(Reuters) -Australia's Orion Minerals said on Wednesday it has signed a non-binding term sheet with a unit of global miner Glencore for $200 million–$250 million funding for its Prieska copper-zinc project in South Africa.

The diversified metal developer said that the deal includes an offtake agreement with Glencore to sell 100% of zinc and copper concentrates, among others, from the mine for a period ranging between five and 10 years.

Orion will receive the funding in two tranches for the construction and commencement of early works at the mine, with the first drawdown targeted in November.

The company said the first tranche of the funding will enable Orion to move swiftly into first production and first cash flow from the project.

Conditions for the provision of funding include a completion of satisfactory due diligence, which Glencore has already commenced, Orion added.

"In parallel with the due diligence process with Glencore, we will continue discussions with our current funding partners," the company's chief executive Tony Lennox said.

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Shinjini Ganguli and Alan Barona)

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