- Mineral resource company Orocobre (ORL) has raised approximately $121 million through a fully underwritten placement to advance its lithium facility in Argentina
- The company ASX-listed shares in the placement were issued at approximately $2.43, a discount of 13.1 per cent against the company’s most recent share price
- Orocobre is also still offering up $30 million in shares to eligible Australian and New Zealand shareholders, which will be allocated at approximately $2.43 each
- Orocobre (ORL) is down 5.58 per cent and is trading at $2.54 per share
Mineral resource company Orocobre (ORL) has raised approximately C$121 million through a fully underwritten placement to advance its lithium facility in Argentina.
The company announced the raise late last week, alongside a new agreement with Toyota’s and Panasonic’s joint venture, Prime Planet Energy & Solutions.
Shares in the placement were issued at approximately $2.43, a discount of 13.1 per cent against the company’s recent share price. Roughly 50 million ordinary shares were issued and will enter the company float later this week.
As the allotment fell with the company’s temporary extra placement capacity, which was amended in early July, shareholder approval was not required.
Orocobre is also still offering up $30 million in share to eligible Australian and New Zealand shareholders, which will be allocated at approximately $2.43 each.
The company will use the funds to advance its Olaroz lithium facility in Argentina through stage one and two development.
Production and progress at the facility has been hampered in recent months following the onset of COVID-19, which has severely hit global lithium prices, as well as the company’s ability to operate at onsite.
However, with the new funding secured, the company believes it has sufficient cash to deliver the new facility at a range of operating and pricing environments.
Orocobre’s CEO Martin Perez de Solay said the company was very pleased with the support shown by our institutional shareholders and other institutional investors.
“We see the success of the placement as a clear endorsement of Orocobre’s decision to deliver financial flexibility to support stage one and stage two development through a range of operating and pricing environments,” he said.
Orocobre (ORL) is down 5.58 per cent and is trading at $2.54 per share at 11:19pm EDT.
