TORONTO (miningweekly.com) – TSX-listed Orbite Technologies has entered into a letter of intent with Investissement Québec to provide the company with total financing of C$15-million.

Orbite noted on Wednesday that the financing was expected to comprise the purchase of 10% convertible non-secured debentures for the principal amount of C$5-million, the purchase of Class A shares of the company for C$5-million, together with the grant of a C$4.9-million bridge loan secured by the company's 2016 refundable investment tax credits.

"These funds, as we receive them, will allow us to re-accelerate our activities at Cap-Chat towards completion of our high-purity alumina plant (HPA). Commissioning activities, which have been ongoing these past weeks, continue to meet expectations, and we will be providing updates on plant start-up timing as we close the various tranches of the financing,” stated Orbite CEO Glenn Kelly.

“We are grateful to Investissement Québec, who have proven to be a stable and supportive partner, for their continued support and commitment. We are also pleased with the structure of the financing, which limits dilution compared to alternative financing options,” he added.

The Cap-Chat project involves the conversion of an HPA pilot plant into a state-of-the-art full-scale ton-a-day HPA facility, although the facility is expected to reach three tons a day of HPA within 12 months of its commissioning, without requiring further significant capital expenditure.

Orbite had also completed the basic engineering for a proposed smelter-grade alumina production plant that would use clay mined from its Grande-Vallee deposit, located in the Francophone province.

Orbite's patent portfolio contained 15 intellectual property families, including 22 patents and 102 pending patent applications, in 11 different countries and regions.