A non-binding agreement, due to be finalised next month, positions IDC to own a 43.75% stake in New Okiep Mining Company, with Orion to hold 56.25%.
However, black empowerment partners will ultimately own 30% in New Okiep.
IDC, which was already a JV partner, has pledged to fund its pro-rata share of the circa A$7 million in pre-development costs, with Orion already advancing almost $4 million.
IDC will then bring in local black empowerment partners, by selling a 22.2% stake to an entity led by local entrepreneur Lulamile Xate to meet local mining laws.
A further 10% stake in New Okie will be sold to community and employee trusts.
The area produced in excess of two million tonnes of copper over more than 150 years before operations ended in 2003.
Last week, Orion secured a mining right over the Flat Mines area, and with funding and local ownership structures being finalised, a feasibility study is targeted for completion by mid-2023.
Orion’ managing director Errol Smart described Okiep as “a very exciting, brownfields copper mining project” with solid foundations.
A 2021 scoping study outlined a moderate start-up option on up five defined copper deposits.
Three of the Flat Mine deposits have maiden JORC resources totalling 122,000t.
Establishing production and a 760,000tpa plant would cost up to $58 million, but was expected to generate 9000tpa copper over 12 years, generating gross average annual post-tax free cashflow of $32 million based on all-in sustaining costs of US$4478/t and a $7600/t copper price.
The long-term hope is to restore Okiep to production levels last seen under Newmont Mining and Goldfields’ ownership of the Okiep Copper Company, where output was between 30,000-40,000tpa copper.
Ultimately, Orion also hopes to develop its flagship Prieska copper-zinc project, some 450km to the east, producing 22,000tpa copper and 70,000tpa zinc.
It has been chasing a development at Prieska since 2015, and secured Okiep early last year.
