Orion Minerals Ltd (ASX/JSE: ORN) has reached a critical stage in securing its latest financing deal with Glencore. The company confirmed that it has met several key conditions required to trigger the funding package, clearing a major hurdle for the development of the Prieska project in South Africa.

With approval now secured from the South African Reserve Bank, the company is moving toward the final steps of the process. An intercreditor agreement with Triple Flag Precious Metals is currently in an advanced state, while offtake agreements with Glencore have reached their final form. These updates signal that the transition from development to construction is moving forward as planned.

The company expects these milestones to make the Tranche A financing unconditional. If everything stays on the current schedule, the drawdown of these funds is expected by the end of August 2026. This capital is specifically earmarked to kick off the construction of the Uppers at the Prieska site, a pivotal move in the company’s transition toward becoming a producer.

"We are pleased that the conditions precedent for drawdown of Tranche A under the Glencore financing agreement are nearing satisfaction, which will allow us to move into the execution of the Uppers at Prieska. This will be a major milestone in the life of Orion, and we look forward to becoming a producer, which on the current timetable is expected to occur, 13 months after Tranche A of the financing closes."

— Tony Lennox, Managing Director and CEO

Beyond the immediate requirements for Tranche A, the company noted that progress continues on the second phase of the package. Tranche B of the financing involves Glencore securing non-recourse funding from third-party sources to support their prepayment obligations. While the first phase remains the priority for the upcoming month, this ongoing work on the secondary tranche indicates that the broader financial structure supporting the Prieska development is steadily advancing.

By meeting these requirements, management has provided a clearer runway for the Prieska project. Construction is set to begin as soon as the Tranche A funds are in hand, keeping the project on track to hit its operational targets. With the regulatory heavy lifting now largely behind them, the team is focused on finalizing the remaining documentation to ensure the funds can be accessed by the end of next month, setting the stage for the next year of construction and development at the mine site.

Read the full announcement: Glencore Prepayment Financing Agreement Progressing