JSE- and ASX-listed Orion Minerals’ subsidiary, Prieska Copper Zinc Mine (PCZM), has executed a binding prepayment agreement with a wholly-owned subsidiary of Glencore for a $250-million prepayment facility linked to the sale of bulk, copper and zinc concentrates from the Prieska project in South Africa’s Northern Cape.

The facility will fund the Uppers development and partially fund the Deeps development at Prieska, highlighted as a significant step in Orion’s transition to a fully operational company.

As previously announced on September 17, 2025, the prepayment facility will be made available to PCZM in two tranches.

The $40-million Tranche A will fund the construction and startup of the Uppers development; and the $210-million Tranche B the construction and startup of the Deeps development, including the potential for an early drawdown of up to $50-million to start early works (early drawdown), based on certain conditions being fulfilled.

Orion MD and CEO Tony Lennox highlighted this as a “landmark agreement” for the company.

“We expect first production from the Uppers 13 months after closing of the prepayment facility, which is now expected around the end of March 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 the first quarter of 2027,” he informs.

Consistent with these types of transactions, there are a number of conditions precedent, including South African Reserve Bank and other regulatory approvals; the conclusion of an updated intercreditor agreement between Glencore, Triple Flag and the Industrial Development Corporation of South Africa; the conclusion of the linked offtake agreements with Glencore for the bulk concentrate for the Uppers and the copper and zinc concentrates for the Deeps developments; the finalisation of the scope of work and spend allocation in relation to the Uppers development; 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.