Orocobre raises cash to fund Olaroz ramp-up
PERTH (miningweekly.com) – Dual-listed Orocobre has raised about A$50-million through a share placement and share purchase plan (SPP), to fund its working capital requirements for the Olaroz lithium project, in Argentina.
About 15.7-million shares would be issued under the company’s 15% placement capacity, at a price of A$2.55 a share, to raise an initial A$40-million. A further A$10-million would be raised through an SPP, under which eligible shareholders would be allowed to subscribe for up to A$15 000 in new shares, also priced at A$2.55 each.
The offer price represented a 13% discount to the company’s closing price prior to going into a trading halt at the end of January, as well as an 11.3% discount to the five-day volume-weighted average price.
“We are very pleased with the result of the raising in what are difficult conditions for resource companies,” said Orocobre MD Richard Seville.
“We are now well funded to take Olaroz and the company through to the next stage of development - becoming a profitable operating company.”
Commissioning of the final circuits of the Olaroz lithium plant was completed earlier this month, and the plant had moved to commercial ramp-up to supply lithium carbonate to customers for final product qualifications.
The plant was expected to reach nameplate capacity of 17 500 t/y by the fourth quarter of this year.
Olaroz is held in a joint venture between Orocobre, which owns a 66.5% share, and partners Toyota Tsusho Corporation, as well as the Jujuy Province Mining and Energy Company.
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