Friday, 29 March 2024

Announcement

GENERAL: OMG: OMG - Pre Break Announcement

13 May 2013 16:46NZX
Pre-Break Announcement for a proposed change of the essential nature of the
business of Orion Minerals Group Limited

This announcement is a "Pre-Break Announcement" made in accordance with NZAX
Listing Rule 10.2.

Orion Minerals Group Limited ("OMG") is currently an investment company whose
principal asset is approximately USD$8.1 million of cash reserves.

OMG has been investigating a number of potential business acquisition
opportunities to invest in.

The Board of Directors of OMG has undertaken due diligence investigations in
respect of the prospective development of a scrap metal operation in Geelong,
Australia. Subject to the conditions contained in this announcement, OMG
proposes to commence the operation of a scrap metal business in the immediate
future ("Proposed Initiative"). The initial costs of the Proposed Initiative
to OMG are anticipated to be approximately USD$3.5 million.

The Proposed Initiative provides an opportunity for OMG to invest in, and
develop a new business from the "ground up" without any requirement to deploy
capital on acquiring goodwill, as would be the case if OMG were to acquire an
existing business.

The Pre Break Announcement discusses the financial implications and risks of
the Proposed Initiative, including the potential returns of the Proposed
Initiative and the Material Risks associated with the Proposed Initiative
which could have material adverse effects on the financial performance of the
Proposed Initiative.

The Board believes that the business can leverage off the scrap metal
industry expertise that cornerstone shareholder Fengli Group has in China and
throughout the Asia/Pacific region.

The Board believes that OMG can develop the Proposed Initiative into a
potentially cash flow positive and profitable business within a relatively
short time frame.
End CA:00236164 For:OMG    Type:GENERAL    Time:2013-05-13 16:46:02
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Orion Minerals Group
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