Orion Minerals NL said May 31 that private equity group Tembo Capital will become a cornerstone shareholder and inject A$3 million to fast-track the redevelopment of the historic Prieska zinc-copper mine in South Africa.

The company will issue 125 million shares at a price of 2.4 cents each, giving Tembo a 12.5% stake.

As part of the deal, Orion also granted an anti-dilution right for Tembo to maintain its stake and the right to appoint a nonexecutive director.

Orion may also seek an additional share placement of up to 75 million shares to sophisticated and professional investors at a price of 2.4 cents each, bringing the total amount raised to A$4.8 million.

The cornerstone investment agreement followed an initial A$3 million investment through a convertible notes issue in March.