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Independence Group to become a Substantial Shareholder in Orion through a $5.0M Placement
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”)
INDEPENDENCE GROUP TO BECOME A SUBSTANTIAL SHAREHOLDER IN ORION THROUGH A
$5.0M PLACEMENT TO ADVANCE SOUTH AFRICAN PROJECTS
- Leading mid-tier miner, Independence Group NL (ASX: IGO) will become a substantial shareholder in
Orion via a $5.0M share placement at 5 cents per Share.
- IGO secures preferential rights to joint venture or purchase Orion’s nickel projects in the highly
prospective Areachap Belt located in the Northern Cape, South Africa.
- Collaborative working relationship formed between Orion and IGO to enhance Orion’s planned
regional exploration programs within the Areachap Belt.
- The proceeds of the Placement, and the new relationship with IGO, will underpin Orion’s strategy to
fast-track the redevelopment of its flagship Prieska Zinc-Copper Project in South Africa and progress
its highly prospective regional Nickel-Copper-Cobalt and Zinc-Copper exploration projects within the
Areachap Belt.
Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to announce that it has taken another
important step in its base metal development strategy in South Africa after entering into an agreement with
IGO, that will see the leading mid-tier miner and explorer becoming a substantial shareholder in Orion and
cementing a collaborative working relationship between the two companies.
Orion has entered into an agreement with IGO, for IGO to subscribe for a placement of ordinary shares (Share)
in Orion at 5.0 cents per Share, to raise $5.0M (Placement). The agreement also sets out the terms of an
agreed collaborative working relationship between the two parties, whereby IGO has secured matching rights
to any potential joint venture or sale of Orion’s nickel projects located in the Areachap Belt, South Africa. If
Orion wishes to assign the whole or any part of its right, title or interest in any of its South African Nickel
Projects (located within a defined area of the Areachap Belt) to a third party, it must first offer to assign such
interest to IGO on the same terms and conditions as the proposed terms and conditions of the assignment to
the third party.
IGO’s preferential rights include the Company’s advanced Jacomynspan Nickel-Copper-Cobalt Project, where
the Company has announced a JORC compliant Mineral Resource estimate (refer ASX release 8 March 2018).
The collaborative working relationship formed between Orion and IGO will also enhance Orion’s planned
regional exploration programs within the highly prospective yet very much under explored Areachap Belt.
Due to the lack of favourable environments world-wide which have the potential to host major new Nickel-
Copper-Cobalt and VMS discoveries, Orion’s large ground holdings in the Northern Cape of South Africa
provides both Orion and IGO significant exposure to exploration success.
Based on regional exploration programs already completed, Orion has identified the potential for discovery of
nickel hosting massive sulphide bodies similar to IGO’s Nova Bollinger Mine in the Fraser Range, Western
Australia in the Areachap Belt (refer ASX releases dated 14 July 2016 and 8 March 2018). Orion intends to
commit a minimum amount equivalent to 30% of the $5M Placement to IGO (being $1.5M) towards its Nickel-
Copper-Cobalt exploration targets.
The Placement and IGO’s preferential rights further strengthen the existing relationship between Orion and
IGO, following the Company’s announcement on 10 March 2017 that Orion and IGO had entered into a joint
venture agreement on the Fraser Range Nickel-Copper Project, Western Australia and that IGO had
subscribed for a $1.3M share placement in Orion. The additional $5M share placement by IGO in Orion
increases IGO’s shareholding in Orion from 4.2% to 11.1%.
The agreement with IGO is consistent with Orion’s strategy to fast-track it flagship Prieska Zinc-Copper Project
and progress its highly prospective regional exploration projects located within the Areachap Belt, South Africa.
Orion’s Managing Director and CEO, Errol Smart, commented:
“We are very pleased to cement a relationship with a strategic investor with the qualities of IGO.
IGO’s Nova Bollinger Nickel and Jaguar Zinc-Copper mining operations in Western Australia have remarkable
geological and engineering similarities to Orion’s advanced stage projects in the Areachap Belt in South Africa.
In addition, the exploration models and methods that Orion has employed in the Areachap Belt are very similar
to those being used by IGO in a similar geological terrain in the Fraser Range, Western Australia. Clearly,
there are strong synergies between the companies and a meeting of minds between our technical teams.”
Errol Smart
Managing Director and CEO
18 May 2018
ENQUIRIES
Investors JSE Sponsor
Errol Smart – Managing Director & CEO Rick Irving
Denis Waddell – Chairman Merchantec Capital
T: +61 (0) 3 8080 7170 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: rick@merchantec.co.za
Media
Michael Vaughan Barnaby Hayward
Fivemark Partners, Australia Tavistock, UK
T: +61 (0) 422 602 720 T: +44 (0) 207 920 3150
E: michael.vaughan@fivemark.com.au E: orion@tavistock.co.uk
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: 18/05/2018 08:59:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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