• Orion Minerals signs non-binding funding deal with Glencore for Prieska project.
• Financing of $200–250 mln planned in two stages, tied to 10-year supply deal.
• Mine expected to produce 22,000 tons copper and 65,000 tons zinc annually.

Orion Minerals announced on September 17 that it has signed a non-binding financing agreement with Swiss trading firm Glencore. Through the deal, Orion aims to secure between $200 million and $250 million to advance construction of its Prieska copper-zinc project in South Africa, in exchange for a supply contract with its partner.

The funding will be structured in two tranches: the first $40 million to launch initial development, and the second between $160 million and $210 million to build Phase 2 of the mine. Alongside the loans, Orion and Glencore are expected to finalize an offtake agreement covering 100% of the mine’s output for 10 years.

According to a feasibility study published in March, Prieska is projected to produce 22,000 tons of copper concentrate and 65,000 tons of zinc annually once fully operational. The mine’s lifespan is estimated at 13.2 years, with total development costs pegged at A$578 million (about $385 million).

Completion of the agreement with Glencore remains subject to due diligence and other conditions, with both sides aiming to reach a binding deal within four to six weeks. In the meantime, Orion says it is also in talks with other potential financiers. The mine is scheduled to come on stream 13 months after construction begins.