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By Lindiwe TsoboOrion Minerals expects construction of its Prieska Copper Zinc Mine in the Northern Cape to begin after receiving the first portion of a financing package from Glencore.The company said on Friday it had made progress in meeting the outstanding conditions attached to the $250m financing and offtake agreements signed with Glencore earlier this year. Initial funding is expected to be available by the end of August, enabling the start of construction of the mine’s upper section.Orion said it had received approval from the Reserve Bank and was finalising the remaining financing and off-take agreements required so that the Glencore funding can be drawn.The remaining portion of the financing package remains subject to Glencore securing additional funding.“We are pleased that the conditions required to access the first tranche of the Glencore financing agreement are nearing completion, which will allow us to begin construction at Prieska,” said CEO Tony Lennox.Orion expected to start producing copper and zinc about 13 months after the first portion of the financing closes, Lennox said. In its June quarterly activities report, also released on Friday, Orion said work at Prieska continued to advance project planning while financing arrangements were being finalised.At its Okiep Copper Project, also in the Northern Cape, the company said recent drilling at the Flat Mine East prospect confirmed the continuity of copper zones and showed further exploration potential.The company also raised A$15.4m (about R178m) during the quarter to support work on its projects. Separately, the Industrial Development Corporation converted its R344.5m convertible loan into equity in Prieska Copper Zinc Mine Holding Company, the entity that owns the Prieska project, giving it a 23.8% stake.Orion ended the June quarter with A$14.45m in cash.
