IDC acquires a 43.75% stake in Okiep Mining

This marks a major step towards the re-establishment of mining operations at the advanced Okiep Copper Project, Orion’s second emerging production hub in the Northern Cape Province. The IDC will now advance its pro rata share of the ZAR79 million (Approximately AUS$6.9 million) total budgeted predevelopment operating costs of NOM, with Orion having already advanced its entire pro rata share of ZAR44 million (Approximately AUS$3.9 million) to NOM. NOM is acquiring the prospecting rights and the recently granted mining right at Okiep from Southern African Tantalum Mining Proprietary Limited (SAFTA), in which the IDC is currently a 43.75% shareholder. Upon NOM acquiring the SAFTA assets, the IDC will sell 22.22% of its shares in NOM to a BEECo, being a BEE Entrepreneur entity led by Lulamile Xate, to further the Historically Disadvantaged South Africans (HDSA) ownership objectives of the Mining Charter 2018. Thereafter, Community and Employee Trusts will each acquire a 5% meaningful economic participation interest in NOM, resulting in a 30% meaningful economic participation interest being held by HDSA’s, consistent with the HDSA ownership objectives of the mining charter 2018.

Orion’s Managing Director and CEO, Errol Smart, commented:

“We are very pleased with the swift progress that has been made in completing our NOM deal with the IDC. We have signed definitive agreements, met all conditions precedent and have issued the draw-down notice for funding – all in less than two months after signing non-binding term sheets with the IDC. We commend and thank the IDC for the professionalism, commerciality and vigour with which they participated in this process. 

"Orion, the IDC and Lulamile Xate’s BEECo all share a common vision to fast-track the feasibility studies, permitting and early development of the Flat Mines project at Okiep, with a view to restarting mining operations in this richly endowed copper district as soon as possible. The bankable feasibility study is already at an advanced stage and is expected to be completed and submitted for independent peer review in 1Q23.

“While the NOM – IDC deal has been progressing, our team has also been working in parallel on the definitive agreements with the IDC for the ZAR250 million funding of the Prieska project, announced on 21 October 2022, and we expect completion of that agreement in the near future. Our growing business relationship with the IDC as a key development partner in unlocking the significant base metal potential of the Northern Cape will also position us to deliver value for our shareholders, our host communities and our staff, who will also be shareholders in our mines.”

Read the article online at: https://www.globalminingreview.com/mining/16112022/idc-acquires-a-4375-stake-in-okiep-mining/