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Orion Signs US$250M Prepayment Facility with Glencore to Fund Prieska Development
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
Orion Signs US$250M Prepayment Facility with Glencore to Fund Prieska Development
Landmark agreement paves the way for development of the Prieska Copper Zinc Project to proceed
Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to announce that its subsidiary, Prieska
Copper Zinc Mine (Pty) Ltd (PCZM), has executed a binding prepayment agreement with a wholly owned
subsidiary of Glencore plc (Glencore) for a US$250 million prepayment facility linked to the sale of bulk, copper
and zinc concentrates from the Prieska Copper Zinc Project in South Africa (Prepayment Facility).
The facility will fund the Uppers Development and partially fund the Deeps Development at Prieska, marking a
significant step in Orion's transition to a fully operational company.
As previously announced on 17 September 2025, the Prepayment Facility will be made available to PCZM as
follows:
• Tranche A – US$40 million: To fund the construction and start-up of the Uppers; and
• Tranche B – US$210 million: To fund the construction and start-up of the Deeps, including the potential for
an early drawdown of up to US$50 million to commence early works (Early Drawdown), based on certain
conditions being fulfilled.
Tony Lennox, Orion Managing Director and CEO said:
"This is a landmark agreement for Orion. Tranche A will fund the Uppers Development while the early drawdown
of Tranche B will allow us to start work on the Deeps. 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. 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. Our execution team is ready and waiting to deliver
the Uppers, followed by early works at the Deeps.
"While PCZM 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. Orion is at one of the most exciting stages of its
growth journey."
Glencore's Toby Spittle, Copper Marketing, commented:
"We are pleased to have reached a binding agreement with PCZM and will work closely with Orion on the
outstanding conditions. We are excited to be part of the restart of copper mining in South Africa's Northern Cape
and look forward to a long future of working together."
Key Terms of the Facility
• Market-related return to be received by Glencore that is consistent with transactions of this nature and
which includes a step-down in the return rate once commercial production is declared. The return is settled
monthly and is capitalised until approximately 18 months after first production from the Uppers;
• PCZM may at any time repay the Prepayment Facility without penalty;
• Settlement of the Prepayment Facility occurs through the sale and delivery of bulk, copper and zinc
concentrates from the Prieska Copper Zinc Mine in terms of the linked offtake arrangements;
• The Prepayment Facility has first ranking security pari passu with other PCZM secured lenders;
• Orion will guarantee the obligations of PCZM under the Prepayment Facility; and
• Undertakings, covenants, warranties and terms and conditions as would be standard and customary for
transactions of this nature.
Consistent with these types of transactions, there are a number of conditions precedent, including:
• South African Reserve Bank and other regulatory approvals;
• conclusion of an updated intercreditor agreement between Glencore, Triple Flag and the Industrial
Development Corporation of South Africa;
• conclusion of the linked offtake agreements with Glencore for the bulk concentrate for the Uppers and
the copper and zinc concentrates for the Deeps;
• finalisation of the scope of work and spend allocation in relation to the Uppers; and
• as a condition to Tranche B, Glencore securing non-recourse funding from third parties to enable it to fund
its prepayments in relation to Tranche B.
For and on behalf of the Board.
Tony Lennox
Managing Director & CEO
9 February 2026
ENQUIRIES
Investors Media JSE Sponsor
Tony Lennox – Managing Director & CEO Nicholas Read Monique Martinez
Denis Waddell – Chairman Read Corporate, Australia Merchantec Capital
T: +61 (0) 3 8080 7170 T: +61 (0) 419 929 046 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: nicholas@readcorporate.com.au E: monique.martinez@merchantec.com
Disclaimer
This release may include forward-looking statements. Such forward-looking statements may include, among other things,
statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results,
capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates, and are or may be
based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.
These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-
looking statements inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Orion. Actual results and developments may vary materially from those
expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-
looking statements. Orion makes no undertaking to subsequently update or revise the forward-looking statements made in this
release to reflect events or circumstances after the date of this release. All information in respect of Exploration Results and
other technical information should be read in conjunction with Competent Person Statements in this release (where
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• disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in
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information in this release, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or
implied in any forward-looking statement; and
• disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for
negligence).
Date: 09-02-2026 08:21:00
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