Independence pays high price to strengthen Orion ties

  • Friday, May 18, 2018
  • Source:ferro-alloys.com

  • Keywords:Independence, Orion ties
[Fellow]Independence pays high price to strengthen Orion ties

[ferro-alloys.com]Independence Group has lifted its stake in South African base metals explorer Orion Minerals to 11.1 per cent via a $5 million placement.

The mid-tier gold and base metals miner has paid a healthy premium to secure preferential rights to joint venture or buy Orion’s nickel projects in the Areachap Belt in the Northern Cape of South Africa.

Independence will pay 5¢ a share for its additional 6.9 per cent stake in Orion, compared to its last traded price of 3.6¢ yesterday.

The deal strengthens an existing relationship between the two companies with the pair having signed a joint venture agreement over Orion’s projects in the Fraser Range near Independence Group’s Nova nickel project.

Orion will use the cash to expedite development of its flagship Prieska zinc-copper project in South Africa and continue exploration at its other base metals projects in the Areachap Belt.

Orion’s managing director Errol Smart said the company was pleased to cement a relationship with a strategic investor such as Independence.

“IGO’s Nova Bollinger nickel and Jaguar zinc-copper mining operations in WA have remarkable geological and engineering similarities to Orion’s advanced stage projects in the Areachap Belt in South Africa,” he said.

“In addition, the exploration models and methods that Orion has employed in the Areachap Belt are very similar to those being used by IGO in a similar geological terrain in the Fraser Range.

“Clearly, there are strong synergies between the companies and a meeting of minds between our technical teams.”

The Orion deal follows a recent trend of big and mid-tier mining companies striking small farm-in and joint venture deals with junior explorers to gain a foothold in prospective projects.

  • [Editor:王可]

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