toyota buy in price, page-5

okay let's assume that it is as simple as that and Orocobre gets $112m in cash to allow the Toyota associate to have 25% of the Olaroz project. (if it is that simple then it does not explain why it is going to take 9 months to negotiate a deal).

Also worth remembering that Toyota is going to arrange cheap loans for 60% of the $221m in capital costs of Olaroz ie about $132m in loans.

Which means that ORE has to put in about $88m itself to pay for capital costs. On the face of it ORE can make the $88m in payments from the $112m paid to it by Toyota. If that is the case then ORE may not need a cap raising to get the Olaroz project into production.

But it may come down to timing. If Toyota does not pay over any of the $112m for another nine months and Orocobre wants to make a start on the 15 month long construction process then maybe ORE will need to pay for the longer lead time capital goods before it gets Toyota's money. So in that scenario then yes we may need a cap raising.

It would be good if the ORE managers could clarify whether the 9 month negotiation period with Toyota can overlap the 15 month construction period for the Olaroz project. IF not then we are looking at production beginning in 2013, not 2012.

Also elaboration on the idea that the Grandes project could feed into some of the Olaroz project would be good. For that to happen does it mean that Toyota would have to buy into the Grandes project as well.