Australian copper mining company Orion Minerals has signed agreements with certain subsidiaries of Triple Flag Precious Metals for an $87 million financing package to further development of its Prieska copper-zinc mine in South Africa.
This package covers the flow of precious metals worth 80 million dollars. It can be withdrawn in installments along with other bank or third party funds during the development phase of the copper and zinc mine.
The flow of precious metals is subject to full funding for mine development, approval from South African regulatory authorities and other requirements.
In addition, the financing package includes an additional financing agreement of A$10 million ($6.76 million).
Orion Minerals plans to use this funding to complete the feasibility study for the extraction of the crown pillars and remnants at the Prieska mine.
It will also be used to finance the start-up and operation of pumping and water treatment plants at the mine.
Triple Flag Chief Executive Shaun Usmar said: “The A$10 million provided under the financing agreement in exchange for payments equal to 0.8% of gross proceeds provides Triple Flag with immediate exposure to Prieska while the initial mining feasibility study is completed and water extraction begins. ”
The additional financing agreement remains subject to the company raising A$20m ($13.5m) to carry out the initial mine works bank feasibility study and drainage project, among others.
Orion Minerals Managing Director and CEO Errol Smart said: “This funding, provided by Triple Flag in conjunction with IDC, is critical for Orion as we transition from an exploration company to a mine developer.
“Our new operations team at the Prieska mine, under the experienced leadership of recently appointed Eastern Operating Executive Johan Stolz, has already made great progress in preparing Prieska for development.
“This includes establishing underground dams and pumping stations and preparing development in the +105 test mining area to allow for the safe start of drill and blast.”
