Under the Fraser Range deal, IGO can acquire an initial 70% in Orion’s 100%-owned ground, 60% of the Mark Creasy joint venture ground and 65% of the GR JV tenements for $A700,000 in cash and subscribing for $1.3 million shares in Orion at 2.4c each.

Orion will be free-carried through to the completion of a prefeasibility study.

IGO will have options to top up its holding in the tenements by paying up to $17.5 million in cash or shares.

Orion is a large landholder in the Fraser Range district, with almost 4500sq.km of granted tenements and applications between IGO’s Nova nickel-copper mine and its Tropicana gold mine JV with AngloGold Ashanti.

IGO’s deal with Orion follows its takeover of Windward Resources and recent exploration deals with Sheffield Resources and Buxton Resources.

Orion managing director Errol Smart said the deal was an important one for Orion, given IGO’s position as the dominant player on the belt.

“Orion will benefit from IGO’s extensive expertise in the region, particularly the knowledge they have gained through the development and operation of the world-class Nova-Bollinger project, and their ability to fund ongoing exploration programs,” he said.

Smart said the deal allowed Orion to focus on its advanced South African base metals projects, where Tembo has agreed to invest an initial $3 million in the company’s current $8 million convertible note issue.

Tembo is a specialist African private equity fund and can acquire a 19.9% stake in Orion, subject to due diligence, by subscribing for $4.7 million worth of shares.

Once the placement is completed, it is expected the two will enter into a strategic relationship that will give Orion access to Tembo’s networks and Tembo access to Orion’s asset data.

Tembo also has the right to sub-underwrite a further equity raise within three months of the placement, if required.

Orion will ask its shareholders on Monday at a meeting to approve the acquisition of Agama Exploration & Mining, giving it a 73.3% stake in the Prieska copper mine and Marydale gold-copper project in South Africa.

Orion chairman Denis Waddell said the company needed to have the proceeds of the convertible note issue in the bank by next Wednesday to complete the transaction.

“Tembo has provided us with the flexibility of having the proceeds to settle on the purchase through this initial investment, while also paving the way to broader investment, subject to shareholder approval and completion of due diligence to become a cornerstone investor in Orion,” he said.

The Prieska underground project has historical production of about 430,000 tonnes of copper and 1 million tonnes of zinc from the processing of about 47Mt of sulphide ore.

Orion aims to delineate its’ maiden resource for the project shortly.

Orion shares jumped as high as 2.3c this morning, but last traded 5% higher at 2c.