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ORION MINERALS LIMITED - Orion Minerals Concludes an Agreement to Further Strengthen its Bee Partnership - Introduction of Safika Resources

Release Date: 02/08/2019 08:08
Code(s): ORN     PDF:  
 
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Orion Minerals Concludes an Agreement to Further Strengthen its Bee Partnership - Introduction of Safika Resources

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”)

ORION MINERALS CONCLUDES AN AGREEMENT TO FURTHER STRENGTHEN ITS BEE PARTNERSHIP
Introduction of Safika Resources as a key BEE partner in Prieska Resources

Safika Resources to become a key member of Orion’s BEE partner company Prieska Resources.

Safika Resources is a successful BEE mining and exploration company operating in South Africa’s
Northern Cape since 2006.

Safika’s addition further strengthens the existing BEE partnerships within Prieska Resources.

Demonstrates Orion’s commitment to further broadening its BEE and beneficiary base.

Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that it has further
strengthened its black economic empowerment (BEE) partnership in Prieska Resources, by welcoming Safika
Resources on board as a key partner.

Further to the announcement of a ground-breaking BEE transaction on 14 April 2019, Orion and the founding
members of Prieska Resources, its BEE company, have concluded an MOU to include Safika Resources in its BEE
shareholding.

Prieska Resources will ultimately hold a 20% stake in the Prieska Copper-Zinc Project, while Prieska Resources’
shareholding will initially be made up of Safika Resources, Black Star and the Kolobe Nala Investment Company
as follows:

BEE Partner                                         Ownership of the              Principals
                                                    Prieska Resources
Safika Resources (Safika)                                 44.72%                  Saki Macozoma
                                                                                  Moss Ngoasheng
                                                                                  Justin Pitt

Black Star Minerals (Pty) Ltd (Black Star)                17.31%                  Jowell Tobias
                                                                                  Sharon Matthews
                                                                                  Johanna Tobias

Kolobe Nala Investment Company (Pty) Ltd (KNI)            37.97%                  Billy Mawasha

Black Star, who led the initiative to broaden the BEE participation and together with Orion formed the alliance
with Safika Resources, has the right (subject to the meeting of specified milestones being delivered) to increase its
holding in Prieska Resources so that the final holding would be as follows:

BEE Partner                                         Ownership of the              Principals
                                                    Prieska Resources
Safika                                                    39.75%                  Saki Macozoma
                                                                                  Moss Ngoasheng
                                                                                  Justin Pitt

Black Star                                                27.25%                  Jowell Tobias
                                                                                  Sharon Matthews
                                                                                  Johanna Tobias

KNI                                                       33.00%                  Billy Mawasha


About Safika Resources

Safika Resources is predominantly invested in manganese through its investment in and management of
Ntsimbintle Holdings, which owns an effective 37% stake in Tshipi é Ntle Manganese Mining. Tshipi é Ntle
Manganese Mining, in partnership with Australia’s Jupiter Mines (ASX/JSE: JMS), mines Tshipi Borwa, an open-pit
manganese mine situated in South Africa’s Northern Cape Province.

Tshipi Borwa, came into production in 2012 and currently produces in excess of three million tonnes of manganese
per year achieving South Africa’s largest manganese ore exports in 2018. Ntsimbintle Holdings also holds a 9%
stake in Hotazel Manganese Mine and an extensive portfolio of prospecting rights and strategic partnership
investments.

In addition to its extensive operational experience, Safika and its subsidiaries have exemplary community relations
and through its support of community structures has touched the lives of thousands. Safika has demonstrated real
transformation by honouring communities hosting their mining operations.

Orion’s Managing Director and CEO, Errol Smart, commented:

“We are delighted to welcome Safika as a partner in our Northern Cape mining ventures. To us, Safika represents
an ideal business partner in the Northern Cape. As a majority black owned business that founded an extremely
successful mining operation by taking it from a grassroots beginnings by securing undeveloped Prospecting Rights,
to now holding one of the largest interests in, and management of, one of South Africa’s most successful mining
ventures and one of the world’s top manganese producers, is a tremendous badge of success. Safika’s success
demonstrates the potential for successful exploration and mining in the Northern Cape.

What has impressed us most is Safika’s ethical approach to business and its extremely strong commitment to the
community and stakeholders, which matches our own aspirations as we move to developing Prieska as a Tier 1
base metal producer and unlocking value from our large exploration holdings.”

Safika Chairman, Saki Macozoma, commented:

“This transaction with Orion sees us further entrench our position with fellow Northern Cape shareholders to diversify
into Copper and Zinc in the near term. We look forward to replicating our success in manganese achieved in the
Tshipi é Ntle, Tshipi Borwa mine that broke ground in Q4 2011 and was the largest manganese ore exporter from
South Africa in 2018. The development of the Prieska mine should be another material boost to the Northern Cape
economy.”

Errol Smart
Managing Director and CEO

2 August 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
                                                                                                                                3
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).




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Date: 02/08/2019 08:08:00
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