Orion Issues 522M Shares at 1.1 Cents, Secures A$5.8M Plus Loan Conversions
Orion Minerals has raised approximately A$5.8 million through a share placement and loan conversions, while launching a Share Purchase Plan targeting an additional A$4 million to fund key copper projects.
- Raised ~A$5.8 million via placement of 522 million shares at 1.1 cents each
- Loan conversions from related parties Tarney Holdings and Ratel Growth included
- Share Purchase Plan offers existing shareholders up to A$30,000 at placement price
- Funds earmarked for Prieska Copper Zinc Mine development and Okiep Copper Project
- Shareholder approvals to be sought at upcoming General Meeting
Capital Raising Overview
Orion Minerals Limited (ASX/JSE, ORN) has announced a significant capital raising initiative aimed at advancing its copper mining projects in South Africa. The company will issue approximately 522 million new shares at a price of 1.1 cents each, raising around A$5.8 million. This placement includes firm commitments from sophisticated investors and the conversion of outstanding loans from key stakeholders.
Notably, Tarney Holdings, associated with Orion’s Chairman Denis Waddell, and Ratel Growth, linked to former director Thomas Borman, have agreed to convert their unsecured loans into shares at the placement price. This move not only strengthens Orion’s balance sheet but also signals continued confidence from its major shareholders.
Share Purchase Plan to Engage Existing Investors
In addition to the placement, Orion is launching a Share Purchase Plan (SPP) offering existing eligible shareholders the opportunity to purchase up to A$30,000 worth of shares at the same discounted price. The SPP aims to raise up to A$4 million and is designed to encourage shareholder participation without brokerage fees, providing a straightforward way for investors to increase their stake.
The SPP will open on 15 July 2025 and close on 5 August 2025, with shares expected to be issued and quoted shortly thereafter. This initiative reflects Orion’s commitment to maintaining strong shareholder engagement as it progresses towards production.
Funding Strategic Project Development
The funds raised will be primarily allocated to the development of the Upper section of the Prieska Copper Zinc Mine (PCZM), including ongoing dewatering and site preparation. Additionally, capital will support optimisation studies and site works at the Okiep Copper Project, another key asset in Orion’s portfolio. General working capital needs, including efforts to finalise off-take funding arrangements for PCZM, will also be covered.
Managing Director Anthony Lennox highlighted that this capital raising is a crucial step in transitioning Orion into a producing mining company. The participation of major shareholders in the placement underscores their confidence in the company’s strategic direction and project pipeline.
Next Steps and Shareholder Approvals
Orion will seek shareholder approval at a General Meeting scheduled for late August or early September 2025 to ratify the placement and approve the loan conversion shares. This approval is necessary to maintain flexibility for future equity fundraising activities. The placement is expected to complete around 14 July 2025, with the SPP following shortly after.
As Orion advances these funding initiatives, market participants will be watching closely to see how effectively the company executes its development plans and manages shareholder expectations amid ongoing capital requirements.
Bottom Line?
Orion’s latest capital raise sets the stage for critical project milestones, but shareholder approval and execution remain pivotal.
Questions in the middle?
- Will shareholder approval for loan conversions proceed smoothly at the General Meeting?
- How will the final amount raised under the Share Purchase Plan compare to the target A$4 million?
- What are the timelines and risks associated with the development of the Prieska Copper Zinc Mine following this funding?