ASX- and JSE-listed Orion Minerals has provided a copy of a share purchase plan (SPP) offer booklet and application form, which is in the process of being dispatched to eligible shareholders, to raise up to about R60-million.

The SPP opened on July 5 and is expected to close on July 23. Eligible shareholders can now apply for parcels of new shares ranging from at least R2 000 to a maximum of R365 000 without incurring brokerage or transaction costs.

The issue price is 18c a share, representing a 1.7% discount to the volume-weighted average price (VWAP) of the company's shares on the ASX and a 16.1% discount to the VWAP on the JSE over the five trading days preceding the offer announcement date. It also reflects a 15% discount to the combined VWAP of the company's shares on the ASX and JSE over the ten trading days prior to the announcement.

The company plans to issue up to 333.33-million SPP shares at the same issue price of 18c a share, with the aim to raise up to R60-million.

All SPP shares will be quoted on either the ASX or JSE for South African eligible shareholders and will rank equally with other fully paid ordinary shares in issue.

This offer is available to eligible shareholders who have a registered address in Australia, New Zealand, South Africa, Germany, the Netherlands, the Jersey Channel Islands, the UK, Mauritius and Singapore, and who held Orion shares as of 19:00 (Melbourne time) on June 28.

The SPP allows eligible shareholders to participate in the capital raising at the same offer price as the shares issued under the placement. The funds raised from the placement and SPP will be primarily used to develop the Prieska copper/zinc mine, including mine dewatering, access development, concentrator plant and tailings storage facility procurement and construction, as well as general operational-readiness works.

Other uses include permitting and accelerating infrastructure development for early production at the Okiep copper project, advancing mineral resource expansion and exploration, maintaining the company's prospecting rights in the Northern Cape of South Africa, and for general working capital purposes.

The company previously announced on July 1 that it had secured firm commitments for a placement of new fully paid ordinary shares to sophisticated and professional investors, aiming to raise about R92.3-million.

Under this placement, about 513-million shares will be issued at an issue price of 18c each. The issuance falls within Orion's 15% capacity for equity securities issued without requiring shareholder approval.