Orion Minerals Raises A$3.6m with Majority Backing from South African Market
In a major financial boost, Orion Minerals announced today that it has successfully raised A$3.6m (R44m) through a share purchase plan, with a majority of the funds coming from South African investors. Local backers contributed A$2.8m or R33.6m, showcasing the positive standing of the mining company in the local community.
Orion chairman Dennis Waddell praised the result as “a great outcome” and attributed the success to Utshalo’s user-friendly digital channels that facilitated access for South African investors. The capital raise is a significant achievement for a junior mining company, particularly in a challenging retail market environment.
The total amount raised in recent capital raisings now stands at $11.3m, with earlier placements totaling A$7.7m from sophisticated and corporate investors. These funds will be used to finance bankable feasibility studies for Orion’s Prieska Copper Zinc Mine (PCZM) and Okiep Copper Project (OCP) in South Africa’s mineral-rich Northern Cape province.
Orion’s Managing Director and CEO, Errol Smart, emphasized the importance of being fully financed to drive the company’s share price to reflect its true value. Despite facing market challenges, Orion’s shares have shown a 12% increase this year, with long-term growth potential fueled by the rise in copper prices.
With plans for rapid production at Prieska and Okiep once funded, Orion aims to establish a 12-year mine at PCZM and initiate pilot phase production at OCP, as detailed on their website. The successful capital raise positions Orion for future growth and development as it continues to drive its projects towards production.
