Orion Minerals said it has secured firm commitments for a two-tranche share placement to raise approximately $8.8 million as part of a broader strategic funding package that will result in the introduction of a new cornerstone investor group and provide the company with an exceptional springboard to accelerate the development of both of its key base metal production hubs in South Africa’s Northern Cape Province.
Clover Alloys (SA), a privately owned South African mining group, which has experience developing and operating chrome operations, is to cornerstone the placement by subscribing for 440 million shares for $4.5 million. Clover Alloys is led by mining executives Adam Fleming, chairman, and Philip Kotze, CEO, both of whom have a history of value creation in the South African mining industry. Clover’s expertise in the rapid and highly capital efficient development of modular processing plants in South Africa will be of enormous strategic value to Orion.
The placement is also being strongly supported by existing long-term shareholders Delphi Group, Tembo Capital, and others, who are collectively subscribing for $1.8 million. It is subject to shareholder and regulatory approval.
The capital raise will also put Orion in a strong position to access the recently announced $87 million funding package from Triple Flag Precious Metals and the $13.8 million funding facility secured from the Industrial Development Corp. to underpin the development of Prieska.
