Orion Sets 3 Feb Closing for BEE Transaction, DFS Outcomes Due by March
Orion Minerals has completed critical Black Economic Empowerment transactions, unlocking the path to project financing for its Okiep Copper Project. Definitive Feasibility Studies for its flagship Flat Mines and Prieska Copper Zinc projects are in final review stages, promising stronger project metrics.
- Completion of BEE transactions for New Okiep Exploration and Mining Companies
- Closing date set for 3 February 2025, enabling financing phase
- Flat Mines Project DFS nearing completion and independent review
- Prieska Copper Zinc Mine DFS also advancing with partner approvals pending
- Additional expert input extended timelines but improved study robustness
BEE Transaction Completion Unlocks Financing
Orion Minerals Limited has reached a significant milestone with the fulfillment of all suspensive conditions related to its Black Economic Empowerment (BEE) transactions involving the New Okiep Exploration Company (NOE) and New Okiep Mining Company (NOM). This clearance, including approval from the South African Takeover Regulation Panel, sets the stage for the official closing on 3 February 2025. The completion of these transactions is pivotal, as it enables NOM to transition seamlessly into the project financing phase, a critical step for advancing the Okiep Copper Project (OCP).
Feasibility Studies Nearing Final Stages
Orion’s Definitive Feasibility Study (DFS) for the Flat Mines Project, the first mine slated for development at OCP, is approaching completion. Independent technical experts from Practara Metals and Mining Advisory have commenced their review, a rigorous process that underscores the company’s commitment to robust project evaluation. The DFS outcomes, expected to be released in February 2025, will be subject to partner approval, including key stakeholders such as the Industrial Development Corporation of South Africa Limited (IDC) and Landmark Capital.
Similarly, the DFS for the Prieska Copper Zinc Mine (PCZM) is progressing well, with Practara also conducting an independent review. Following this, the study will undergo partner scrutiny, including IDC, Prieska Resources, and Triple Flag Precious Metals Corp. The results are anticipated before the end of the March 2025 quarter. While the inclusion of additional experts and extended timelines have lengthened the study period, Orion’s management highlights that these measures have enhanced the quality and reliability of the project metrics.
Strategic and Socio-Economic Implications
Orion’s Managing Director and CEO, Errol Smart, emphasised the importance of the unconditional BEE transactions in facilitating the financing phase. He acknowledged the delays in the feasibility studies but expressed confidence that the thorough review process will yield stronger project fundamentals, aiding in securing debt, equity, and offtake funding.
From a socio-economic perspective, IDC’s interim CEO David Jarvis highlighted the projects’ alignment with South Africa’s Critical Minerals Game Plan. He noted the anticipated job creation and broader economic benefits for the Northern Cape province, reinforcing the projects’ strategic importance beyond pure commercial metrics.
Looking Ahead
With the BEE transaction completion and feasibility studies nearing approval, Orion Minerals is poised to advance its financing and development plans for two cornerstone projects. The coming months will be critical as the company releases DFS outcomes and moves toward securing the capital necessary to bring these mines into production.
Bottom Line?
Orion’s progress on BEE deals and feasibility studies sets a solid foundation, but timely financing and execution remain key hurdles ahead.
Questions in the middle?
- Will the DFS outcomes meet partner expectations to secure timely project financing?
- How will extended feasibility timelines impact Orion’s overall project schedule and costs?
- What are the specific funding structures Orion will pursue following DFS approvals?
