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Orocobre Limited (ORL.TO) confirms that its project partner, Toyota Tsusho Corporation ( TTC ) has issued a press release in which it has announced an internal investment decision to acquire a 25% stake in the Olaroz lithium-potash project in Argentina.

In the press release, TTC also advised that the project finance will be provided by Mizuho Corporate Bank and the debt guarantees provided by Japan Oil, Gas and Metals National Corporation (JOGMEC) with a debt to equity ratio of about 70%, an increase from the 60% previously indicated by Orocobre.

Additionally the release indicated an expected production rate of 17,500 tpa of lithium carbonate, an increase from 16,400 tpa in the Feasibility Study, which Orocobre confirms. As previously advised (Orocobre Announcement 27 June 2012), the final project ownership will be Orocobre 66.5%, TTC 25% and JEMSE 8.5%

Orocobre also advises that the agreements with TTC are at an advanced stage and should be completed within two weeks at which point Orocobre will be in a position to provide comprehensive details of the arrangements with TTC, structure of the debt package and an overall project update.

ORL is now up nearly 9% to $2.35. Shares touched a high of $2.50 at the open, 5 cents short of a yr high.

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