Private equity firm, Tembo Capital has disposed of its entire shareholding in JSE- and ASX-listed Orion Minerals after nearly 10 years as a cornerstone investor, selling its roughly 12% stake to existing shareholder, Thomas Borman and a prominent South African institutional investor, the company announced on October 9, 2026.

Tembo Capital CEO, David Street said the exit was driven by the fund approaching the end of its term and the imminent construction decision for Orion’s flagship, Prieska Copper-Zinc Mine in South Africa’s Northern Cape province.

“With the combination of the fund nearing the end of its term and the Prieska Copper Zinc Mine being very close to a construction decision, it is an appropriate time for the fund to exit,” Street said.

Tembo sold a total of 1.08 billion shares — 12.1% of Orion — for approximately A$20.55 million at 1.9 Australian cents per share, a 16% discount to Orion’s closing ASX price of 2.25 cents at the time.

Just under half the shares were acquired by Tom Borman, a former Orion board member and current financial backer, who has now lifted his stake to 14.32%. The balance was sold to an undisclosed second party, identified only as a South African institution and recent shareholder.

Orion Managing Director and CEO, Tony Lennox expressed gratitude for Tembo’s long-term backing, which began in early 2017 with a A$3 million share placement. “Orion would not be in its current position without Tembo’s backing,” Lennox said. “We are excited to be moving into the next phase of Orion’s development, with PCZM’s construction decision imminent and are grateful to have supportive shareholders that will help us deliver our strategy”.

The Prieska Copper-Zinc Mine is the centrepiece of Orion’s strategy to become a significant base metals producer in South Africa. The project is described as one of the top 30 largest known Volcanogenic Massive Sulphide deposits worldwide, grading 1.2% copper and 3.6% zinc, with a Probable Ore Reserve of 15.6 million tonnes supporting a 13-year operational life.

The mine is planned as a two-phase underground operation. The Uppers section will be developed on existing infrastructure, designed to process 240,000 tonnes of ore annually, while the Deeps phase aims to reach a steady-state processing capacity of 2.4 million tonnes per year. Once fully operational, Prieska is expected to produce 22,000 tonnes of copper and 65,000 tonnes of zinc annually.

Critically, the mine’s estimated **all-in sustaining cost of US$0.94 per pound of copper** ranks it among the **lowest 25% cost copper mines globally** — a significant competitive advantage in a market where copper prices have surged past $10,000 per tonne.

A major catalyst for Orion was securing a US$250 million prepayment facility with a wholly owned subsidiary of Glencore plc, linked to the sale of bulk, copper and zinc concentrates from Prieska. The South African Reserve Bank approved the transaction, fulfilling a key condition for final execution. The first tranche of the financing was expected to be available by the end of August 2026, enabling the start of construction of the mine’s upper section. Initial production is targeted for the third quarter of 2027.

Orion is also advancing the Okiep Copper Project, another brownfields development in the Northern Cape, where it holds an effective 51% stake through New Okiep Mining Company. The Industrial Development Corporation of South Africa owns 21%, with Landmark Capital Investments (18%), Orion Nama Khoi Community Company (5%) and the Orion Nama Khoi Employee Share Scheme Company (5%) holding the balance. Recent drilling at the Flat Mine East prospect returned intercepts including 49.35 metres at 5% copper and 7.88 metres at 9.2% copper, confirming the continuity of copper zones and further exploration potential.

The transfer of Tembo’s stake to Borman and the South African institutional investor may strengthen Orion’s capital base and governance continuity as it advances toward construction. Borman’s increased stake — now at 14.32% — remains below the 20% threshold at which Australian takeover rules would apply, but signals his deepening commitment to the project.

Orion ended the June 2026 quarter with A$14.45 million in cash** and a market capitalisation of approximately **A$206 million. The company raised A$15.4 million (about R178 million) during the quarter to support work on its Prieska and Okiep projects.

With Tembo’s exit complete and construction at Prieska imminent, Orion Minerals stands at a pivotal moment. The company has secured offtake and financing from one of the world’s largest commodity traders, assembled a supportive shareholder base, and positioned itself to become a significant new copper-zinc producer in South Africa.

The construction decision for Prieska — expected in the coming weeks — will mark the transition from a development company to a producer, and will be the ultimate test of whether the decade-long investment by Tembo Capital and its successors has been vindicated.