Orion Minerals Ltd. said Oct. 24 that it has received commitments from sophisticated and professional investors to raise about A$5.5 million through a placement of about 222 million shares at 2.5 Australian cents apiece.
The proceeds will be used to fund a bankable feasibility study, optimization studies, and early works for its flagship Prieska copper-zinc project in South Africa. The remainder is earmarked for exploration on the company's tenements in the Northern Cape of South Africa, and for working capital.
Tembo Capital Mining Fund II LP and its affiliated entities has confirmed to subscribe for A$2.5 million in the placement.
Meanwhile, Orion will also launch a share purchase plan wherein each eligible shareholder will be allowed to apply for parcels of new shares for a minimum of A$2,000 and maximum of A$30,000. The issue price will also be 2.5 cents per share, representing a 7.4% discount to the VWAP of Orion's shares during the five trading days prior to the announcement date.
The company is expected to raise A$2.0 million from the share purchase plan, with a maximum of 80 million shares to be issued.