HPA Alumina
Photo by: Orbite Aluminae
TORONTO (miningweekly.com) – The Quebec provincial government on Monday formally approved a $10-million equity investment in alumina producer Orbite Aluminae.
The outlay by the province’s investment vehicle Investissement Quebec (IQ) followed the company receiving a C$4-million non-interest-bearing repayable financial contribution from Canada Economic Development's Quebec Economic Development Programme in January.
The latest investment decision followed a comprehensive technical and financial due diligence of Orbite’s high-purity alumina (HPA) facility, carried out by a third-party engineering firm.
The announcement was on Monday made at Orbite's HPA production facility in Cap-Chat.
"We have the privilege, in Quebec, to benefit from dynamic and innovative businesses like Orbite Aluminae, to ensure our competitiveness and reinforce our expertise in the sector of transformation of mining products. This structuring project positions Quebec as a provider of a niche product used for high-tech applications, in addition to maintaining the economic vitality of the Gaspesie-Iles-de-la-Madeleine region,” the Quebec Minister for Industrial Policy and the Banque de developpement economique du Quebec Elaine Zakaib said.
Orbite president and CEO Glenn Kelly added that the significant contribution from the provincial government was a testament to the work carried out by Orbite’s new management and engineering team during the last six months.
“We are honoured to have the government of Quebec as a major shareholder in Orbite and their investment will be used towards the completion of our HPA production facility,” he said.
Terms and conditions of the investment, including timing and pricing, would be settled within the next few weeks.
Orbite in December completed a $16-million public offering, supplementing a $40-million private placement with US-based institutional investor Crede Capital Group, which brought the total cash raised to $56-million.
Orbite last year fell victim to a budget blowout, lifting the capital needed to complete construction of the 3 t/d second phase of its HPA plant to about $105.9-million, up from the 2012 estimate of $85-million.
Orbite’s share price rose 10.81% on the news, closing at C$0.41 apiece. The stock had lost 78.36% in value during the last 12 months.