Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that it has secured firm commitments for a Placement of new fully paid ordinary shares (Shares) to sophisticated and professional investors to raise A$7.7 million (ZAR92.3 million) (Placement).
Approximately 513 million Shares will be issued under the Placement, at an issue price of 1.5 cents per Share (ZAR18 cents)1. The Company also intends to offer a Share Purchase Plan (SPP) to existing eligible shareholders, providing existing eligible shareholders with an opportunity to purchase up to A$30,000 of Shares at the same offer price as the Shares issued under the Placement. The combined proceeds of the Placement and SPP, together with other funding sources, will enable the Company to progress the activities set out below in the Use of Funds section, while securing the development finance for the Prieska Copper Zinc Mine and the New Okiep Mines, being the Company's two key copper mine development projects.
Orion's Managing Director and CEO, Errol Smart, commented: 'With our two Bankable Feasibility Studies for Prieska Copper Zinc and Okiep Mines now imminent, and ongoing drilling recently delivering very impressive copper intersections at Okiep, this capital raise allows work to continue on preparation for commercial mining and on exploration, while the optimum debt funding arrangements are negotiated with funding institutions. 'We are particularly pleased to be able to offer an SPP, which allows our exceptionally strong retail shareholding, that now has more than 22 thousand individual holders, the opportunity to acquire Shares at the same price to that offered to larger professional institutional investors under the Placement.'
Placement Details
The Placement to sophisticated and professional investors, which is being conducted pursuant to Section 708A of the Australian Corporations Act 2001 (Cth), comprises the issue of approximately 513 million Shares at an issue price of 1.5 cents (ZAR18 cents) per Share. The issue of these Shares falls within Orion's 15% capacity for issues of equity securities without shareholder approval afforded by ASX Listing Rule 7.1. The Placement is expected to be completed on or around 16 July 2024. Orion has been supported in South Africa by a local advisor and Orion has agreed to pay a fee to the local advisor of 5% of the proceeds raised in the Placement from certain South African resident investors.
Share Purchase Plan In addition to the Placement, Orion is pleased to announce a SPP to provide existing eligible shareholders an opportunity to increase their shareholding and subscribe for up to A$30,000 worth of Shares in the Company at the same offer price as the Shares issued under the Placement. The SPP is being conducted under an Australian regulation which allows Eligible Shareholders the opportunity to subscribe for Shares up to a maximum of A$30,000, irrespective of current shareholdings. The Company is offering existing eligible shareholders being those shareholders with a registered address in Australia, New Zealand, South Africa, the European Union (Germany and Netherlands), Jersey (Channel Islands), United Kingdom, Mauritius and Singapore that held Orion shares as at 7.00pm (Melbourne time) on 28 June 2024 (Record Date) (Eligible Shareholders) the opportunity to purchase Shares under the SPP. The application for SPP shares will be capped at the statutory maximum of A$30,000 per Eligible Shareholder, across all holdings. The Company is seeking to raise up to A$5 million (or ZAR60 million) under the SPP, however the Board reserves the right to determine the final amount raised under the SPP and may accept oversubscriptions or scale back any application at Board's discretion.
Contact:
Tel: +61 (0) 3 8080 7170
This release may include forward-looking statements. Such forward-looking statements may include, among other things, statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Orion. Actual results and developments may vary materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Orion makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release. All information in respect of Exploration Results and other technical information should be read in conjunction with Competent Person Statements in this release (where applicable). To the maximum extent permitted by law, Orion and any of its related bodies corporate and affiliates and their officers, employees, agents, associates and advisers:
ORION MINERALS LIMITED 
