Orion Minerals has signed addenda to agreements for acquiring a controlling interest in the Okiep Copper Project (OCP) in South Africa's Northern Cape province.
The Industrial Development Corporation of South Africa (IDC) is yet to sign, pending internal approval. The OCP lies around 570km north of Cape Town.
In 2021, Orion opted to directly acquire assets from Southern African Tantalum Mining (SAFTA), Nababeep Copper Company (NCC) and Bulletrap Copper (BCC), instead of purchasing shares in these entities.
Orion’s subsidiaries, New Okiep Exploration Company and New Okiep Mining Company will acquire the assets.
The remaining purchase consideration by Orion and its subsidiary, Area Metals Holdings No 6 (AMH6), is nearly R59.60m (A$4.88m).
This will be adjusted for inflation-related factors. The first phase settlement includes R10.86m in cash and R35.10m in Orion Shares, pending South African Exchange Control Approval.
The initial consideration involves the SAFTA Mining Right, transferred to New Okiep Mining in December 2023. The purchase consideration will be settled in cash and Orion Shares, with phased transfers of sale assets and restrictions on share disposal.
The first phase of the BCC and NCC transactions is expected soon, subject to regulatory approvals. Following IDC's internal approvals and signing of the addenda, Orion will seek final regulatory approval for the SAFTA transactions' first phase.
Orion plans to hold a general meeting in the second quarter of calendar year 2024 to seek shareholder approval for issuing shares as part of the purchase consideration.
