May 1, 2012 (Source: Orion Metals) — ORM announces that the Company has raised $1.1 million from its 3 largest shareholders, ConglinInvestment Group, Jien Mining and Metallica Minerals Limited. The financing was provided by way ofa private placement to each shareholder to raise $750,000 and a converting loan agreement with Conglin Investment Group for an additional $350,000.
The funds are to be applied to exploration and evaluation work including the acquisition of the Company’s new South Korean projects (refer ASX announcement of 26 April 2012) and for general working capital purposes. The raising takes ORM’S current cash position to approximately $A3.8 million.
The placement will see the issue of 7,500,000 shares at 10 cents each to the three largest ORM shareholders as follows:
Conglin Investment Group 3,500,000 shares ($350,000)
Jien Mining Pty Ltd 3,000,000 shares ($300,000) and
Metallica Minerals Limited 1,000,000 ($100,000).
The Conglin Investment Group has also provided ORM with the $350,000 converting loan facility. The facility will be repayable through the issue of convertible notes on the basis one note for every 10cents of the loan. Repayment will be subject to and immediately following the receipt of shareholder approval of the issue. The notes issued to repay the loan will be convertible into ordinary shares atany time within 6 months of the issue on the basis of 1 share for each note.
Chairman David Barwick said, “We are delighted at the confidence shown in Orion by our major shareholders in providing additional funds to continue to drive our exploration and acquisition programs forward”.