Private equity group Tembo Capital has extended the term of the repayment date of the $3.6-million loan facility set aside to advance metals explorer Orion Minerals’ Prieska copper/zinc project, in the Northern Cape, to June 30, 2021.
The loan facility was originally due for repayment by October 31.
The Prieska project is Orion’s flagship asset, having been historically mined between the 1970s and 1990s. The project is being redeveloped on one of the world’s top-30 volcanogenic massive sulphide base metal deposits, with a recorded historical production of over 430 000 t of copper and one-million tonnes of zinc from 46.8-million tonnes of sulphide ore milled.
The unsecured convertible loan facility had initially been agreed with Tembo Capital on January 25, 2019.
Under the terms of the loan facility, Tembo Capital may elect for repayment of the balance of the loan facility (including capitalised interest and fees) to be satisfied by the issue of fully paid ordinary shares by Orion to Tembo Capital at a deemed issue price of $0.026 apiece.
Tembo Capital can also elect to receive shares in repayment of the outstanding amount in substitution of payment in cash.
As at September 30, the balance of the loan facility was $4.7-million, including capitalised interest and fees.