Prieska copper-zinc project is in fund-raising stage

During the 2nd 2020 quarter, Orion continued work on its highly prospective South African projects, including the completion of the Prieska Project updated BFS in June 2020 and a continued focus on optimisation studies. In addition, ongoing low-key exploration activities including soil sampling on the near-mine prospects were undertaken and a Mining Right Application over the Marydale Gold-Copper Project was submitted.

PRIESKA COPPER-ZINC PROJECT

The Prieska Project continues to be the focus of the Company’s activities and is now in the fund-raising stage after an updated BFS was completed during the Quarter.

Post-BFS activities undertaken during the Quarter included continuing with the mine to market enterprise optimisation investigations being carried out in collaboration with Whittle Consulting, advancing licencing processes and continuing with project execution planning activities which include preparing the EPCM inquiry documentation and ongoing discussions with potential service providers.

Following the positive outcomes of the updated BFS, Orion is targeting a final investment decision for the Prieska Project as soon as financing negotiations have been concluded. Orion intends to fund the development of the Prieska Project by means of a combination of debt and equity.

The Company is progressing discussions with both potential debt and equity providers. Orion has appointed Macquarie Capital to assist the Company in considering equity funding alternatives.

During the Quarter, the Company received confirmation from the South African Companies and

Intellectual Property Commission, that Orion’s application to change the name of Repli Trading No 27 (Pty) Ltd to Prieska Copper Zinc Mine (Pty) Ltd (Prieska) was successful. Prieska (a 70% owned subsidiary of Orion) and its subsidiary company Vardocube (Pty) Ltd (Vardocube), hold the mining and prospecting rights which cover the Prieska Project area.

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