Orion Minerals Nears Completion of Okiep Copper Project Acquisition

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Orion Minerals, a company listed on both the ASX and JSE, is in the final stages of securing a controlling interest in the Okiep copper project located in the Northern Cape, about 570 km north of Cape Town. This strategic move is supported by a significant partnership with the Industrial Development Corporation of South Africa (IDC).

Final Approvals and Transaction Details

The acquisition has received all necessary internal approvals from the IDC, along with the required regulatory nods from the South African Reserve Bank’s Foreign Surveillance Department and the South African Takeover Regulation Panel, making the transaction agreements unconditional. Orion is set to complete the first phase of the acquisition on May 7, with a payment of R46-million, which includes R11-million in cash and R35-million through Orion-issued fully paid ordinary shares. Strategic Importance of Okiep Copper District

The Okiep copper district, with a rich history of over two million tonnes of produced copper by past owners such as Newmont and Gold Fields, stands as a strategic asset. According to Orion’s Managing Director and CEO, Errol Smart, this district is beginning a new chapter aimed at meeting the global demand for copper, which is surging due to the growth of industries like electric vehicles and artificial intelligence.

Advancements and Future Plans

Orion has started a diamond drilling program in the Flat Mines area of Okiep, aiming to confirm historical data, gather geotechnical information, and perform additional metallurgical tests. Recent assay results have shown promising copper intercepts, indicating the high potential of the site. The completion of the Flat Mines feasibility study is expected by July.

Orion plans to finalize the first phase of the Okiep transaction on May 7, with a payment of R46 million, partially in cash and partially through issuing fully paid ordinary shares. A general meeting scheduled for May 23 will seek shareholder approval for the issuance of these shares.

Ongoing Developments and Expectations

With the IDC's approval of R43.75 million funding for drilling and operational costs, the project is well-funded to continue its development. Orion anticipates frequent updates on the project's progress in the coming months, promising significant news flow from the Okiep copper project.