Privately owned South African mining group Clover Alloys has decided to not exercise additional share options in ASX- and JSE-listed Orion Minerals, but remains a significant shareholder in the company with about 9% of Orion's share capital.

Clover Alloys in March subscribed for 440-million shares in Orion for about A$6.7-million, as part of a larger share placement by Orion to raise about A$13-million.

Participants in the A$13-million share placement, including Clover Alloys, were offered four free attaching options for each share issued under the placement, exercisable at A$0.017 apiece, and expiring on November 30.

At the time, Orion noted that, should all of the options be exercised, the overall funding raised as part of the share placement would increase to A$73-million.

"Clover's decision to not exercise the additional share options should not be seen as a negative reflection of Clover's view of the underlying potential of Orion's projects in South Africa, which Clover still believes are significant," says Clover Alloys CEO Philip Kotze.

"Clover's decision to take a more measured investment approach and not to increase its holding in Orion at this time is understood and respected. Orion will continue to benefit from Philip Kotze's experience as a nonexecutive director of Orion and from Philip's experience with Clover in developing mining operations in South Africa," adds Orion MD and CEO Errol Smart.

Orion Minerals owns three assets – the Prieska copper/zinc mine, the Okiep copper project and the Jacomynspan nickel/copper/cobalt/platinum-group-element project – in South Africa's Northern Cape province.

The company's share price on the JSE fell by more than 36% on the news, but closed the day, on November 14, down 22% compared with the prior day's close.

Its share price on the ASX also fell by nearly 12% on the day.