capital raising at $1.5 ?, page-9

A bit more from WSJ

November 1, 2012, 4:35 PM
Lithium Producer Orocobre Seeks Up To $26 Million
Deal Journal Australia HOME PAGE »

By Gillian Tan
Lithium producer Orocobre Ltd. ORE.AU +0.82%is seeking up to 25 million Australian dollars (US$26 million) for working capital and to fund its Argentina-based Salar de Olaroz and Borax Argentina projects, according to a term sheet seen by Deal Journal Australia.

The raising — led by Canaccord Genuity — is split between a share placement which will raise around A$20 million and an up to A$5 million share purchase plan. It is being conducted at a range between A$1.70 a share and A$1.75 a share, representing a between 5.7% and 8.4% discount to the stock’s last-traded price of A$1.855 a share.


Associated Press
Lithium is used in hybrid electric vehicle batteries Orocobre — which has a portfolio of lithium, potash and boron projects in Argentina — entered a trading halt on the Australian Securities Exchange early Thursday citing a capital raising. The company, which is also listed on the Toronto Stock Exchange, last month announced that Japan’s Toyota Tshusho Corporation would be a joint venture partner on its flagship Salar de Olaroz project. As part of that deal, Mizuho Corporate Bank is providing debt financing of up to US$192 million.

Lithium batteries are used in electric cars and portable electronics, and global supply is dominated by brine-based producers including Sociedad Quimica y Minera de Chile SA SQM-B.SN -0.22%, Rockwood Holdings Inc. ROC -1.78%and FMC Corp. FMC -1.40%. According to the term sheet, demand is forecast to grow from around 130 kilotons in 2011 to around 400 kilotons by 2025.

Last month, GMP Securities initiated coverage of Orocobre with a Buy recommendation and a price target of A$2.98. “We see the makings of a junior Argentinian equivalent of Sociedad Quimica y Minera de Chile,” GMP analyst Levi Spry said at the time.

http://blogs.wsj.com/dealjournalaustralia/2012/11/01/lithium-producer-orocobre-seeks-up-to-26-million/