BRISBANE, Australia, June
6, 2017 /CNW/ -- Orocobre Limited (ASX: ORE, TSX: ORL)
(Orocobre or the Company) wishes to provide an update
on the receipt of funds from the sale of tenements at Salinas
Grandes and the release of additional cash security deposits in
Australia which back Sales de
Jujuy S.A.'s ("SDJ'') Argentine working capital facility.
Sale of tenements at Salinas Grandes – US$4 million received
Further to the ASX release of 30 March
2017, LSC Lithium (TSXV: LSC) and Orocobre have now
completed the previously announced sale of tenements and other
rights held by the Company and associated companies at Salinas
Grandes.
Terms of the sale of Salinas Grandes
Orocobre has now disposed of all tenements held at Salinas
Grandes for the following consideration:
a) US$4,000,000 which has
now been received;
b) the transfer to the Company of three strategic
tenements at Salar de Olaroz covering approximately 3,821
hectares;
c) a further US$1,000,000
payable on the first anniversary of closing, $1,000,000 payable on the second anniversary of
closing and US$944,630 payable on the
third anniversary of closing; and
d) a 2% royalty on brine concentrate produced from the
Salinas Grandes tenements. The Company has agreed to share
this royalty with Advantage Lithium Corporation (AAL) on the basis
of ORE:1.5% and AAL:0.5%. following the transfer by AAL of rights
in respect of tenure also located at Salinas Grandes to LSC
Release of Standby Letters of Credit – further US$3.85 million released to Orocobre
SDJ repaid US$5.3M of its working
capital facility this week resulting in a further release of
US$5.3M held as security for the
Standby Letters of Credit which support the SDJ working capital
facility. Orocobre's portion of this release is US$3.85M.
Total release of cash from securities backing the Standby
Letters of Credit since 1 January
2017 is US$21.0M on a 100%
basis, of which Orocobre's share is US$15.2M.
The balance of security yet to be released to Orocobre for the
Standby Letters of Credit now stands at US$18.9M and this is expected to be received by
December 2017.
For more information please contact:
Richard
Seville
Managing Director
T: +61 7 3871 3985
M:+61 419 916 338
E: rseville@orocobre.com
Andrew
Barber
Investor Relations Manager
T: +61 7 3871 3985
M: +61 418 783 701
E: abarber@orocobre.com
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange
and Toronto Stock Exchange (ASX: ORE) (TSX: ORL), and is building a
substantial Argentinian-based industrial chemicals and minerals
company through the construction and operation of its portfolio of
lithium, potash and boron projects and facilities in the Puna
region of northern Argentina. The
Company has built, in partnership with Toyota Tsusho Corporation
and JEMSE, the first large-scale, greenfield brine based lithium
project in approximately 20 years at the Salar de Olaroz with
planned production of 17,500 tonnes per annum of low-cost lithium
carbonate.
The Olaroz Lithium Facility has a low environmental footprint
because of the following aspects of the process:
- The process is designed to have a high processing recovery of
lithium. With its low unit costs, the process will result in low
cut-off grades, which will maximise resource recovery.
- The process route is designed with a zero liquid discharge
design. All waste products are stored in permanent impoundments
(the lined evaporation ponds). At the end of the project life the
ponds will be capped and returned to a similar profile following
soil placement and planting of original vegetation types.
- Brine is extracted from wells with minimum impact on freshwater
resources outside the salar. Because the lithium is in sedimentary
aquifers with relatively low permeability, drawdowns are limited to
the salar itself. This is different from halite hosted deposits
such as Salar de Atacama, Salar de
Hombre Muerto and Salar de Rincon
where the halite bodies have very high near surface permeability
and the drawdown cones can impact on water resources around the
Salar affecting the local environment.
- Energy used to concentrate the lithium in the brine is solar
energy. The carbon footprint is lower than other processes.
- The technology developed has a very low maximum fresh water
consumption of <20 l/s, which is low by industry standards. This
fresh water is produced by reverse osmosis from non-potable
brackish water.
- Sales de Jujuy S.A. is also committed to the ten principles of
the sustainable development framework as developed by The
International Council on Mining and Metals. The company has an
active and well-funded "Shared Value" program aimed at the long
term development of the local people.
The Company continues to follow the community and shared value
policy to successfully work with suppliers and the employment
bureau to focus on the hiring of local people from the communities
of Olaroz, Huancar, Puesto Sey, Pastos Chicos, Catua, Susques,
Jama, El Toro, Coranzulí, San Juan and Abrapampa. The project
implementation is through EPCM (Engineering, Procurement and
Construction Management) with a high proportion of local
involvement through construction and supply contracts and local
employment. The community and shared value policy continues to be a
key success factor, training local people under the supervision of
high quality experienced professionals.
The Company also wholly-owns Borax Argentina, an important
regional borate producer.
For further information, please visit
www.orocobre.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/us785m-received-from-sale-of-salinas-grandes-and-release-of-sblcs-300469155.html
SOURCE Orocobre Limited