$85 Million Capital Raising Completed
Brisbane, Jan 22, 2016 AEST (ABN Newswire) - Orocobre Limited (
ASX:ORE) (TSE:ORL) (OROCF:OTCMKTS) (Orocobre or the Company) is pleased to announce it has raised A$85,000,000 through a placement (the Placement) of 40,476,190 shares to domestic and international institutional and sophisticated investors at an issue price of $2.10 per share, representing a 10.7% discount to the 5 day VWAP of the Company's shares prior to the Company entering into a trading halt on 20 January 2016.
The Placement will significantly strengthen Orocobre's financial position and available cash balance.
The proceeds of the Placement will be used principally to service financing costs related to the Olaroz project, including principal and interest payments due in March and September 2016 and payments to the Debt Service Reserve Account. Other uses of funds are detailed in the Company's latest presentation, released to the market today.
Of the total Placement approximately 25,350,551 shares (representing $53,236,157 of the Placement) will be immediately issued pursuant to Orocobre's existing 15% capacity under ASX Listing Rule 7.1, with the balance of the shares (15,125,639) to be issued subject to and upon receipt of shareholders' approval, to be sought at a General Meeting to be held on or about 29 February 2016.
The Lead Manager and Bookrunner for the placement was Canaccord Genuity (Australia) Ltd.
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange and Toronto Stock Exchange (
ASX:ORE) (TSE:ORL) (OTCMKTS:OROCF), and is building a substantial Argentine based industrial chemicals company through its portfolio of lithium, potash and boron assets. In partnership with Toyota Tsusho Corporation (TTC) and JEMSE, Orocobre has built and is now operating the world's first commercial, brine-based lithium operation constructed in approximately 20 years.
In 2018 Orocobre announced the Stage 2 Expansion of its flagship Olaroz Lithium Facility in Argentina. The Stage 2 Expansion will add 25,000 tpa of lithium carbonate production capacity, taking full production and capacity to 42,500 tpa of lithium carbonate for sale to industrial, technical and battery markets, positioning Orocobre as one of the world's largest and lowest cost lithium chemicals producers.
Additionally, Orocobre and Toyota Tsusho Corporation have commenced construction of the 10,000 tpa lithium hydroxide plant in Naraha, Japan. The construction of the Naraha Lithium Hydroxide Plant will further cement Orocobre's position as a global lithium chemicals producer operating at the bottom quartile of the lithium cost curve. This new hydroxide plant will be the first of its kind in Japan and will provide Orocobre product diversification suitable for different battery technologies and the potential for significant margin growth on our primary lithium carbonate being converted to battery grade lithium hydroxide.
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