Orion in advance stages of Okiep Copper Project acquisition
Orion Minerals is making significant moves in acquiring a controlling interest in the Okiep Copper Project (OCP) located in South Africa.
The Okiep Copper Project (OCP) is located in the Northern Cape Province of South Africa, approximately 570km north of Cape Town and 450km west of the Company’s flagship Prieska Copper Zinc Project.The Project comprises the core of a premier historical copper district that produced >2Mt of copper over a 150-year period ending in 2003.
The firm has opted for a direct acquisition of assets from Southern African Tantalum Mining (SAFTA), Nababeep Copper Company (NCC), and Bulletrap Copper (BCC), rather than purchasing shares in these entities. Their subsidiaries, New Okiep Exploration Company and New Okiep Mining Company, are set to acquire these assets.
Acquisition deal
The total purchase consideration, including Orion and its subsidiary Area Metals Holdings No 6 (AMH6), amounts to nearly R59.60m (A$4.88m), subject to adjustments for inflation-related factors. The initial settlement includes R10.86m in cash and R35.10m in Orion Shares, pending approval from South African Exchange Control. The acquisition process involves phased transfers of sale assets and restrictions on share disposal, with the first phase settlement focusing on the SAFTA Mining Right, which was transferred to New Okiep Mining in December 2023.
The progress of the BCC and NCC transactions is expected soon, pending regulatory approvals. Orion will seek final regulatory approval for the SAFTA transactions’ first phase after IDC’s internal approvals and the signing of addenda.
Orion plans to convene a general meeting in the second quarter of the calendar year 2024 to seek shareholder approval for issuing shares as part of the purchase consideration, indicating a strategic and transparent approach to their acquisition strategy.
