OROCOBRE COMPLETES CAPITAL RAISING

Written on the 29 June 2015

OROCOBRE COMPLETES CAPITAL RAISING OROCOBRE Limited (ASX: ORE) has completed a 'significantly oversubscribed' capital raising for $32.3 million.

The funds were raised through a placement to domestic and international shareholders.

Approximately 17 million shares were issued at a price of $1.90 per share, representing a 9.5 per cent discount to the ASX closing price prior to the company entering into a trading halt on 25 June.

Proceeds will be used primarily to fund the Olaroz Lithium Facility joint venture company, Sales de Jujuy SA (SDJ SA), where ORE's ownership structure requires the company to contribute 75 per cent of the project funding.

The funds will be provided to SDJ SA through a shareholder loan mechanism.

Production has been slower than expected due to equipment and early operational issues, but these areas have now been identified and rectified.

Meanwhile, this has impacted the working capital position of SDJ SA and during the period, operating costs of a typically fixed nature were incurred alongside lower revenue due to slower production quantities.

Managing director Richard Seville says the company is pleased with the level of interest shown in the capital raising.

"We are both very appreciative of the strong level of support shown by existing shareholders and also pleased in the level of interest shown by new institutional shareholders," says Seville.

"We are now appropriately funded to take Olaroz through to becoming a profitable operating company. It is a great time to be in the lithium sector and we will continue to work hard to deliver the results our shareholders expect and to take full advantage of being in such a favourable sector."



Latest News

CHARTER HALL SNAPS UP SALAMANDER BAY CENTRE FOR $174M

RETAIL investment trust Charter Hall (ASX: CQR) has purchased the regional Salamander Bay Centre in New South Wales f...

$12 MILLION OFFICE SALE UNDERPINS MILTON REVIVAL

ONE of Milton's well known office buildings has sold for $12.88 million, supporting the resurgence of the popular...

ONE OF AUSTRALIA'S 'DOPE HOPES' MOVES CLOSER TO IPO

QUEENSLAND Bauxite (ASX: QBL) is planning an independent ASX listing for its majority-owned cannabis producer, with Q...

AFTERPAY GOES TRANS-TASMAN WITH TRADE ME DEAL IN NEW ZEALAND

AFTERPAY Holdings Ltd (ASX: AFY) has entered into an agreement with New Zealand trading site Trade Me Group Ltd (A...

Related News

AFTERPAY GOES TRANS-TASMAN WITH TRADE ME DEAL IN NEW ZEALAND

AFTERPAY Holdings Ltd (ASX: AFY) has entered into an agreement with New Zealand trading site Trade Me Group Ltd (A...

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET

TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashio...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter