Orion awaiting $5.6m owed by investor

Orion Minerals Group, a Chilean iron ore business bought in a reverse takeover by New Zealand company RLV No3, is confident it will receive US$3 million ($5.6 million) owed by a Chinese investor.

The NZAX-listed firm also said it posted a loss of US$432,000 for the year ended December, and still expected iron ore production and export to begin in the third quarter of 2009.

However, that depended on conditions improving in global iron ore markets and the completion of the company's capital raising programme, Orion chairman Roger Gower said.

In December, RLV bought all of the shares in Minera Varry, which owns an iron ore mining concession in Chile, in a reverse takeover from Chilean vendor Inversiones Barriga.

Chinese metals trading business Fengli Group was to pay US$3 million to the company, but had earlier requested an extension for the payment to March 15 from February 28.

"We've negotiated an extension, we're working through with them in certain matters in respect of the payments, we don't expect it not to come through," Gower said.

The company had no need of the money owed until mining began, he said. "When we expand it to full-blown mining, then it'll obviously take a lot more cash."

- NZPA