Orion moves Prieska closer to construction after Glencore funding clears

Glencore funding unlocks Prieska construction

Orion Minerals Ltd (ASX:ORN) has crossed the most immediate financing hurdle for its Prieska copper-zinc project, with Glencore’s US$40 million Tranche A facility becoming unconditional after the September quarter. Final financing, concentrate offtake and intercreditor documents were executed in early October, with the first drawdown expected in early November.

The milestone puts the Uppers Mine at Prieska on a construction track. Orion plans a ground-breaking ceremony and early process works in December, before full construction begins in January 2027. The company said it is continuing detailed execution planning, long-lead procurement, contractor selection and operational readiness work, including staged electricity discussions with Eskom.

The announcement formalises the funding milestone reported in October Glencore financing, when the US$40 million tranche became unconditional and the Uppers Mine was cleared to proceed. The larger structure is not yet fully secured: Tranche B, worth US$210 million and intended for the Deeps at Prieska, remains conditional, including on Glencore obtaining third-party non-recourse funding for its prepayments. Up to US$50 million of that tranche may be available for early Deeps works if further conditions are met.

Cash runway remains tight before project funding arrives

Orion finished the quarter with A$9.618 million in cash, down from A$14.460 million three months earlier. Operating activities used A$3.057 million, while exploration and evaluation expenditure accounted for a further A$1.293 million. On the reporting-period figures, the company calculated 2.21 quarters of funding and reported no unused facilities at quarter-end.

That cash position predates the expected Glencore drawdown, so the next financing receipt is a practical test of the transition from project developer to construction company. The filing does not disclose an updated construction capital requirement or revised project economics. It also records a management change at a sensitive point in the funding process: Peet van Coller stepped down as chief financial officer, with Stephen Rowse appointed interim CFO from 22 October.

Okiep moves into optimisation and new drilling

At the separate Okiep Copper Project, Orion has secured approval for Phase Two of an optimisation review of its March 2025 definitive feasibility study. Phase One examined mining methods, orebody sequencing, processing configuration, ore handling and infrastructure, with the stated aim of improving the project’s development value.

The next drilling campaign is scheduled for the December quarter and will comprise 34 holes totalling about 8,000 metres at Flat Mine East and Flat Mine South. Orion is targeting extensions to high-grade mineralisation at depth, as well as shallower up-dip zones that could potentially support earlier mine development. The program builds on the Flat Mine East drilling extension reported earlier this year, but the filing does not provide a new resource estimate or updated economics.

Construction execution is the next test

Orion’s near-term milestones are unusually concrete for a development-stage miner: receive the Tranche A drawdown, begin early works, appoint the Uppers mining contractor and commence construction. Three contract mining companies have been shortlisted, with appointment expected in the first quarter of 2027. First bulk copper concentrate production remains targeted for the end of 2027, although that and the construction timetable are forward-looking targets rather than completed outcomes.