Despite a challenging macroeconomic backdrop, Orion Minerals said on Friday that it had taken some important steps towards its goal of establishing two world-class future-facing metals production hubs in South Africa’s Northern Cape.
In its quarterly activity report, the group said the key highlight was the strategic funding arrangements it had secured with South Africa’s Industrial Development Corporation, both at its flagship Prieska project and at its Okiep copper project in the Northern Cape.
Orion's managing director and CEO Errol Smart said: “Securing a strategic partnership with a quality partner such as the IDC represents a major vote of confidence in Orion, the quality of our assets, and the team we are building to take these projects to production. It also helps secure our funding position over the next two years.”
He said the Prieska funding arrangement would allow it to finally get critical path pre-development work under way – including the all-important mine de-watering project and a trial mining programme on the +105-crown pillar, to support the bankable feasibility study on the early production plan.
"Together with the previously announced triple-flag funding agreement, this represents a huge breakthrough for the Prieska project, and is welcome news for all our stakeholders," he said.
Smart said Orion was focused on the supply of future-facing metals to help the global transition to a lower carbon future, and it was striving to deliver ESG-certified metals that could be tracked via blockchain from exploration to sale. It was this overarching vision that drove its activities and informed its decision-making.
“We are very pleased that, despite turbulent conditions in global markets, we have been able to attract investment and support, both from existing shareholders and from new investors and strategic partners who have underpinned our fundraising efforts this quarter.
“It is these investors who share our view that this is the right time to build new copper mines to meet the surging demand requirement over the next decade and beyond as the world transitions to a low-carbon future," he said.
Smart said that, as Orion moved ahead with its development and production plans, it had also begun the important process of building its mining and operations team, with the addition of some high-quality individuals who would drive the company into the future.
“I am very pleased to see the huge progress that is being made across the business as we kick off important pre-development activities. The company is very quickly maturing from explorer-developer to operating mining company, and I’m excited to see what we can deliver in the months ahead," he said.
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