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Investing.com -- Orion has agreed to purchase a 25% joint venture stake in the Santo Domingo project for $225 million in cash, representing a price-to-net asset value ratio of 0.6x.
This valuation comes in below analyst expectations of 1.0x and is lower than the 1.2x ratio that HBM received for its Copper World project.
Several factors may account for the discounted valuation, including jurisdiction concerns, project complexity, and notably, the inclusion of a full buyback option in the agreement.
The Santo Domingo project faces several key milestones before moving forward. These include securing project financing, completing detailed engineering work, and reducing debt levels ahead of the expected project sanctioning in the second half of 2026.
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