Orion expects first $40m Prieska copper-zinc funding drawdown by end-August

Orion Minerals said it has made substantive progress in satisfying the conditions precedent attached to its financing and offtake agreements with Glencore, with the first funding tranche for the Prieska copper-zinc mine expected to be available for drawdown by end-August. In February, Orion announced a $250 million Glencore prepayment facility in two tranches: $40 million for the construction and start-up of the Prieska Uppers development, and $210 million for the construction and start-up of the Deeps development.

As part of the conditions precedent, Orion has received approval from the South African Reserve Bank. The proposed intercreditor agreement between Glencore and Triple Flag Precious Metals is in advanced final form but remains subject to execution, while the Orion-Glencore offtake agreements are also in final form and remain subject to execution. The facility will be settled through sales and deliveries of bulk copper and zinc concentrates from Prieska. Orion said that, once Tranche A closes, it expects to move into execution of the Uppers development and become a producer 13 months later.