Orocobre Limited (ORL.TO) confirms that its project partner,
Toyota Tsusho Corporation (
) 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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