Orion Minerals said on Monday that Glencore’s US$40 million Tranche A for its Prieska mine in the Northern Cape is now unconditional.

The money clears the way to start building the Uppers mine. Orion, which is listed on the ASX and the JSE, said the final concentrate offtake and intercreditor agreements have been signed and all remaining conditions are met. It expects the first drawdown by the end of October and is targeting first copper and zinc production from the Uppers by the end of 2027.

What the money pays for

Prieska Copper Zinc Mine (Pty) Ltd, Orion’s subsidiary, agreed the financing and offtake arrangements with Glencore, as announced on 9 February 2026. Tranche A is US$40 million of the US$250 million facility. The US$40 million goes to construction and start-up of the Uppers mine.

Orion said it has chosen Torque Africa as its drilling contractor, with the drilling meant to support geotechnical work and the final mine design before mining starts. ENPROTEC will deliver the 20,000 tonnes a month Uppers concentrator under a build-own-operate-transfer arrangement. Orion said the finalised funding lets it sign these contracts and begin on the accommodation village.

The Deeps are not yet funded

The US$210 million Tranche B is meant for the construction and start-up of the Deeps mine. Orion said it remains conditional on, among other things, the Deeps being fully funded and Glencore securing extra third-party funding to support its prepayments. Up to US$50 million of Tranche B may be drawn early for early works on the Deeps if certain conditions are met.

Orion said it will keep talking to existing and new funding partners to raise the remaining finance.

How Glencore is repaid

The facility is a prepayment, so Glencore is repaid in concentrate rather than cash. Orion said the facility settles through the sale and delivery of bulk, copper and zinc concentrates under the linked offtake terms, and that the mine company may settle it at any time without penalty.

Glencore’s return is described as market-related, with a step-down once commercial production is declared. Orion said the return is settled monthly and capitalised until about 18 months after first production from the Uppers. The facility has first-ranking security equal in rank to that held by Triple Flag Precious Metals, and Orion guarantees the mine company’s obligations.

On the offtake side, Glencore takes 100% of the Uppers’ bulk concentrate for five years, up to the Uppers’ total production. It also takes 100% of the Deeps’ copper concentrate and 100% of its zinc concentrate for at least 10 years each. Pricing follows industry benchmarks and the treatment and refining charges set by large producers and smelters.

What the companies said

Tony Lennox, Orion’s managing director and chief executive, said finalising the agreements was a “lengthy and detailed” process. He said the teams used the time to advance engineering, finalise development plans and pick contractors.

Toby Spittle of Glencore said the company was pleased to help Orion “bring Prieska back to life and become South Africa’s next copper producer”.

The release does not give a capital cost for the Uppers or an output forecast in tonnes of metal. Other recent mining deals on the site include shareholders approving the sale of the Hillside smelter to Alcoa and Valterra’s purchase of half of Tharisa’s PGM concentrate.

The next marker is the first Tranche A drawdown, which Orion expects by the end of October.