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Update: Orocobre Raises A$50M To Fund A Working Capital Gap

Orocobre (OROCF), which has recently commissioned its Olaroz lithium project in Argentina's Jujuy province, after seeing its trading on the ASX being halted for several days, has closed an agreement whereby it will raise A$50M ($39M). A$40M ($31M) will be placed by both institutional and sophisticated investors inside Australia as foreign funds. The remaining funds will be raised from existing shareholders through a share purchase plan.

The terms of the share purchase plan are quite decent, and shareholders get the same terms as the institutional investors as they can buy up to A$15,000 of new shares of Orocobre at A$2.55 per share ($1.98/share). As the SPP will be fully underwritten (by Canaccord Australia), there's no risk for Orocobre, and the company should effectively be able to raise the desired amount. The funds will be used to inject cash into the company's 66.5%-owned subsidiary, which owns the project in a… Read More …