As part of the agreement IGO has secured matching rights to any potential joint venture or sale of Orion’s nickel projects located in the Areachap Belt, South Africa. If Orion wishes to assign the whole or any part of its right, title or interest in any of its South African Nickel Projects (located within a defined area of the Areachap Belt) to a third party, it must first offer to assign such interest to IGO on the same terms and conditions as the proposed terms and conditions of the assignment to the third party.
Yesterday Orion Minerals closed at 3.7c, so this looks to be a very good deal for the company as it values ORN at a much higher price than the market and is a big vote of confidence in the potential of its current projects.
As expected, Orion shot up today and is currently trading at 4.7c. I’m posting a five year chart to illustrate the historical performance of the company and the importance of the 5c level, which appears to be an area of resistance and which the company hasn’t traded above since September 2014.
So Orion Minerals is looking like a potential breakout to me. It may have a big job soaking up all the sellers at around 5c but if it gets past there we may see some solid short term gains.
