Orion confident of funder support to develop PCZM

Copper mine developer Orion Minerals is confident of raising the necessary funds to proceed with development of its flagship project, Prieska Copper Zinc Mine (PCZM), based on funder support to date, it said in its latest quarterly report.It recently raised a A$2 million (R23.8 million) loan from a company owned by a former director, which will tide it over for the next few months, but substantially more funds will be needed over the next three years to fully develop PCZM.The group’s latest quarterly report shows it is burning cash at the rate of about A$2.7 million a quarter and it held A$1.66 million in cash on its balance sheet at end March. However, it expects its cash burn rate will slow now that the definitive feasibility study (DFS) into PCZM has been finished.In February 2023 Orion raised a R250 million (A$20 million) convertible loan from the Industrial Development Corporation (IDC) to fund early works, which has been spent. On completion of the DFS, the IDC can choose to convert the loan into either equity or an unsecured loan in the project.The DFS for PCZM published at end-March showed PCZM will be constructed in two stages. The upper level will be developed first, “at a relatively modest capital cost”, said MD and CEO Tony Lennox, who took over from Errol Smart at quarter-end. First bulk concentrate from the upper block can be produced within 13 months of starting construction, and the Deeps orebody will be reached 22 months later. Payback will be within 4.8 years of first concentrate production.Total project start-up capital expenditure will be R6.17 billion (A$494 million). Another R1.2 billion (A$97 million) will be needed for sustaining capex.Lennox said the focus over the next months will be raising project financing, planning implementation of the project, negotiating offtake agreements for concentrate, and signing agreements for key early works activities and items with long lead times.The post Orion confident of funder support to develop PCZM appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com