Orion Minerals Secures A$5M to Propel Prieska and Okiep Projects Forward
Orion Minerals has raised A$5 million through a share placement to fund early development at its Prieska Copper Zinc Uppers mine and advance studies at the Okiep Copper Project, underpinning its transition towards production.
- A$5 million capital raise via placement of 333.33 million shares at 1.5 cents each
- Funds to support early works at Prieska Copper Zinc Uppers and optimisation at Okiep Copper Project
- Chairman Denis Waddell’s associated entity to subscribe for A$1 million, pending shareholder approval
- Placement underpins ongoing financing and offtake discussions with Glencore
- Transitioning from exploration to mine development and production phase
Capital Raise to Accelerate Development
Orion Minerals Limited has announced a successful capital raising of approximately A$5 million through a placement of 333.33 million new shares priced at 1.5 cents each. This injection of funds is designed to support the company’s advancing mining projects in South Africa, particularly the Prieska Copper Zinc Uppers mine and the Okiep Copper Project.
The placement attracted firm commitments from sophisticated and professional investors, including a significant A$1 million subscription from Tarney Holdings Pty Ltd, an entity associated with Orion’s Chairman, Denis Waddell. This portion of the placement is subject to shareholder approval, expected at the company’s upcoming Annual General Meeting.
Strategic Use of Funds
Orion plans to apply the capital primarily to continue early works at the Prieska Copper Zinc Uppers mine, focusing on dewatering and site preparation while finalising project funding. Concurrently, the company will advance optimisation studies and ongoing site works at the Okiep Copper Project, a key asset in its portfolio.
Additionally, the funds will support general working capital needs, including activities related to securing offtake agreements and financing arrangements for the development of both the Prieska Uppers and Deeps mining stages. These steps are critical as Orion moves from exploration and study phases towards mine development and eventual production.
Progressing Financing and Offtake Agreements
This capital raise comes on the back of a non-binding term sheet signed in mid-September with a wholly owned subsidiary of Glencore plc, outlining potential financing of between US$200 million and US$250 million and concentrate offtake arrangements for the Prieska project. The placement funds will help bridge the gap as Orion works to convert this term sheet into a binding agreement.
Managing Director and CEO Tony Lennox highlighted the importance of this capital raising in supporting the company’s strategic transition. He emphasised the strong backing from major shareholders and the South African market, which bodes well for Orion’s ambitions to become a mine developer and producer.
Looking Ahead
The placement is expected to complete around mid-October 2025, with the Chairman’s participation pending shareholder approval later in November. As Orion advances its projects and finalises financing, the market will be watching closely for updates on the Glencore agreement and operational milestones at Prieska and Okiep.
Bottom Line?
Orion’s latest capital raise marks a pivotal step towards unlocking value from its South African copper-zinc assets, but key financing and operational milestones remain to be achieved.
Questions in the middle?
- Will Orion secure a binding financing and offtake agreement with Glencore as planned?
- How will the shareholder vote impact the Chairman’s participation in the placement?
- What are the timelines for transitioning from early works to full-scale production at Prieska and Okiep?
