Orion (ASX: ORN) secures Glencore-backed funding boost for Prieska restart

Key Highlights

• Orion signs binding US$250 million prepayment facility with Glencore
• Funding supports Uppers and Deeps development at Prieska Copper-Zinc Project
• First concentrate production targeted for Q1 2027
  
   

Orion Minerals (ASX: ORN) has taken a major step toward restarting its historic Prieska Copper Zinc Project after its subsidiary, Prieska Copper Zinc Mine (PCZM), signed a binding US$250 million prepayment facility with a wholly owned subsidiary of global commodities giant Glencore.

The facility is tied to the future sale of copper and zinc concentrates from the South African project and is structured in two stages, reflecting the project’s phased development strategy. The first US$40 million tranche is earmarked for the construction and start-up of the Uppers section, while the US$210 million second tranche is designed to support development of the deeper underground operations, including the potential early drawdown of up to US$50 million to fund initial works.

For Orion, the agreement does more than secure capital. It also anchors a long-term commercial partnership with one of the world’s largest commodity traders, providing both financing certainty and an established marketing channel for future concentrate production. In the mining sector, such structured prepayment arrangements often signal growing confidence in a project’s development pathway, particularly when backed by major global trading houses.

Chief Executive Officer Tony Lennox described the funding package as a defining milestone in Orion’s transition toward production. He said the company expects first production from the Uppers approximately 13 months after the facility closes, currently anticipated around the end of March 2026, noting that finalisation of the agreement and delivery timing of long-lead equipment slightly adjusted the earlier schedule.

“Consequently, first concentrate is now expected at the end of Q1 2027,” Lennox said.

He added that the partnership with Glencore marks the beginning of what the company hopes will be a long-term relationship, while Orion continues advancing exploration and optimisation work across its broader Northern Cape portfolio, including the Okiep Copper Project, where recent initiatives such as participation in the BHP Xplor program highlight the region’s wider development potential.

Source: ORN ASX Announcement

As construction preparations move closer to full execution, the financing agreement places Orion in a stronger position to advance the Prieska restart at a time when global demand for copper and zinc continues to be supported by electrification, infrastructure expansion, and industrial growth trends.

Orion Minerals (ASX: ORN) shares traded around $0.039, up roughly 2.6% on the day, extending the stock’s strong momentum following the announcement of the US$250 million Glencore-backed prepayment facility tied to the Prieska Copper Zinc Project.