Orion Minerals, sitting on cash, still hunting for Chinese opportunities

Orion Minerals Group, which abandoned efforts to mine iron ore in Chile and pulled out of a proposal to invest in a Chinese home fittings business, says it is still looking for investment opportunities.

The NZAX-listed company reported a net loss of US$6,000 for the year ended June 30, from a loss of US$2.4 million a year earlier, when it had costs for its failed efforts to become a South American mining company. It recorded no revenue.

Shares of Orion last traded at 0.5 cents, valuing the company at $2.1 million. Its biggest asset is the US$7.6 million in cash it has for investments. The biggest item in its income statement was US$450,000 of administration and other expenses.

“The board continues to consider opportunities available to the company and in particular its focus on undertaking private equity investment in projects and companies with Chinese market potential,” the company said in a statement today.

The company wants to use the “strong network of associates” of its 13.5% shareholder Fengli Group in China and throughout Asia.

Orion 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 – were liquidated after it concluded the venture wasn’t economic.

It also pulled out of spending US$6.1 million on 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.

(BusinessDesk)

BusinessDesk.co.nz

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