Orion Minerals seeks new life as equity investor in China

Orion Minerals seeks new life as equity investor in Chinese home fittings business

March 17 (BusinessDesk) – Orion Minerals Group has abandoned efforts to mine iron ore in Chile after concluding there was inadequate water in the desert region and no port facilities if it managed to dig out the ore. Its latest plan is to become a minority holder in a home fittings and interior design group in China.

The NZAX-listed company began life as RLV No. 3 Ltd. (for reverse listing vehicle), which acquired Chilean iron ore miner Minera Varry S.A for US$13.5 million of cash and the issue of shares and options. Remaining assets in South America – mainly cars and trucks – are to be liquidated after it concluded the venture isn’t economic.

Its latest plan is to use US$6.1 million of its remaining US$7 million in cash to buy Taiford (Asia), a company that owns 2% of China Home & Commercial Space Group, which it describes as a vertically integrated interior design, project management, furnishings and fittings group with its own branded consumer products. CHC is expected to go public and list in China after an initial public offering in the next 12 to 24 months, Orion said.

The re-focus on China ties with the interests of Fengli Group, which owns 13.5% of Orion.

The purchase of the interest in CHC is subject to shareholder approval.

Orion today posted its results for the six months ended Dec. 31, showing a profit of $202,110, from a year-earlier loss of $1.8 million. It recorded no revenue.

It said the return to profit reflected reduced overhead costs in Chile and a foreign-exchange gain of $599,000.

Shares of Orion last traded on Feb. 24 at 2 cents, valuing the company at $8.3 million.

(BusinessDesk)

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