Agreed a CR is on the short term horizon, with the question of amount and purpose still needing to be stated.
I guess Prieska remains in a holding pattern for now, with little new spend needed while funding discussions continue?
The new OCC project raises so many questions, just an option at present and I don't really understand at what point ORN need to decide on exercising that right. But it seems they are already spending money with the recent JORC announcement and will continue to advance the project towards a BFS (building on the existing PFS). How much is this going to cost and what is the trigger for exercising the option? And if they do exercise, how will they fund the $7.5 to $16M acquisition, a mix of shares (how many) and cash (how much and from where?). And then their ~60% share in the construction of mill, float concentration plant and tailings storage facility! Things must be going to happen quickly in any event if they are serious about getting to production in 18-24 months as per the submitted mining works program.
I further assume their full technical resources will be directed to OCC and any planned regional exploration around Prieska will be put on hold?
It does worry me that they have gone wide rather than focussing on Prieska, but as others are speculating, there must be some grand plan lurking whereby a major funder/partner/buyer is in the wings looking at taking on both Prieska and OCC and taking both to production over the next few years. Otherwise why all the talk of synergies and transformation?
ORN Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
