Wrap Text
Orion consolidates ownership of highly prospective Jacomynspan Nickel-Copper-PGE Project, South Africa
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 consolidates ownership of highly prospective Jacomynspan Nickel-Copper-PGE Project, South Africa
Key Points:
Orion enters agreement to acquire the remaining minority vendor interest in the Jacomynspan Project,
located 65km north of its flagship Prieska Copper-Zinc Project. As a result, Orion will become 70% owner
with Orion’s BEE partners, staff and employee trusts to hold an aggregate 30% interest in compliance with
Mining Charter III.
The Jacomynspan Intrusive Complex has important characteristics in common with major global nickel-
copper occurrences such as Voisey’s Bay, Kabanga and Nova-Bollinger.
An airborne electromagnetic (EM) and magnetic survey, with follow-up ground truthing, has identified
several high-priority targets for follow up work.
The geophysical targets are centred around a maiden JORC Mineral Resource of 6.8Mt containing 39,480
tonnes of Ni, 22,800 tonnes of Cu and 1,800 tonnes of Co at a 0.4% Ni cut-off with grades of 0.57% Ni, 0.33%
Cu and 0.30% Co, drilled between 1971 and 2012.
Orion’s Managing Director and CEO, Errol Smart, commented:
“This is a well-timed deal that simplifies the ownership and management structure of the Jacomynspan Project
against the backdrop of surging global nickel, copper, PGE and zinc prices and a resurgence of global investor
interest in exploration for these commodities.
“Through this transaction, we also welcome our Namaqua and Disawell joint venture partners as Orion
shareholders, giving them exposure to our world-class exploration and development portfolio including the Prieska
Copper-Zinc Project, for which we recently published an updated BFS demonstrating a compelling investment
case. The Areachap Belt in the Namaqualand region of the Northern Cape, where Orion holds over 3,200km 2 of
Prospecting and Mining Rights, is superbly placed to become the focus of base metal exploration in South Africa.”
Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that it has entered into an
agreement whereby Orion (or its nominated subsidiary) will acquire the remaining minority interests in the
Jacomynspan Nickel-Copper-PGE Project (South Africa) (Jacomynspan Project) held by two companies,
Namaqua Nickel Mining (Pty) Ltd (Namaqua) and Disawell (Pty) Ltd (Disawell) (Agreement).
In September 2017, Orion entered into a binding earn-in agreement to acquire the earn-in rights over the
Jacomynspan Project held by Namaqua and Disawell.
Orion’s earn-in is held via its wholly-owned subsidiary company, Areachap Investments 3 S.À R.L, and its South
African subsidiary company, Area Metals Holdings No 3 (Pty) Ltd (AMH3).
Since finalising the earn-in agreement, AMH3 has advanced exploration programs on the Jacomynspan Project,
with expenditure held in a shareholder loan account and AMH3 having reached an earn-in right stage, which will
see its shareholding increase by a further 25% interest (increasing its total interest to 50%) and, upon receipt of
regulatory approval, AMH3 being issued with the additional shares earned. Orion is the manager and operator of
the joint venture.
The key terms of the Sale Agreement are:
• Sale
o Orion will acquire all of the:
Remaining issued shares in Namaqua and Disawell held by the Namaqua and Disawell minority
shareholders (Selling Shareholders); and
Claims of any nature which any of the Selling Shareholders may have against either Namaqua
and/or Disawell, including (without limitation) the Shareholders’ loans held by each Selling
Shareholder and the founders’ royalty held by each founding Shareholder,
(collectively, Sale Equity).
• Purchase Price
o The purchase price payable by Orion to the Selling Shareholders for the Sale Equity will be a total
amount of $0.75M (Purchase Price);
o The Purchase Price will be settled by way of Orion issuing its ordinary shares (Shares) to each Selling
Shareholder (Consideration Shares), where:
The Purchase Price will be converted into South African Rand (ZAR) at the average ZAR/AUD
exchange rate in the 30 days prior to the date on which the last of the Suspensive Conditions (refer
below) is fulfilled (Fulfilment Date); and
The issue price of the Consideration Shares will be equal to the 30-day volume weighted average
price of the Orion Shares traded on the Johannesburg Stock Exchange as at the Fulfilment Date.
o The Consideration Shares will be issued by Orion to the Selling Shareholders within 10 business days after
the Fulfilment Date (Closing Date) against the transfer of the Sale Equity to Orion.
• Suspensive Conditions
o Orion and the Selling Shareholders (Sale Parties) entering into comprehensive formal written
agreement/s incorporating the principal terms and conditions set out in the Offer Letter and such other
terms and conditions as are usual for a transaction of this nature (Sale Agreement);
o Approval and/or ratification of the Sale Agreement and the implementation of the proposed
transaction by the board of directors or trustees (if and where applicable) of each the Sale Parties;
o Approval, where required, from Orion’s shareholders for the proposed transaction;
o Receipt of any and all regulatory approvals (on terms reasonably acceptable to the Sale Parties) as
may be required for the purposes of implementing the proposed transaction; and
o There being no material adverse change in the business, operations, assets, compliance, position
(financial, trading or otherwise) or prospects of either Namaqua or Disawell between the date of
signature of the Sale Agreement and the Closing Date.
• Such other suspensive conditions, undertakings, warranties and terms and conditions as would be standard
and customary to include in transactions of this nature.
About the Jacomynspan Project
The Jacomynspan Project, located on the Namaqua and Disawell mining and prospecting rights, contains a
significant intrusive-hosted, sulphide Ni-Cu-PGE Mineral Resource. Importantly, the Mineral Resource remains open
along strike and down-dip, presenting a compelling exploration opportunity.
Figure 1: Simplified geological maps showing the locality of the Jacomynspan Ni – Cu deposit in the Areachap Belt.
Indicated Mineral Resource for the Jacomynspan Project at various Ni cut-off grades
Ni Cu Co Pt Pd Au
Cut off Grade Metal Grad Metal Grade Metal Grade Metal Grade Metal Grade Metal
% Ni Volume (m3) Tonnes (%) Tonnes e (%) Tonnes (%) Tonnes (g/t) Ounces (g/t) Ounces (g/t) Ounces
0.20 11 252 000 33 000 000 0.26 86 000 0.18 58 000 0.02 6 000 0.10 101 000 0.05 53 000 0.04 44 000
0.25 4 205 000 12 393 000 0.32 40 000 0.20 25 000 0.02 3 000 0.11 45 000 0.06 25 000 0.05 19 000
0.30 1 501 000 4 461 000 0.42 19 000 0.24 11 000 0.02 1 000 0.14 20 000 0.08 12 000 0.05 8 000
0.40 584 000 1 780 000 0.55 10 000 0.29 5 000 0.03 1 000 0.17 10 000 0.11 6 000 0.07 4 000
0.50 284 000 872 000 0.66 6 000 0.37 3 000 0.04 300 0.16 5 000 0.11 3 000 0.07 2 000
Inferred Mineral Resource for the Jacomynspan Project at various Ni cut-off grades
Ni Cu Co Pt Pd Au
Cut off Grade Metal Grad Metal Grade Metal Grade Metal Grade Metal Grade Metal
% Ni Volume (m3) Tonnes (%) Tonnes e (%) Tonnes (%) Tonnes (g/t) Ounces (g/t) Ounces (g/t) Ounces
0.20 11 022 000 32 304 000 0.29 94 000 0.20 63 000 0.02 6 000 0.10 108 000 0.06 60 000 0.04 44 000
0.25 3 974 000 11 863 000 0.42 49 000 0.26 31 000 0.02 2 000 0.15 55 000 0.09 34 000 0.05 20 000
0.30 2 303 000 7 008 000 0.52 36 000 0.31 22 000 0.02 2 000 0.19 42 000 0.12 27 000 0.06 14 000
0.40 1 647 000 5 056 000 0.58 29 000 0.35 18 000 0.03 1 000 0.19 31 000 0.13 21 000 0.07 11 000
0.50 982 000 3 041 000 0.67 20 000 0.41 13 000 0.03 1 000 0.17 16 000 0.12 11 0003 000 0.07 7 000
Table 1: Indicated and Inferred Mineral Resource for the Jacomynspan Project at various cut-offs1.
1 Mineral Resources reported in ASX release of 8 March 2018: “Modelling Confirms Targets Surrounding Jacomynspan Intrusive”, available to the public
on www.orionminerals.com.au/investors/asx-jse-announcements. Competent Person: Orion’s Mineral Resource: Mr. Jeremy Witley. Orion confirms it is
not aware of any new information or data that materially affects the information included above. For the Mineral Resources, the company confirms
that all material assumptions and technical parameters underpinning the estimates in the ASX release of 8 March 2018 continue to apply and have not
materially changed. Orion confirms that the form and context in which the Competent Person’s findings are presented here have not materially
changed.
Figure 2: Oblique section showing the Jacomynspan Mineral Resource with potential strike and dip extensions.
Since commencing exploration on the Joint Venture in 2017, Orion has identified high priority targets for potential
massive sulphide, base metal mineralisation (refer ASX release 3 July 2018). Orion has identified these massive
sulphide targets as having potential to host both intrusive sulphide Ni-Cu-PGE and also Volcanogenic Massive
Sulphide (VMS) copper-zinc mineralisation, similar to Orion’s Prieska Copper-Zinc Project located 65km to the
south, where Orion recently published an updated Bankable Feasibility Study (refer ASX release 26 May 2020).
Figure 3: Type 2 mineralisation hosted by all lithological units at Jacomynspan. Including massive sulphide stringers, with higher
tenor (greater than 4% Ni), and which has coarse loop texture (red arrow) (JMP038) (refer ASX release 8 March 2018).
Once field operations resume, Orion intends to drill test several geophysical targets with the potential to host
concentrations of Type 2 sulphide mineralisation and potential large bodies of high tenor nickel.
Figure 4: High priority geophysical targets for base metal sulphides identified by Orion following High Power SkyTEMTM survey
(refer ASX release 1 February 2018).
For and on behalf of the Board.
Errol Smart
Managing Director and CEO
13 July 2020
ENQUIRIES
Investors Media JSE Sponsor
Errol Smart – Managing Director & CEO Nicholas Read Rick Irving
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: rick@merchantec.co.za
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: 13-07-2020 07:48:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
