Orion Minerals’ (ASX:ORN) concentrate offtake deal with Glencore (LSE:GLEN) is set to be executed in binding documentation by mid-December 2025, as a part of a greater financing and offtake deal for the Prieska Project in South Africa.
Under the non-binding term sheet executed with Orion’s subsidiary Prieska Copper Zinc Mine in September, Glencore is now in its final stages of technical and financial due diligence ahead of providing up to US$250 million ($385.54 million) for the project’s development.
Glencore will provide US$40 million in tranche one for construction and startup costs of the Uppers at Prieska. The first drawdown is expected this month.
Tranche two includes between US$160 to US$210 million for the same costs at the Deeps at Prieska.
From this second tranche, US$50 million may be drawn ahead of schedule to begin early works at Deeps.
Historically mined between 1970-1990, the Prieska Mine has a recorded production of more than 430,000 tonnes of copper and 1 million tonnes of zinc.
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
