Orion Minerals Secures A$22 Million In Funding Ahead Of BFS
Orion Minerals Secures A$22 Million In Funding Ahead Of BFS. Orion Minerals has announced that it has entered into a pivotal R250 million (~A$22 million) funding package with the Industrial Development Corporation of South Africa (IDC) to fund early mining works and key pre-development activities at the Prieska Copper-Zinc Project in South Africa’s Northern Cape.
The funding will be advanced as a senior secured, convertible debt facility with the proceeds applied to mine dewatering and trial mining operations as it completes the previously announced Early Production Plan for Prieska Copper-Zinc Mine (PCZM) to Bankable Feasibility accuracy. The loan and capitalised interest may be converted into shares in Orion’s holding company for PCZM (Agama), based on pre-money valuation of R1.2 billion for PCZM.
“Securing the IDC as a project partner at both of our Northern Cape project hubs – Prieska and Okiep – is a huge achievement by the Orion team. I would like to take this opportunity to thank the IDC for their support, which is pivotal to our efforts to unlock these high-quality base metal assets,” said Orion CEO and MD Errol Smart. The funding package also satisfies a key condition to the previously announced A$10 million Triple Flag early Funding Arrangement, bringing the combined pre-development funding to over R350 million (~A$32 million).
The trial mining phase and revised Bankable Feasibility Study is expected to be completed in Q3 2023, allowing project financing to supplement the US$80 million Triple Flag stream financing announced in May 2022.
