Orion Minerals signs non-binding term sheet agreement with Glencore

Core Viewpoint - Orion Minerals' subsidiary, Prieska Copper Zinc Mine (PCZM), has entered a non-binding term sheet agreement with Glencore for financing and concentrate offtake, marking a significant step towards production [1][5]. Financing Structure - The financing agreement consists of two tranches: - Tranche A is A$40 million for construction and start-up of the Uppers at Prieska [1][3]. - Tranche B ranges from A$160 million to A$210 million for construction and start-up at the Deeps, with up to A$50 million available for early drawdown under certain conditions [2][6]. Conditions for Funding - Several conditions must be satisfied before funding can proceed, including Glencore's due diligence, an intercreditor agreement with current secured lenders, and finalization of binding legal documentation [2]. Drawdown and Repayment Terms - The initial drawdown for Tranche A is scheduled for November 2025, with interest payable quarterly and the option to capitalize interest for up to 18 months post-initial production [3]. - PCZM can repay the facilities early without penalties, and Glencore can offset amounts owed under the offtake agreement against amounts owed under the facilities agreement [3]. Offtake Agreement Details - The offtake agreement ensures competitive market pricing and terms, securing 100% of bulk concentrates from the Uppers for five years and 100% of copper and zinc concentrates from the Deeps for ten years [4]. Strategic Importance - The funding from Glencore is seen as a pivotal moment for Orion, enabling the transition to a producer and facilitating early works on the Deeps in line with the definitive feasibility study [5][6].