Orion Minerals Glencore US$40M Prieska Funding Unconditional

Orion Minerals (ASX:ORN) has finalised the offtake and intercreditor agreements that make Glencore's US$40 million first tranche of funding unconditional, allowing development of the Uppers Mine at its Prieska Copper Zinc Mine in South Africa to begin.

All conditions precedent to Tranche A under the financing and offtake arrangements announced on 9 February 2026 have been satisfied. First drawdown is expected by the end of October, enabling key development contracts, site mobilisation and construction of the accommodation village. Torque Africa has been appointed drilling contractor and ENPROTEC selected to deliver the 20,000tpm Uppers concentrator under a Build-Own-Operate-Transfer arrangement. First production from the Uppers Mine is targeted by the end of 2027. The prepayment facility is settled through the sale and delivery of concentrates under linked offtake arrangements, with a market-related return to Glencore that steps down once commercial production is declared and is capitalised until approximately 18 months after first Uppers production. Glencore takes 100% of Uppers bulk concentrates for 5 years and 100% of Deeps copper and zinc concentrates for a minimum of 10 years. Orion guarantees the facility.

The US$210 million Tranche B for the Deeps remains conditional, including on the Deeps being fully funded and Glencore securing additional third-party funding. The release does not state the return rate or the total cost of developing the Uppers.