up to150 million SPP shares under the SPP at an issue price of 2 cents per share. The company is looking to raise up to $3 million from the issue of SPP shares.