Orion progresses the acquisition of the Okiep Copper Project
Acquisition agreements are in the process of being signed to allow closing in several stages as and when the outstanding conditions precedent are met. The remaining total aggregate purchase consideration of approximately ZAR59.60M payable by Orion, in combination of cash and issue of Orion Shares remains unchanged, with CPI adjustment for deferred phases of consideration also payable.
The first Phase settlement, being ZAR10.86M cash and ZAR35.10M in Orion Shares, will be completed immediately following South African Exchange Control Approval being received. The initial consideration includes the important SAFTA Mining Right which was transferred to the ownership of NOM in December 2023.
Orion’s Managing Director and CEO, Errol Smart, commented: “We are extremely pleased that we have finally received confirmation that the majority of the outstanding conditions have been fulfilled for the acquisition of the Okiep mineral rights first announced on 2 February 2021.
“While we have been able to continue operating on the properties and progressing the projects, we have now moved to finalise the Flat Mines Bankable Feasibility Study on the NOM Mining Right. We are now only awaiting the approval of the water use licence before the project is fully permitted, allowing us to commence mine development. The timing is therefore opportune to complete the acquisition of the Mining Right before progressing the funding of the mine.
“The conclusion of the BFS report is only awaiting the results of confirmation drilling and metallurgical test work that is currently underway and is expected to be concluded by June 2024.”
