Australian mining company Orion Minerals is set to receive up to $250 million in funding after signing a non-binding deal with Glencore.
Reuters reported that Orion confirmed on Wednesday it had signed a non-binding term sheet with a unit of Glencore, with funding between $200 million–$250 million for its Prieska copper-zinc project, located in South Africa.
The deal reportedly includes an offtake agreement with Glencore to sell 100% of zinc and copper concentrates from the South African mine, for up to a decade..
The funding will go to Orion in two stages, for the construction and commencement of early works at the mine and conditions for the funding include the completion of satisfactory due diligence.
“In parallel with the due diligence process with Glencore, we will continue discussions with our current funding partners,” said the company’s chief executive, Tony Lennox.
