Orion to secure $250 funding from Glencore for Prieska project

Orion Minerals is acceptable to unafraid a $250m binding prepayment installation from Glencore to enactment the improvement of its Prieska Copper Zinc Project successful South Africa.

The agreement, executed done Orion's subsidiary, Prieska Copper Zinc Mine (PCZM), involves the merchantability of bulk copper and zinc concentrates, facilitating the Uppers Development and partially backing the Deeps Development astatine the project.

This marks a important advancement successful Orion’s determination towards afloat operational status.

The prepayment facility, archetypal announced successful September 2025, comprises 2 tranches.

Tranche A provides $40m for the operation and start-up of the Uppers conception of the project. Tranche B offers $210m for the Deeps, with an enactment for an aboriginal drawdown of up to $50m if definite conditions are met.

Glencore's instrumentality connected the prepayment is market-related and includes a simplification successful rates erstwhile commercialized accumulation begins. The installation allows repayment astatine immoderate clip without penalty.

Settlement of the installation volition hap done the transportation of copper and zinc concentrates per linked offtake arrangements.

The statement holds first-ranking information alongside different secured lenders of PCZM, with Orion guaranteeing PCZM's obligations nether the facility.

Furthermore, respective conditions indispensable beryllium met earlier proceeding, including obtaining approvals from the South African Reserve Bank and different regulatory bodies.

An updated intercreditor statement betwixt Glencore, Triple Flag, and the Industrial Development Corporation of South Africa is required.

Additionally, linked offtake agreements for some Uppers and Deeps bulk concentrates indispensable beryllium concluded with Glencore.

Completion of enactment scope and expenditure allocation for Uppers is besides necessary.

For Tranche B activation, Glencore indispensable unafraid non-recourse backing from 3rd parties for its prepayments.

Orion Minerals managing manager and CEO Tony Lennox said: “This is simply a landmark statement for Orion. Tranche A volition money the Uppers Development portion the aboriginal drawdown of Tranche B volition let america to commencement enactment connected the Deeps.

“We expect archetypal accumulation from the Uppers 13 months aft closing of the Prepayment Facility, which is present expected astir the extremity of March 2026 owed to a abbreviated hold successful finalising this statement and the transportation timing of agelong pb clip instrumentality orders. Consequently, archetypal ore is present expected astatine the extremity of Q1 2027.”

"Orion to unafraid $250 backing from Glencore for Prieska project" was primitively created and published by Mining Technology, a GlobalData owned brand.

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