Orocobre shares open 43% higher
January 19, 2010
Orocobre Limited (ORE) shares surged 60c to $2.00 at the open, after saying it had reached an agreement with Toyota subsidiary Toyota Tsusho Corporation, to develop the Salar de Olaroz Lithium-Potash Project in Argentina. The latter would invest $4.5 million to complete the feasibility study and other pre-development work, slated to be completed by the third quarter of this year.
In return the Japanese automaker would acquire a 25% interest in the project, while promising to act as a conduit to inexpensive funding through Japan Oils, Gas and Metals NationalCorporation (JOGMEC), a state-owned entity that provides assistance to Japanese companies in securing supplies of mineral resources.
However Orocobre Managing Director, Richard Seville said at current estimates additional funding for the project would not be required.
Mr Seville said Toyota Tsusho would have the first rights to lithium off-takes required to develop its car batteries.
“Toyota Tsusho becoming our strategic partner allows Olaroz direct access to Toyota Motor Corporation and its partners such as Panasonic and Sanyo,” Mr Seville said.
“Global demand for lithium across the electronics, industrial and automotive sectors continues to grow and we are very pleased to have secured access to a project of this size and quality,with a strong and focused development partner.”
At the open Wednesday, Orocobre shares had surged 42.9%, or 60c, to $2.00 each.
In return the Japanese automaker would acquire a 25% interest in the project, while promising to act as a conduit to inexpensive funding through Japan Oils, Gas and Metals NationalCorporation (JOGMEC), a state-owned entity that provides assistance to Japanese companies in securing supplies of mineral resources.
However Orocobre Managing Director, Richard Seville said at current estimates additional funding for the project would not be required.
Mr Seville said Toyota Tsusho would have the first rights to lithium off-takes required to develop its car batteries.
“Toyota Tsusho becoming our strategic partner allows Olaroz direct access to Toyota Motor Corporation and its partners such as Panasonic and Sanyo,” Mr Seville said.
“Global demand for lithium across the electronics, industrial and automotive sectors continues to grow and we are very pleased to have secured access to a project of this size and quality,with a strong and focused development partner.”
At the open Wednesday, Orocobre shares had surged 42.9%, or 60c, to $2.00 each.
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