Wrap Text
All Conditions Satisfied for Orion to Complete First Closing of Acquisition of High-Potential Okiep Copper Project
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
All Conditions Satisfied for Orion to Complete First Closing of Acquisition of High-Potential Okiep
Copper Project
All conditions satisfied, with first closing of the transaction expected to occur on 7 May 2024
- Key approvals received from strategic funding partner, the Industrial Development Corporation of
South Africa Ltd (IDC), and all regulatory approvals met.
- Orion now able to proceed to completion of the acquisition of a controlling interest in the Okiep
Copper Project (OCP) in the Northern Cape Province, South Africa.
- IDC approves ZAR43.75 million (~A$3.6 million) of additional funding to fund its proportional share of
ongoing drilling and operating costs at the OCP.
- The OCP is a highly strategic asset, located within a prolific copper producing district that historically
produced over 2 million tonnes of contained metal.
- The Okiep district is currently undergoing a major revival against the backdrop of surging copper
prices.
- An 11-hole, 5,800m confirmation drilling program is ongoing across the Flat Mines East, Flat Mine South
and Flat Mine North deposits with further assays expected in May 2024.
- The confirmation drilling program continues following the outstanding results reported recently from
the first hole, which returned a spectacular intercept of: drill hole OFMED153: 49m @ 4.89% Cu from
231m down-hole, including 10.23m at 12.47% Cu.
Orion's Managing Director and CEO, Errol Smart, commented:
"We are very pleased to have reached the final stages in our acquisition of a controlling interest in the Okiep
Copper Project, which is a high-quality asset that forms an integral part of Orion's growth pathway to become
a significant new mid-tier ASX/JSE listed copper producer.
"Orion's 641km2 package of mineral rights holdings in the Okiep copper district represents a highly strategic
asset, located in the heart of a rich historic mining camp that produced over 2 million tonnes of contained
copper under previous ownership including Newmont and Goldfields.
"This district is in the early phases of an exciting new chapter in its history, with a huge opportunity to meet
surging global demand for copper metal from the EV and AI-driven revolutions that are currently transforming
the global economy.
"Building on the momentum generated by our superb recent drilling intercepts, we have an ongoing drill
program with more assays expected in the coming weeks, and a feasibility study well advanced and on track
for delivery in July this year. Given the major activity at the Okiep Copper Project, we are looking forward to
delivering significant news-flow from Okiep in the coming months."
Orion Minerals Ltd (ASX/JSE: ORN) (Orion or the Company) is pleased to advise that it has taken another key
step in its strategy to become a leading diversified international base metals producer as it reaches the final
stages of its acquisition of a controlling interest in the Okiep Copper Project (OCP), located approximately
570km north of Cape Town in the Northern Cape Province of South Africa.
Following its ASX/JSE announcement on 17 April 2024, Orion is pleased to advise that:
• The Industrial Development Corporation of South Africa Ltd (IDC), which is a strategic funding partner
in the OCP, has now obtained its internal approvals and counter-signed the addenda to the
agreements pursuant to which Orion will acquire the controlling interest in the OCP; and
• All the supplementary conditions to implement the first phase of the Okiep transaction have been
fulfilled (including receipt of the relevant approvals from the Foreign Surveillance Department of the
South African Reserve Bank and the South African Takeover Regulation Panel) and the Okiep
transaction agreements (as amended) have accordingly become unconditional.
Following on from the above developments, Orion anticipates completing the first phase of the Okiep
transaction on or about Tuesday, 7 May 2024 with payment of ZAR46 million (~A$3.8 million1), being ZAR11
million payable in cash and ZAR35 million settled by way of Orion issuing fully paid ordinary shares (Shares)
(refer ASX/JSE release 23 April 2024).
As set out in the ASX/JSE announcement by Orion on 23 April 2024, Orion will seek shareholder approval at a
General Meeting of shareholders, to be held on Thursday 23 May 2024 to seek approval for, amongst other
things, the ratification of the agreement to issue the consideration Shares.
Next Steps
IDC approval has been received for ZAR43.75 million (~A$3.6 million) funding for its proportional share of
drilling and operating costs for the New Okiep Mining Flat Mines Project.
A diamond drilling program commenced in the Flat Mines area of the OCP in February 2024. A total of eleven
diamond core drill holes have been planned at Flat Mine East (FME), Flat Mine South (FMS) and Flat Mine North
(FMN) comprising a total of 5,800m.
The program has been designed to confirm historical drilling information and resultant interpretations, provide
geotechnical information, and provide additional drill core for confirmatory metallurgical test work.
The planned program comprises five holes at FME, four holes at FMS and two holes at FMN. All holes include
a deflection (or wedge) through the mineralisation to provide the additional drill core for confirmatory
metallurgical test work.
Assay results from the first two completed holes at FME were reported on 22 April 2024, including the high-
quality intercept in drill hole OFMED153 which returned 49.00m at 4.89% Cu from 231.00m to 280.00m, including
10.23m at 12.47% Cu.
Drilling is progressing well, with the next batch of assay results from this ongoing drill program expected during
May 2024.
Completion of the Flat Mines Feasibility study is on schedule for completion in July 2024.
1 Based on the AUD:ZAR exchange rate of 12.16 as at 3 May 2024.
For and on behalf of the Board.
Errol Smart
Managing Director and CEO
6 May 2024
ENQUIRIES
Investors Media JSE Sponsor
Errol Smart – Managing Director & CEO Nicholas Read Monique Martinez
Denis Waddell – Chairman Read Corporate, Australia Merchantec Capital
T: +61 (0) 3 8080 7170 T: +61 (0) 419 929 046 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: nicholas@readcorporate.com.au E: monique.martinez@merchantec.com
Disclaimer
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:
• disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change
in expectations or assumptions;
• do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of
the information in this release, or likelihood of fulfilment of any forward-looking statement or any event or results
expressed or implied in any forward-looking statement; and
• disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for
negligence).
Date: 06-05-2024 08:39:00
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