Orion’s US$87m funding package for Prieska Copper-Zinc Mine

Orion has announced that it has taken a pivotal step towards the development of its flagship Prieska Copper-Zinc Mine (Prieska Project) in South Africa’s Northern Cape Province after signing non-binding term sheets with TF R&S Canada Ltd. and Triple Flag International Ltd.(together Triple Flag), for a US$87 million secured funding package.
Key points:

  • Significant funding package for the Prieska Copper-Zinc Mine negotiated with Canadian streaming and royalty finance company, Triple Flag Precious Metals.
  • Non-binding term sheets have been signed and are now being advanced under exclusivity to definitive agreements, expected during Q3 CY2022.
  • US$80 million (~A$110 million) Stream Funding to be advanced against the delivery of 84% of future gold and silver by-product production. Orion will also receive payments of 10% of the delivered precious metal value at spot gold and silver at the time of delivery.
  • The Stream Funding is conditional on the mine development being fully-funded, finalisation of an executable mine plan to Triple Flag’s satisfaction and, if required, South African regulatory approvals.
  • An additional A$10 million (~US$7 million) to be advanced against calculated payments equal to 0.8% of gross revenue from future mineral sales.
  • The A$10 million funding is conditional on Orion securing an additional A$20 million in funding for the commencement of mine dewatering and, if required, South African regulatory approvals.

The US$87 million funding package, if concluded, will underpin the completion of a Feasibility Study for early mining at Prieska (refer ASX/JSE release 20 January 2022) and to commence mine dewatering and mine development.

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