ASX- and JSE-listed Orion Minerals has raised A$3.6-million, or R44-million, through a share purchase plan (SPP) that closed on July 23.

Under the SPP, each eligible shareholder was entitled to apply for parcels of new shares from a minimum parcel of A$165, or R2 000, up to a maximum of A$30 000, or R365 000.

The offer was open to shareholders residing in Australia, New Zealand, South Africa, Germany, the Netherlands, Jersey, the UK, Mauritius and Singapore.

The SPP attracted strong support from shareholders in South Africa, where A$2.8-million, or R33.6-million, was raised.

The issue price of A$0.015, or R0.18, apiece, is the same price as that paid by investors under a recently completed placement, through which Orion raised A$7.7-million, or R92.3-million, which involved 513-million shares being issued to sophisticated and professional investors.

The combined $11.3-million proceeds of the fundraise and SPP will be used to develop the Prieska zinc and New Okiep copper mines, which are based in South Africa’s Northern Cape province.

The feasibility studies for both these projects are on track for completion in this quarter. Particularly, the bankable feasibility study (BFS) for the Okiep project will underpin project finance and mine development.

Orion still awaits the approval of Okiep’s water-use licence before the project is fully permitted and mine development can start.

Some key recent results from diamond drilling under way at Okiep, which was executed to support the feasibility study, include 49 m of copper grading 5.05%, 9.27 m of copper grading 3.01% and 20 m of copper grading 4.99%.

The Prieska project currently has a mineral resource of 31-million tonnes grading 1.2% copper and 3.6% zinc, containing 370 000 t of copper and 1.1-million tonnes of zinc.

One block of the project has been identified as an attractive early mining opportunity with high-grade sulphide mineralisation. Trial mining in this regard has demonstrated prospects for future development and ramp-up.

Orion chairperson Denis Waddel comments that the capital raisings have had a solid outcome, particularly considering the current volatile conditions in global markets.

“This further strengthens our treasury position and puts us in a strong position to complete and deliver the BFS’s on our two copper projects in South Africa next month while continuing drilling at Okiep.”

The shares under the SPP will be issued on July 30.

Investment company Utshalo founder and consultancy AmaranthCX CEO Paul Miller says the outcome of Orion’s SPP is a “narrative-changing” result, particularly the funds raised from South African investors for a junior mining company.

“It shows what is possible on the South African public markets,” he highlights.

Utshalo, which aims to “reawaken the country’s public markets”, has signed up more than 749 investors to its platform and makes a valuable contribution to the publicity and digital marketing of junior mining companies.