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Orion Minerals Ltd (ASX:ORN)

ALERT: Price-sensitive ASX Announcement for ORN
Current share price for ORN : $0.022 -0.003 (-12%)+
Announcement
Release
19 Oct 2026 8:42AM
Price at Release
$0.025
Full Release
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Summary
Orion Minerals Limited announced that the US$40 million Tranche A financing from Glencore for the Prieska Copper Zinc Mine in South Africa’s Northern Cape is now unconditional after final concentrate offtake and intercreditor agreements were executed and all conditions precedent were satisfied, allowing development of the Uppers Mine to commence. The first drawdown is expected by the end of October 2026 and will support key development contracts, site mobilisation and construction, with first copper and zinc production from the Uppers targeted by the end of 2027. Orion said development preparations are advanced, including appointing Torque Africa for drilling and ENPROTEC to deliver the 20,000 tonnes per month Uppers concentrator under a Build-Own-Operate-Transfer arrangement, while construction of the accommodation village can now begin. The broader financing package includes a conditional US$210 million Tranche B for the Deeps mine, including up to US$50 million for early works subject to conditions, and Orion continues discussions with funding partners to secure the remaining funding required. The facility is to be repaid through concentrate sales under linked offtake arrangements, carries first-ranking security pari passu with Triple Flag Precious Metals, can be repaid early without penalty, and is backed by Orion’s guarantee, while the offtake covers 100% of Uppers bulk concentrates for five years and 100% of Deeps copper and zinc concentrates for at least 10 years each on competitive market-based terms.
Key Points
  • US$40 million Tranche A Glencore funding for Prieska is now unconditional.
  • The funding milestone clears the way for development of the Uppers Mine at the Prieska Copper Zinc Mine.
  • First drawdown is expected by the end of October 2026.
  • First copper and zinc production from the Uppers Mine is targeted by the end of 2027.
  • Torque Africa has been appointed as drilling contractor.
  • ENPROTEC has been selected to deliver the 20,000 tonnes per month Uppers concentrator under a Build-Own-Operate-Transfer arrangement.
  • Tranche A funds will support development contracts, site mobilisation, construction activities and the accommodation village.
  • US$210 million Tranche B financing for the Deeps remains conditional.
  • Tranche B includes potential early access to US$50 million for Deeps early works subject to conditions.
  • The prepayment facility is to be settled through sales and delivery of Prieska bulk, copper and zinc concentrates under linked offtake agreements.
  • The facility has first-ranking security pari passu with Triple Flag Precious Metals.
  • Orion will guarantee PCZM’s obligations under the prepayment facility.
  • The offtake covers 100% of Uppers bulk concentrates for five years.
  • The offtake covers 100% of Deeps copper concentrates for a minimum of 10 years.
  • The offtake covers 100% of Deeps zinc concentrates for a minimum of 10 years.
  • Offtake terms include competitive market pricing, benchmark treatment and refining charges, delivery flexibility and an option for advance sales and payments for stockpiled concentrates.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.