Orion Minerals Proceeds Loan Facility To Advance Prieska Project
Tembo is a private equity group targeting junior and mid-tier mining investment opportunities in developing countries.
Proceeds from the loan facility will be used principally to progress the Prieska Project bankable feasibility study, which is on track for completion in Q2 of 2019, said the company in a statement.
Chairman of Orion Minerals, Denis Waddell said: “We are very pleased with Tembo’s ongoing support as well as the support of the holders of the convertible notes, as it enables the continued rapid advance of the Prieska Zinc-Copper Project through to the completion of bankable feasibility studies.”
The company remains focused on bringing Prieska into production as quickly as possible, based on the parameters outlined in the positive Scoping Study released in December 2018.
Under the terms of the loan facility Tembo, which holds a 22.99% stake in Orion Minerals, may, at its election, have the balance of the loan facility (including capitalised interest and fees) repaid by the issue of ordinary shares in Orion Minerals to Tembo at a deemed issue price of AUD 2.6 cents per share.
In March 2017, the company issued 232.69M convertible notes to the value of AUD6.05M with a face value of AUD 2.6 cents each and has now extended the convertible notes by six months, from 17 March 2019 to 30 September 2019 upon maturity.