By: OrePulse

Private equity firm Tembo Capital Management has sold its shareholding in Orion Minerals, a diversified metals explorer listed on the Johannesburg Stock Exchange (JSE) and the Australian Securities Exchange (ASX), as the company's Prieska copper-zinc project in South Africa's Northern Cape province nears a construction decision.

The stake was acquired by longstanding Orion shareholder Thomas Borman and an unnamed South African institutional investor described as a recent shareholder in the company. The size of the stake and the financial terms of the transaction were not disclosed.

Tembo's investment vehicle, Tembo Fund II, had backed Orion since 2017, when the fund supported the company's acquisition of its South African assets, and remained involved in Orion's development in the years since.

Tembo Capital chief executive David Street said the timing of the exit reflected both the fund's lifecycle and the progress of Orion's flagship project. "With the combination of the fund nearing the end of its term and the Prieska copper/zinc mine being very close to a construction decision, it is an appropriate time for the fund to exit," Street said.

Orion managing director and chief executive Tony Lennox thanked Tembo Capital for its funding support since 2017 and said the company's strategy remained focused on advancing the Prieska project toward development. "We are excited to be moving into the next phase of Orion's development, and are grateful to have supportive shareholders that will help us deliver our strategy," Lennox said.

The Prieska copper-zinc mine, located in the Northern Cape province, is approaching a construction decision that both Tembo and Orion executives cited as a factor in the timing of the share sale. No further details on the construction decision timeline were disclosed.