31/05/2017 - 10:58

Tembo invests in Orion

31/05/2017 - 10:58

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Zinc and copper explorer Orion Minerals has received a $3 million investment by private equity group Tembo Capital to fund work at its projects in Africa, and has flagged a further $1.8 million capital raising.

Tembo invests in Orion
Orion is exploring for copper and zinc at its Prieska project in Africa.

Zinc and copper explorer Orion Minerals has received a $3 million investment by private equity group Tembo Capital to fund work at its projects in Africa, and has flagged a further $1.8 million capital raising.

Melbourne-based Orion, which until earlier this month was named ‘Orion Gold’ and held its head office in Perth, said Tembo had subscribed for 125 million shares at 2.4 cents each to give it a 12.4 per cent stake in the business.

Tembo, which also holds $3 million in Orion convertible notes, had the option to invest up to $4.8 million in Orion, leaving the Africa-focused explorer with the option to seek a further $1.8 million from other investors by way of a placement.

Orion has also flagged plans to undertake a rights issue within three months.

“The company is in the process of reviewing the amount of funding required to rapidly advance the Prieska zinc-copper project through to completion of a feasibility study leading to a development decision point,” Orion said in a statement.

“Following this review, the company will determine what capital raising initiatives are required which Tembo has indicated it will support.”

Orion managing director Errol Smart said the company’s directors were pleased with Tembo’s decision to invest in the business.

“The company welcomes Tembo as a substantial shareholder and looks forward to working with Tembo to progress the Prieska zinc-copper project and in undertaking intensive exploration programs on the company’s highly prospective ground holdings in the northern cape of South Africa,” he said.

Orion shares were unchanged at 2.4 cents each at 11am.

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