Orion Minerals Concludes an Agreement to Further Strengthen its Bee Partnership - Introduction of Safika Resources
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
(“Orion” or “the Company”)
ORION MINERALS CONCLUDES AN AGREEMENT TO FURTHER STRENGTHEN ITS BEE PARTNERSHIP
Introduction of Safika Resources as a key BEE partner in Prieska Resources
Safika Resources to become a key member of Orion’s BEE partner company Prieska Resources.
Safika Resources is a successful BEE mining and exploration company operating in South Africa’s
Northern Cape since 2006.
Safika’s addition further strengthens the existing BEE partnerships within Prieska Resources.
Demonstrates Orion’s commitment to further broadening its BEE and beneficiary base.
Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that it has further
strengthened its black economic empowerment (BEE) partnership in Prieska Resources, by welcoming Safika
Resources on board as a key partner.
Further to the announcement of a ground-breaking BEE transaction on 14 April 2019, Orion and the founding
members of Prieska Resources, its BEE company, have concluded an MOU to include Safika Resources in its BEE
Prieska Resources will ultimately hold a 20% stake in the Prieska Copper-Zinc Project, while Prieska Resources’
shareholding will initially be made up of Safika Resources, Black Star and the Kolobe Nala Investment Company
BEE Partner Ownership of the Principals
Safika Resources (Safika) 44.72% Saki Macozoma
Black Star Minerals (Pty) Ltd (Black Star) 17.31% Jowell Tobias
Kolobe Nala Investment Company (Pty) Ltd (KNI) 37.97% Billy Mawasha
Black Star, who led the initiative to broaden the BEE participation and together with Orion formed the alliance
with Safika Resources, has the right (subject to the meeting of specified milestones being delivered) to increase its
holding in Prieska Resources so that the final holding would be as follows:
BEE Partner Ownership of the Principals
Safika 39.75% Saki Macozoma
Black Star 27.25% Jowell Tobias
KNI 33.00% Billy Mawasha
About Safika Resources
Safika Resources is predominantly invested in manganese through its investment in and management of
Ntsimbintle Holdings, which owns an effective 37% stake in Tshipi é Ntle Manganese Mining. Tshipi é Ntle
Manganese Mining, in partnership with Australia’s Jupiter Mines (ASX/JSE: JMS), mines Tshipi Borwa, an open-pit
manganese mine situated in South Africa’s Northern Cape Province.
Tshipi Borwa, came into production in 2012 and currently produces in excess of three million tonnes of manganese
per year achieving South Africa’s largest manganese ore exports in 2018. Ntsimbintle Holdings also holds a 9%
stake in Hotazel Manganese Mine and an extensive portfolio of prospecting rights and strategic partnership
In addition to its extensive operational experience, Safika and its subsidiaries have exemplary community relations
and through its support of community structures has touched the lives of thousands. Safika has demonstrated real
transformation by honouring communities hosting their mining operations.
Orion’s Managing Director and CEO, Errol Smart, commented:
“We are delighted to welcome Safika as a partner in our Northern Cape mining ventures. To us, Safika represents
an ideal business partner in the Northern Cape. As a majority black owned business that founded an extremely
successful mining operation by taking it from a grassroots beginnings by securing undeveloped Prospecting Rights,
to now holding one of the largest interests in, and management of, one of South Africa’s most successful mining
ventures and one of the world’s top manganese producers, is a tremendous badge of success. Safika’s success
demonstrates the potential for successful exploration and mining in the Northern Cape.
What has impressed us most is Safika’s ethical approach to business and its extremely strong commitment to the
community and stakeholders, which matches our own aspirations as we move to developing Prieska as a Tier 1
base metal producer and unlocking value from our large exploration holdings.”
Safika Chairman, Saki Macozoma, commented:
“This transaction with Orion sees us further entrench our position with fellow Northern Cape shareholders to diversify
into Copper and Zinc in the near term. We look forward to replicating our success in manganese achieved in the
Tshipi é Ntle, Tshipi Borwa mine that broke ground in Q4 2011 and was the largest manganese ore exporter from
South Africa in 2018. The development of the Prieska mine should be another material boost to the Northern Cape
Managing Director and CEO
2 August 2019
Investors Media JSE Sponsor
Errol Smart – Managing Nicholas Read Barnaby Hayward Rick Irving
Director & CEO
Denis Waddell – Chairman Read Corporate, Australia Tavistock, UK Merchantec Capital
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statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results,
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Date: 02/08/2019 08:08:00
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