Wrap Text
Community and Employee Trusts Registered to Establish Mining Charter Complaint Ownership Structure
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
(“Orion” or “the Company”)
COMMUNITY AND EMPLOYEE TRUSTS REGISTERED TO ESTABLISH MINING CHARTER COMPLIANT
OWNERSHIP STRUCTURE FOR PRIESKA PROJECT
- Community Trust and Employee Trust registered by the Master of The High Court, with
each to become 5% beneficial owners of the Prieska Project.
- The Community Trust will be administered by a board of trustees comprising
independent professional trustees, elected community representatives and an Orion
representative.
- The Community Trust will be advised by a Stakeholder Engagement Forum, with
elected community representatives.
- Equity ownership costs for the Community Trust and Employee Trust will be carried by
Orion and recovered from future project cash-flows.
- The Trusts will complement the 20% full contributing equity ownership in the Prieska
Project, held by Black Economic Empowerment (BEE) Entrepreneurs.
Orion’s Managing Director, Errol Smart commented:
“While the 2018 Mining Charter allows Orion five years to establish community and employee ownership
structures, our wish is to forge a strong relationship with our community and employees right at the outset
and engage meaningfully with these key stakeholders as equity partners with full voting rights. This has
motivated the establishment of fully compliant ownership structures well in advance of the legal
requirements.
We recognise the challenges in South Africa with establishing and operating these trusts and ensuring a
transparent governance framework that ensures that no faction of the community can misappropriate
and misdirect the share in future Mine profits. We have engaged with top legal and commercial advisors
to ensure that independent, external trustees have an oversight role and ensure that no trustee or
element of the community gets preferential treatment. We also want to ensure that the earnings of the
trust are maximised for maximum sustainable impact within the community and to benefit the most
vulnerable of its historically disadvantaged members.”
Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce the achievement
of another significant milestone at its flagship Prieska Project in South Africa’s Northern Cape Province,
with the registration of the Community and Employee Trusts for the Project paving the way for it to
achieve full compliance with the 2018 Mining Charter, well in advance of Orion’s legal requirement to
do so.
The Master of The High Court confirmed the registration on 29 May 2019 of both a Community Trust and
Employee Trust (Trusts) as vehicles for community and employee ownership structures at Prieska.
At no cost to the beneficiaries, the Trusts will each become 5% equity owners in the mine, which is
planned to be developed at the Prieska Project, following completion of the Bankable Feasibility Study
(BFS) to be delivered this month (Mine). The equity ownership costs and contributions on behalf of these
Trusts, will be recovered from future cash-flows of the Mine.
The shares to be issued to these Trusts will be non-transferable, thereby protecting the Trust beneficiaries
from any risk of being disowned.
The community and employees will therefore always each be the beneficiaries of 5% of future dividends
remitted by the company that owns the Mine (Orion’s subsidiary), to its shareholders. The community
and employees will also have full proportionate shareholder voting rights in the affairs of the company
that owns the Mine.
The Community Trust will be administered by a board of trustees comprising independent professional
trustees, elected community representatives and an Orion single company representative, and will be
advised by a Stakeholder Engagement Forum.
Establishment of Stakeholder Engagement Forum
Orion has committed to the establishment and maintenance of a Stakeholder Engagement Forum, that
will ensure that the interests of the community and other stakeholders are tabled and considered in the
business affairs of the Company and the Mine. The Forum will also provide a structured channel for
continued communication of Mine / Project progress by Mine management.
The composition of the Forum is as follows:
- 10 Community Members;
- 4 Representatives of Local Authorities (Municipality, Police, Department of Social Development);
- 2 Representatives of Shareholders;
- 2 Employees; and
- 2 Representatives of Orion Management.
Orion has completed a four-month process of community engagement, which included holding six well-
attended public meetings in all the residential areas of the Siyathemba Municipality. This has culminated
in the election of the 10 community members on the Forum, who will represent interests selected by the
community as being of significant local importance, namely: Education, Social Development,
Unemployed, Skilled Elders, Sports & Recreation, Safety & Security, Religious Groups and Business.
The Forum will provide a means by which the views and interests of the various community and
stakeholder groups are tabled in an open and participative manner, for the Forum to assess and
advise the Company, such that mine management and local authority structures can optimise
the positive impacts of the mine on its host community.
In addition, the Forum will assist the Community Trustees and advise on appropriate projects for
distribution of future dividend earnings of the trust.
Errol Smart
Managing Director and CEO
3 June 2019
ENQUIRIES
Investors Media JSE Sponsor
Errol Smart – Managing Nicholas Read Barnaby Hayward Rick Irving
Director & CEO
Denis Waddell – Chairman Read Corporate, Australia Tavistock, UK Merchantec Capital
T: +61 (0) 3 8080 7170 T: +61 (0) 419 929 046 T: +44 (0) 787 955 1355 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: nicholas@readcorporate.com.au E: orion@tavistock.co.uk E: rick@merchantec.co.za
Suite 617, 530 Little Collins Street
Melbourne, VIC, 3000
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: 03/06/2019 02:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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