BRISBANE, AUSTRALIA--(Marketwired - March 16, 2017) - This press release is being disseminated by Orocobre Limited (Orocobre or the Company) (ASX:ORE)(TSX:ORL), a company incorporated under the laws of Australia at the head office address of Level 1, 349 Coronation Drive, Brisbane, QLD, Australia, 4064, as required by National Instrument 62-103 - The Early Warning System and Related Take Over Bids and Insider Reporting Issues.
Further to its news release dated November 24, 2016, Orocobre entered into a definitive agreement on March 16, 2017 with Advantage Lithium Corp. (TSX VENTURE:AAL), with head office at #1305 - 1090 W. Georgia Street, Vancouver, BC V6E 3V7, to divest a number of lithium brine exploration projects which are currently held through Orocobre's Argentine subsidiary South American Salars SA. Under the terms of the agreement, and subject to satisfaction of certain conditions, Advantage Lithium will issue to Orocobre 46,325,000 common shares and a warrant to purchase an additional 2,550,000 common shares, which are currently valued in the aggregate at approximately US$30 million, in consideration for the acquisition of the exploration projects. Closing of the transaction is expected on or prior to March 31, 2017.
Orocobre does not currently own any shares of Advantage Lithium. Upon and subject to completion of the transaction and Advantage Lithium's concurrent financing, it is expected that Orocobre will own 35.71% of Advantage Lithium's outstanding common shares on a partially diluted basis. Orocobre is acquiring these shares for investment purposes. Upon completion, Orocobre will be entitled to appoint two nominees to the board of directors of Advantage Lithium, which will then comprise six board members, and Orocobre will have certain other rights and obligations with respect to its shares as detailed in its press release of November 24, 2016. Orocobre may, from time to time, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over securities of Advantage Lithium through market transactions, private agreements or otherwise.
A third party, Miguel Peral, who holds a 15% interest in the exploration projects will receive 8,175,000 common shares and 450,000 warrants from Advantage Lithium in consideration for his interest in such projects.
An early warning report in respect of the above transactions will be filed with the relevant Canadian securities regulatory authorities. Copies of such reports may be obtained from SEDAR at www.sedar.com or by contacting Andrew Barber, Investor Relations Manager at the contact information below.
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 andminerals company through the construction and operation of its portfolio of lithium, potash andboron 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 battery grade lithium carbonate.
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 may include, but is not limited to, the divestment of exploration projects to Advantage Lithium as described in this release and the design production rate for lithium carbonate at the Olaroz lithium facility. 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 the conditions precedent in the definitive agreement described in this press release not being satisfied; risks associated with commissioning and ramp up of the Olaroz Lithium Facility to full capacity; and other factors disclosed in the Company's Annual Report for the year ended June 30, 2016 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, potash and borates; market demand for products 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