Wrap Text
Orion Secures US$40M Glencore Funding for Prieska Mine 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 Secures US$40M Glencore Funding for Prieska Mine Development
Finalisation of financing and offtake agreements clears way for development of the Uppers Mine, targeting first
copper and zinc production by the end of 2027
• US$40 million Tranche A financing from Glencore now unconditional following execution of final
concentrate offtake and intercreditor agreements and satisfaction of all conditions precedent.
• Major development milestone for Orion, clearing the way for commencement of development
activities at the Prieska Copper Zinc Mine (PCZM) in South Africa’s Northern Cape.
• First drawdown of Tranche A funding expected by the end of October, enabling the Company to
progress key development contracts, site mobilisation and construction activities.
• Key contractors selected and development preparations well advanced, including Torque Africa
for drilling and ENPROTEC for delivery of the 20,000 tonnes per month Uppers Concentrator.
• First production from the Uppers Mine targeted by the end of 2027, positioning Orion to take a
significant step towards becoming a copper and zinc producer.
• US$210 million Tranche B financing remains conditional, with Orion continuing discussions with
funding partners to secure the remaining financing required for development of the Deeps mine to
proceed.
Orion Minerals Limited (ASX/JSE: ORN) (Orion or Company) is pleased to announce a major milestone in the
development of its flagship Prieska Copper Zinc Mine (PCZM) in South Africa’s Northern Cape, with the US$40
million Tranche A financing from Glencore plc (Glencore) now unconditional, clearing the way for the
commencement of development of the Uppers Mine.
The milestone follows the finalisation and execution of the outstanding documentation and satisfaction of all
remaining conditions precedent to Tranche A under the financing and offtake arrangements entered into by
Orion’s subsidiary Prieska Copper Zinc Mine (Pty) Ltd, as announced on 9 February 2026.
The first drawdown under the US$40 million Tranche A is expected by the end of October, enabling Orion to
commence key development activities at PCZM, with first production from the Uppers Mine targeted by the end
of 2027.
Over the past year, Orion has made significant progress at Prieska, with work focused on operational readiness,
detailed engineering and transitioning the project from planning to executable work packages. Torque Africa
has been appointed as the drilling contractor, with the drilling program structured to support geotechnical and
final mine design definition ahead of mining. ENPROTEC has been selected to deliver the 20,000tpm Uppers
concentrator under a Build-Own-Operate-Transfer arrangement. The finalisation of Tranche A of the funding will
enable these contracts to be executed and for the construction of the accommodation village to commence.
The US$210 million Tranche B of the financing remains conditional on, amongst other things, the Deeps being fully
funded and Glencore securing additional third-party funding to support its prepayments under Tranche B.
In parallel with commencing mobilisation of construction crews and equipment to site, Orion will continue to
engage with existing and new funding partners to secure the remaining project financing required to proceed
with development of the Deeps.
Orion’s Managing Director and CEO, Tony Lennox, commented:
“We are delighted to have concluded the financing and offtake agreements with Glencore, marking a major
milestone for Orion and a pivotal moment in our transition from explorer to developer and producer. While
finalising these agreements has been a lengthy and detailed process, our project and operations teams have
used this time productively to advance engineering, finalise development plans, select key contractors and
establish the systems and processes required for disciplined project execution.
“This puts us in a strong position to commence development activities, with a strong focus on safety, operational
readiness, cost control and project governance.
“The development of PCZM is closely aligned with Orion’s purpose of ‘Unlocking resources through people, to
improve the world’. The world continues to require ever increasing volumes of new copper and zinc production
to meet crucial energy transition goals and we look forward to bringing this important South African resource into
production and delivering long-term benefits for our shareholders, employees and local communities.”
Toby Spittle, Glencore, commented:
"We are pleased to assist Orion Minerals with financing for it to bring Prieska back to life and become South
Africa’s next copper producer. We look forward to our continued relationship with Orion and marketing its Prieska
production."
Summary of Agreements
The financing will be made available to PCZM as follows:
• Tranche A of US$40 million to be used for the construction and startup of the Uppers at Prieska; and
• Tranche B of US$210 million to be used for the construction and startup of the Deeps at Prieska, of which
US$50 million may be drawn early to commence early works on the Deeps, based on certain conditions
being fulfilled.
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, settle 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 Triple Flag Precious Metals;
• 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.
Key Terms of the Offtake:
• Competitive market pricing and payables terms including respective industry benchmarks;
• 100% of Bulk Concentrates from the Uppers for 5 years (subject to a maximum of Uppers total production);
• 100% of Copper Concentrates from the Deeps for a minimum of 10 years;
• 100% of Zinc Concentrates from the Deeps for a minimum of 10 years;
• Respective market Benchmark Treatment and Refining Charges, as set by large producers and large
smelters;
• Flexibility for global delivery in accordance with prevailing market conditions; and
• PCZM option for advance sales and payments for stockpiled concentrates.
For and on behalf of the Board.
Tony Lennox
Managing Director and CEO
19 October 2026
ENQUIRIES
Investors Media JSE Sponsor
Avishkar Nagaser Nicholas Read Monique Martinez
Executive: Corporate Communications Read Corporate, Australia Merchantec Capital
and Investor Relations
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 applicable). To the maximum extent permitted by law, Orion and any of its related bodies corporate and
affiliates and their officers, employees, agents, associates and advisers:
• disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in
expectations or assumptions;
• do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the
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: 19/10/2026 09:07:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
