Orion Minerals accelerates funding as it aims for copper production by 2026

Tawanda Karombo

Northern Cape base metals developer, Orion Minerals, is now focused on project financing and concentrate offtake agreements following share placement and share purchase schemes this month as the company further develops its copper projects.

Orion’s latest capital raise comprised of a placement of 289 million shares and an agreement to convert outstanding loan amounts to equity through the issue of 233 million shares for R67 million.

Additionally, the copper mine is undertaking a share purchase plan “to be offered to provide eligible shareholders with the opportunity to subscribe for as much as R355 000 in in new shares” to raise  A$4 million. 

The share purchase plan opened this month and will close next week. Funds raised from the share placement and share purchase plan “will be used principally to partially fund the development” of Orion’s Prieska Copper Zinc Mine.

This includes ongoing dewatering and site works for mine development optimisation studies and for general working capital purposes.

After completion of these capital raise exercises, Orion is shifting focus over the next few months to finalising project financing.

“Key focus areas for the coming months: Our immediate priority is to finalise project financing and a concentrate offtake agreement for the Uppers. In parallel, work on project execution will gain momentum in the September 2025 quarter,” said Orion on Wednesday.

Tony Lennox, the company’s CEO said the company was keen to move into “a project execution phase,” specifically at the Prieska Copper Zinc Mine.

“Our pre-eminent agenda is achieving first concentrate production from Phase 1 (Uppers) at PCZM and dewatering the mine and completing other early works to prepare for development of Phase 2 (Deeps). Our goal is to have first concentrate production from the Uppers by Christmas 2026,” said Lennox.

The company was also concurrently viewing the definitive feasibility study for its Flat Mines project as a baseline that requires further optimisation over the coming months.

“In my first three months as CEO at Orion, I have been impressed by the upside potential at both PCZM and Okiep, and within Orion’s regional portfolio. A review of near-term and medium-term exploration upside for both PCZM and OCP is underway,” explained Lennox.

After the release of a definitive feasibility study for Prieska Copper Zinc Mine and the Okiep Copper Project Flat Mines Project in March, Orion has been concentrating on developing a project development and execution strategy as well as sourcing the required funding to enable the development of the projects over the quarter period to the end of June.

Orion intends to get the Uppers project of the Prieska Copper Zink Mine into production speedily, transitioning Orion into a producing mining company. 

Subsequently, the first bulk concentrate from the Uppers is planned to be 13 months after finalising funding, with Deeps concentrate expected 29 months later.

Funding discussions with the Industrial Development Corporation were ongoing, with processes underway to select service providers for the provision of renewable energy in the form of solar PV and battery-energy-storage.

BUSINESS REPORT