Orion Minerals secures unconditional US$40m financing from Glencore
The funding will support the development of the Prieska Copper Zinc Mine in the Northern Cape, with first production from the Uppers Mine targeted for the end of 2027
Orion Minerals has announced that it has successfully secured unconditional US$40 million Tranche A financing from Glencore plc.
The funding is for the development of its flagship Prieska Copper Zinc Mine (PCZM), situated in the Northern Cape, one of South Africa’s major mining provinces.
This milestone comes after the company finalised and executed all outstanding documentation and satisfied all remaining conditions precedent to Tranche A under the financing and offtake arrangements entered into by PCZM, as announced on February 9, 2026.
It is reported that the first drawdown under the US$40 million Tranche A facility is expected by the end of October, enabling Orion to commence key development activities at PCZM, with first production from the Uppers Mine targeted for the end of 2027.
“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,” said Orion’s Managing Director and CEO, Tony Lennox.
Under the terms of the facility, Glencore will receive a market-related return, with the rate stepping down once commercial production is declared. The return will be settled monthly and capitalised until approximately 18 months after first production from the Uppers Mine.
Lennox added that the development of PCZM is closely aligned with the company’s purpose.
PCZM may also settle the prepayment facility at any time without penalty. Repayment will take place through the sale and delivery of bulk, copper and zinc concentrates from the mine under the linked offtake arrangements. The facility will be secured on a first-ranking basis, pari passu with Triple Flag Precious Metals, while Orion will guarantee PCZM’s obligations under the facility.
Meanwhile, Toby Spittle of Glencore said the company was pleased to assist Orion Minerals with financing to bring Prieska back to life and make it South Africa’s next copper producer. He added that Glencore looked forward to continuing its relationship with Orion and marketing production from Prieska.
