Toyota Tsusho Corporation Announces Positive Investment Decision for Olaroz Lithium Project
- Toyota Tsusho Corporation (TTC) announces positive investment decision for Olaroz- Mizuho Corporate Bank and JOGMEC to provide project financing
- Details to be available on finalisation and execution of documentation
BRISBANE, AUSTRALIA -- (Marketwire) -- 09/26/12 -- In response to foreign media articles, Orocobre Limited ("the Company") (TSX: ORL)(ASX: ORE) confirms that its project partner, Toyota Tsusho Corporation ("TTC") 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. An English language version of this press release will be posted on our Company website www.orocobre.com.au.
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 approximately 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.
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange and Toronto Stock Exchange (TSX: ORL)(ASX: ORE), and is the leading lithium-potash developer in the lithium and potassium rich Puna region of Argentina. The Company intends to commence construction in 2012, with commercial production following in 2014. For further information, please visit www.orocobre.com.
Caution Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information contained in this release includes, but is not limited to, the completion of a definitive agreement between Orocobre and Toyota Tsusho Corporation and lending documentation with Mizuho and JOGMEC, the financing and profitability of the Olaroz Project, the commencement of construction and production at the Olaroz Project, and the timing of each of the foregoing.
Such forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk of further changes in government regulations, policies or legislation; the possibility that required concessions may not be obtained, or may be obtained only on terms and conditions that are materially worse than anticipated; the risk that a definitive joint venture agreement with Toyota Tsusho Corporation may not be completed and/or that project financing will not be arranged with Mizuho Corporate Bank and JOGMEC; that further funding may be required, but unavailable, for the ongoing development of the Company's projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with construction and development of the Olaroz Project; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Olaroz Project; general risks associated with the feasibility and development of the Olaroz Project; as well as those factors disclosed in the Company's Annual Information Form for the year ended June 30, 2012 filed at www.sedar.com.
The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things: the timely receipt of required approvals and completion of agreements on reasonable terms and conditions; the ability of the Company to obtain financing as and when required and on reasonable terms and conditions; the prices of lithium and potash; and the ability of the Company to operate in a safe, efficient and effective manner. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
ABN 31 112 589 910
Contacts:
Orocobre Limited
Richard Seville
Managing Director
M: +61 419 916 338
rseville@orocobre.com
Orocobre Limited
Bruce Rose
VP - Corporate Development
M: + 1 (604) 377 1423
brose@orocobre.com