Orion Minerals Secures Landmark US$250m Glencore Facility for Prieska Development

About Orion Minerals Limited

Orion Minerals Limited (ASX: ORN) is an Australian- and South Africa-focused base metals developer advancing a portfolio of copper and zinc assets in the Northern Cape province of South Africa. Listed on both the ASX and JSE, the company is best known for the Prieska Copper Zinc Project, a high-grade, long-life asset with established infrastructure and a history of prior production.

Over recent years, Orion has progressed Prieska through definitive feasibility, permitting and funding preparation, positioning the project as one of the most advanced undeveloped copper–zinc opportunities in the region. The signing of a landmark prepayment facility with Glencore represents a decisive step forward, enabling Orion to move confidently into construction and early development activities.

Details of the Glencore Prepayment Facility

Orion confirmed that its subsidiary, Prieska Copper Zinc Mine (Pty) Ltd, has executed a binding agreement with a wholly owned subsidiary of Glencore plc for a US$250 million prepayment facility. The funding is linked to the future sale of bulk, copper and zinc concentrates from the Prieska operation and is structured in line with comparable international mining prepayment transactions.

The facility will be deployed in two tranches. Tranche A, totalling US$40 million, will fund the construction and start-up of the Prieska Uppers, while Tranche B of US$210 million will support development of the Deeps. Tranche B includes provision for an early drawdown of up to US$50 million to commence early works, subject to satisfaction of agreed conditions.

Settlement of the facility will occur through delivery of concentrates under linked offtake agreements, with Glencore receiving a market-related return that steps down once commercial production is declared.

Funding Structure and Key Terms

Consistent with industry norms, the prepayment facility includes several features designed to balance risk and flexibility. The return payable to Glencore will be settled monthly and capitalised until approximately 18 months after first production from the Uppers. Importantly, Orion retains the ability to repay the facility early without penalty, providing optionality should alternative funding or refinancing opportunities emerge.

The facility is secured on a first-ranking, pari passu basis alongside other secured lenders at the project level, with Orion providing a corporate guarantee. Standard undertakings, covenants and warranties apply, reflecting the scale and strategic importance of the transaction.

A number of conditions precedent remain, including regulatory approvals, finalisation of intercreditor arrangements with existing financiers and completion of linked offtake agreements for bulk, copper and zinc concentrates.

Prieska Development Timeline

With funding now largely de-risked, Orion is preparing to move Prieska into construction. Management indicated that first production from the Uppers is expected approximately 13 months after closing of the prepayment facility, which is now anticipated toward the end of March 2026. As a result, first concentrate production is forecast for the end of the March quarter 2027.

Early drawdown from Tranche B is expected to allow Orion to begin preparatory works on the Deeps while Uppers construction is underway, accelerating the overall development schedule and optimising capital efficiency.

The staged development approach is designed to bring initial production on line sooner while progressively unlocking the deeper, higher-value portions of the orebody.

Strategic Importance of the Glencore Partnership

Management described the agreement as a landmark moment for Orion, noting that partnering with Glencore provides both financial certainty and operational credibility. As one of the world’s largest diversified commodities groups, Glencore brings deep marketing expertise and global reach, particularly in copper and zinc supply chains.

The partnership supports Orion’s long-term strategy of becoming a reliable supplier of critical base metals at a time when global demand for copper and zinc is being driven by electrification, energy transition and infrastructure investment.

Glencore has also highlighted its support for the restart of copper mining in South Africa’s Northern Cape, underscoring the broader regional significance of the Prieska project.

Broader Portfolio and Exploration Optionality

Beyond Prieska, Orion continues to advance its broader Northern Cape portfolio. Exploration and optimisation programs at the Okiep Copper Project are ongoing, while the company’s participation in the BHP Xplor program further highlights the scale and potential of its regional landholding.

Management views these assets as longer-dated growth options that could complement Prieska once the company transitions into steady-state production and cash generation.

Market Context

Copper and zinc markets remain structurally supported by long-term demand drivers, including renewable energy, grid infrastructure and electrification. While short-term pricing can be volatile, high-quality, long-life projects with existing infrastructure are increasingly scarce.

Against this backdrop, Prieska’s advanced status, scale and funding progress position Orion favourably as it enters the next phase of its growth journey.

Outlook

Looking ahead, Orion’s focus will shift toward satisfying remaining conditions precedent, closing the prepayment facility and mobilising construction teams at Prieska. Execution risk remains, but the funding milestone significantly reduces development uncertainty and enhances visibility over the project’s timeline.

As construction progresses and first production approaches, Orion is expected to attract increased attention as one of the few copper–zinc developers transitioning into production over the medium term.