Orion Gold has met all conditions and procured the necessary funding to acquire 100% of Agama Exploration & Mining.

Through its subsidiaries, Agama ultimately owns an effective 73.33% interest in the prospecting rights covering the historical Prieska Copper Mine (PC) in Copperton in South Africa's Northern Cape province, as well as Marydale Gold-Copper Project, a volcanogenic gold-copper discovery 60km from PC.

Settlement of the acquisition is scheduled to be completed before the end of this month.

On 7 February, Orion Gold announced a proposed capital raising through issuing convertible notes to investors. The offer closed on 16 March after raising $6.05m.

Furthermore, Orion has secured the involvement of a mid-tier miner Independence Group (IGO) in the ongoing exploration and evaluation of the tenement package in Western Australia's Fraser Range region.

Under the joint venture deal with Orion, IGO has made a $700,000 cash payment to Orion and subscribed for a $1.3m share placement at 2.4 cent per fully paid ordinary share.

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"With funding secured through the convertible note issue and $2m received from IGO, the Agama transaction has now been confirmed as unconditional."

Orion has received all regulatory and shareholder approvals for Agama acquisition. In addition, with funding secured through the convertible note issue and $2m received from IGO, the Agama transaction has now been confirmed as unconditional. This enables Orion to complete its acquisition of South Africa's Prieska zinc-copper and Marydale gold-copper projects.

Agama is well-financed at project level to advance its main project, with a ZAR30m ($2.3m) facility available from a South African investment fund. The PC Project also has a cash-backed environmental fund of ZAR18.2m ($1.4m), which has not been needed since the mine closed in 1991. 

Under the deal, the acquisition carries a purchase consideration of ZAR53m ($4.17m), with ZAR31.5m  ($2.4m) paid in cash and the remaining amount in Orion Gold shares.

Furthermore, Orion has agreed to settle all historical shareholder loans for Agama that amounts to nearly ZAR33.3m ($2.62m).

Recently, the company has announced encouraging exploration results from the +105 Level Target (open-pit) at Prieska zinc-copper project.