54 replies to this topic

[Dusty Mountain]

ORION up over 30% on ASX today   

[Dusty Mountain]

ASX/JSE RELEASE: 18 May 2018

 

Independence Group to become a Substantial Shareholder in Orion through a $5.0M Placement to Advance South African Projects Leading mid-tier miner,

 

Independence Group NL (ASX: IGO) will become a substantial shareholder in Orion via a $5.0M share placement at 5 cents per Share. IGO secures preferential rights to joint venture or purchase Orion’s nickel projects in the highly prospective Areachap Belt located in the Northern Cape, South Africa. Collaborative working relationship formed between Orion and IGO to enhance Orion’s planned regional exploration programs within the Areachap Belt. The proceeds of the Placement, and the new relationship with IGO, will underpin Orion’s strategy to fast-track the redevelopment of its flagship Prieska Zinc-Copper Project in South Africa and progress its highly prospective regional Nickel-Copper-Cobalt and Zinc-Copper exploration projects within the Areachap Belt. Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to announce that it has taken another important step in its base metal development strategy in South Africa after entering into an agreement with IGO, that will see the leading mid-tier miner and explorer becoming a substantial shareholder in Orion and cementing a collaborative working relationship between the two companies. Orion has entered into an agreement with IGO, for IGO to subscribe for a placement of ordinary shares (Share) in Orion at 5.0 cents per Share, to raise $5.0M (Placement). The agreement also sets out the terms of an agreed collaborative working relationship between the two parties, whereby IGO has secured matching rights to any potential joint venture or sale of Orion’s nickel projects located in the Areachap Belt, South Africa. If Orion wishes to assign the whole or any part of its right, title or interest in any of its South African Nickel Projects (located within a defined area of the Areachap Belt) to a third party, it must first offer to assign such interest to IGO on the same terms and conditions as the proposed terms and conditions of the assignment to the third party. IGO’s preferential rights include the Company’s advanced Jacomynspan Nickel-Copper-Cobalt Project, where the Company has announced a JORC compliant Mineral Resource estimate (refer ASX release 8 March 2018). The collaborative working relationship formed between Orion and IGO will also enhance Orion’s planned regional exploration programs within the highly prospective yet very much under explored Areachap Belt. Due to the lack of favourable environments world-wide which have the potential to host major new NickelCopper-Cobalt and VMS discoveries, Orion’s large ground holdings in the Northern Cape of South Africa provides both Orion and IGO significant exposure to exploration success. Based on regional exploration programs already completed, Orion has identified the potential for discovery of nickel hosting massive sulphide bodies similar to IGO’s Nova Bollinger Mine in the Fraser Range, Western Australia in the Areachap Belt (refer ASX releases dated 14 July 2016 and 8 March 2018). Orion intends to commit a minimum amount equivalent to 30% of the $5M Placement to IGO (being $1.5M) towards its Nickel-CopperCobalt exploration targets. The Placement and IGO’s preferential rights further strengthen the existing relationship between Orion and IGO, following the Company’s announcement on 10 March 2017 that Orion and IGO had entered into a joint venture agreement on the Fraser Range Nickel-Copper Project, Western Australia and that IGO had subscribed for a $1.3M share placement in Orion. The additional $5M share placement by IGO in Orion increases IGO’s shareholding in Orion from 4.2% to 11.1%. The agreement with IGO is consistent with Orion’s strategy to fast-track it flagship Prieska Zinc-Copper Project and progress its highly prospective regional exploration projects located within the Areachap Belt, South Africa. Orion’s Managing Director and CEO, Errol Smart, commented: “We are very pleased to cement a relationship with a strategic investor with the qualities of IGO. IGO’s Nova Bollinger Nickel and Jaguar Zinc-Copper mining operations in Western Australia have remarkable geological and engineering similarities to Orion’s advanced stage projects in the Areachap Belt in South Africa. 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, Western Australia. Clearly, there are strong synergies between the companies and a meeting of minds between our technical teams.” Errol Smart Managing Director and CEO

[Dusty Mountain]

Courtesy of Smart101 Hotcopper, see below:

 

See link to article in Mining Weekly at the bottom - Vedanta has announced that a feasibility study into the development and construction of a zinc smelter-refinery complex at their Gamsberg operation the Northern Cape is under way. The Gamsberg refinery could see a further investment by Vedanta of between US$700-million and US$800-million. 
Gamsberg is not far from the Prieska Project and ore can easily be transported to Gamsberg in the future. The zinc and copper concentrate from Prieska were very sought after by smelters in the past due to low deleterious elements - i.e. very "clean" concentrates making them attractive for smelters or as a blending product for bulk concentrate traders.
The Northern Cape region of SA is poised to become the world's largest zinc supply region and having large player like Vedanta with its Gamsberg operation in the same region as the  Prieska Project, could provide an array of opportunities for the Prieska Project and ORN.

http://www.miningwee...cape-2018-05-02

 

[Dusty Mountain]

Regarding mining risks in SA, Vedanta as a large shareholder of Anglo american has requested the  Anglo board not to sell any more mines in SA...

The mining charter is being reviewed with Gwede Mantashe at the Helm and the Government focus under Cyril Ramaphosa is to be investment friendly as we try and turn our economy around.

The fact that under previous President Jacob Zuma, Orion still managed to get this far without any political roadblocks to where they consider "SA`s Prieskas" their flagship project speaks volumes as to their management teams conduct and direction they are taking...goes to show they are either very confident or foolhardy in persisting.

 

Even selling off "Conors Arc", if that doesn`t show commitment I don`t know what will.

As a South african resident I am hopeful and confidence is no longer waning, go Cyril!

[Dusty Mountain]

The Prieska project has another exciting prospect, that being the by-product [Cobalt] from copper mining, and we all know that EV`s is creating a market growth curve still in its infancy.ie see TAW tawana resources

Cobalt as a resource is currently limited in its supply and the cost of has has been soaring in the past couple of years.
This is certainly a medium to long term hold that will require patience with production only getting underway in 2022.

Will the sale of "Connors Arc" provide sufficient capital to see it through to production?

 

Definitely not but it should see us through to the completed BFS hopefully. There may be a consideration once the BFS is out to sell "Fraser range" to see us through to production without a need for a CR.

And based on the BFS results the sp rerate should reflect positively or negatively, i`m banking on positively and so is Tembo capital "Tembo Capital is a private equity investment advisor targeting junior and mid-tier mining investment opportunities in emerging markets"
currently holding 19.99% share in Orion, the other large shareholders/ investment co`s incl Tembo hold almost 40%.

 

There is definitely a large vested interest in seeing this project go from strength to strength $$$$

[Bullhunter]

Hannam & Partners report 

12/03/2018

 

The market is under-pricing the potential for low-capital-intensity, high-returning growth offered by the project, with our DCF-based price target of AUD 9.5c/share implying 94% upside to the current share price.

 

https://orionmineral.../presentations/

[Goliath]

I'm in.

 

Thanks,appreciate the feedback. Ironically I took a small punt on it yesterday.. does look promising and worth the gamble

[Bullhunter]

Bull your view on Orion - Yay or nay to take a small gamble on?

I'm in.

[Goliath]

Zinc on a tear:

 

http://markets.busin...ties/zinc-price

 

Bull your view on Orion - Yay or nay to take a small gamble on?

[Dusty Mountain]

https://stockhead.co...rican-explorer/

 

Lots of info on this potential bagggggger 

[Bullhunter]

Zinc on a tear:

 

http://markets.busin...ties/zinc-price

[Bullhunter]

The zinc price is at a decade high and the outlook is for it to stay strong for much of 2018, underscoring decisions by miners in SA to step up production and bring fresh metal to the market.

Acting on the fundamentals of supply and demand, the metal used to galvanise steel to protect it from corrosion has shown strong price growth, more than doubling since 2016, says John Meyer, a resources analyst at SP Angel in London.

He said supply constraints came at a time when Chinese demand was strong and had resulted in global stockpiles falling to 2008 levels.

The news is good for South African-focused companies operating in the Northern Cape. India’s Vedanta Resources, which is bringing its Gamsberg zinc mine into steady state production, and newly formed Orion Minerals, which plans to restart mining at the mothballed Prieska copper and zinc mine, are tapping into untouched resources and using modern mass-mining methods.

[Bullhunter]

S.A. Exports in November expanded by 11.5 percent, with sales of precious stones and minerals up 21 percent, base metals rising 19 percent.

 

https://orionmineral...ct-zinc-copper/

 

When will Prieska be in production?

[Dusty Mountain]

Anybody invested here or just the sophisticated investors... manipulating the speculative market.

 

ASX share price = 3.0 Aussie cents / JSE share price = R1.69 @ current exchange rate of 1 A$ = 10.83 ZAR

 

Parity with ASX sees value @ R0.32,49

 

Disparity of R1.36,51 over valued on JSE BY 420%!!!!

 

Somebody is milking the cows...