PERTH (miningweekly.com) – ASX- and TSX-listed Orocobre has completed an A$85-million capital raise through a share placement to institutional and sophisticated investors.
The company on Friday announced that it had placed more than 40.4-million shares, at a price of A$2.10 each.
The issue price represented a 10.7% discount to the company’s five-day volume-weighted average price, prior to a trading halt on January 20.
More than 25.3-million shares would be issued under the company’s current capacity, while the balance of the shares would be issued subject to shareholder approval at a general meeting scheduled for February 29.
Orocobre would use the proceeds of the placement to service financing costs related to the Olaroz project, including principal and interest payments due in March and September this year, and payments to the debt service reserve accounts.
Meanwhile, Orocobre noted that production ramp up at the Olaroz lithium facility, in Argentina, continued during the three months to December, with the operation producing 1 108 t of lithium carbonate during the quarter.
This was an increase of 616 t over the previous quarter.
A production rate of 20 t/d was achieved towards the end of December, and Orocobre was confident that it could produce between 600 t and 650 t during the month of January.
Debottlenecking work would also be completed during January, allowing the plant to achieve the operating cost breakeven run rate, and enter the final stages of the production ramp-up.
The Olaroz project had a nameplate capacity of 17 500 t/y.