VANCOUVER (miningweekly.com) – ASX- and TSX-listed Orocobre has received a welcome financial boost in the form of a value added tax (VAT) refund and by the release of further cash security deposits in Australia, which back subsidiary Sales de Jujuy’s (SDJ's) Argentine working capital facility.
The Brisbane, Australia-based industrial chemicals and minerals company said Thursday that SDJ has received about $2.7-million of additional VAT refunds, bringing the total to date to about $19.8-million.
All VAT claims submitted to Argentine authorities, through to, and including January, have now been approved and paid.
Outstanding claims for February and March total about $3.5-million, and have been submitted to the Argentine authorities. The total outstanding VAT balance from project construction yet to be claimed by SDJ stands at about $15.7-million, on a pre-discounted basis, the company advised.
Meanwhile, SDJ repaid $5-million of its working capital facility this week resulting in a release of $5-million held as security for the standby letters of credit, which support the SDJ working capital facility. Orocobre's portion of this release is $3.6-million, bringing the total release of cash since January 1 to $14.3-million.
The balance of security yet to be released to Orocobre for the standby letters of credit now stands at $22.7-million and this is expected to be received by December.
Orocobre is focused on its flagship Salar de Olaroz operation, which is ramping up to boilerplate capacity of 17 500 t/y. Orocobre also holds an 85% interest in the Salar de Cauchari lithium/potassium/boron brine project.