Orion Minerals raises capital to advance Prieska Copper Zinc Mine development

ORION Minerals' share price shot up 7.1% on the JSE Tuesday morning after it announced plans to issue shares and raise about R67 million to further its Prieska Copper Zinc Mine (PCZM).

- EDWARD WEST

The funds raised from the placement and share purchase plan will be used mainly to partially fund the development of the Uppers at the PCZM, including ongoing dewatering and site works; for mine development optimisation studies, and ongoing site works at the Okiep Copper Project, the Australia and Johannesburg-listed company said in a notice Tuesday.

The funds will also be used for general working capital purposes, including work associated with the finalisation of off-take related funding for the development of PCZM. Typically, company share prices fall when a share issue-for-cash is announced, so the higher share price indicates investor confidence in the mining development company's prospects.

The share price had gained over 7% to 14 cents on the JSE by Tuesday midday. The price has nevertheless fallen from 20 cents a year ago. The capital raise entails the issue of 522 million shares to investors. There are some 6.85 billion shares in issue.