Orion Minerals Ltd. welcomed a new investor to its Prieska copper-zinc project in South Africa as part of the company's restructuring of its black empowerment equity.
Orion said Aug. 2 that it signed a memorandum of understanding granting Safika Resources (Pty) Ltd. an initial 44.72% stake in Prieska Resources, which owns 20% of the project. Kolobe Nala Investment Co. (Pty.) Ltd. and Black Star Minerals (Pty.) Ltd. will hold 37.97% and 17.31%, respectively.
Safika and Kolobe's ownership will be reduced to 39.75% and 33%, respectively, once Black Star exercises its right to increase its stake to 27.25%, subject to certain milestones.
In April, black South African investors agreed to participate in Orion's A$8 million share placement at 4 Australian cents apiece.
A bankable feasibility study on the project in June outlined a posttax net present value, discounted at 8%, of A$408 million and a 33% internal rate of return.