Orion Minerals, Australia's Orion Minerals, signs agreement with Glencore for funding of up to $250 Million

Orion Minerals, based in Australia, announced on Wednesday that it had signed a nonbinding term sheet for funding of $200-$250 millions for the Prieska copper and zinc project in South Africa.

The deal, according to the diversified metal developer, includes an offtake contract with Glencore, which will allow it to sell 100% zinc and copper concentrates from the mine over a five-to-10-year period.

Orion will receive funding in two tranches to begin construction at the mine and for early work. The first drawdown is scheduled in November.

The company stated that the first tranche will allow Orion to quickly move into first production and the first cash flow of the project.

Orion said that Glencore had already begun the due diligence process.

Tony Lennox, the chief executive of the company, said that the discussions would continue with current funding partners. (Reporting and editing by Shinjini Ganuli and Alan Barona; reporting by Nikita Marie Jino in Bengaluru)

(source: Reuters)