Orion Minerals’ (ASX:ORN) subsidiary Prieska Copper Zinc Mine has executed a binding agreement with Glencore’s (LSE:GLEN) wholly owned subsidiary for a US$250 million ($355 million) prepayment facility.
The agreement covers the sale of bulk, copper, and zinc concentrate from the Prieska Copper Zinc Project located in South Africa, covering US$40 million in tranche one for the construction and start-up of the Uppers, and US$210 million in tranche two.
Tranche two will cover the construction and start-up of the Deeps, including a potential early drawdown of up to US$50 million for early works.
Orion CEO Tony Lennox describes the funding as a “landmark agreement for Orion”.
“We expect first production from the Uppers 13 months after closing of the prepayment facility, which is now expected around the end of March 2026 due to a short delay in finalising this agreement and the delivery timing of long lead time equipment orders,” Lennox says.
“Consequently, first concentrate is now expected at the end of Q1 2027.
“We are delighted to be partnering with Glencore, along with our other key funding and equity partners, and we look forward to a long and mutually beneficial relationship.
“While PCZM (Prieska Copper Zinc Mine) is on the brink of construction, followed by production, our exploration and optimisation programs at the Okiep Copper Project are also progressing well, and the BHP Xplor program, announced last week, highlights the exceptional potential of our broader Northern Cape portfolio.”
As reported by Mining.com.au in December, the Prieska Mine has a recorded production of more than 430,000 tonnes of copper and 1 million tonnes of zinc from historical mining between 1970-1990.
The Prieska Mine is listed as one of the world’s top 30 volcanogenic massive sulphide base metal deposits.
Write to Maddison Elliott at Mining.com.au
Images: Orion Minerals
