Don't worry too much, per the DFS it looks a low cost, long life project. All our best predictions on dilution, share price targets etc., may be futile. ORE came out with a pretty good deal on finance with its project, GXY can hopefully do the same.
"With Toyota Tsusho and the Japanese state controlled JOGMEC backing the deal, Orocobre was able to raise 70% of the capital it needed to build the mine, and did so at a cost of just 4.5% annually over 10 years.
Such an unimaginably low cost of debt for a junior was achieved thanks to the financing being guaranteed by Toyota to completion of construction and after time it is secured by Japan Oil, Gas and Metals National Corporation (JOGMEC).
With the debt deal done and more capital coming from Toyota earning into to its 25% (details of which were not released), Orocobre only needed to raise another $20 million, which it did with relative ease.
The capital will go towards building a mine an processing plant that is expected to cost US$229 million to build, a figure that includes a 10% cushion on top of a contingency. That investment will get Orocobre a full blown chemicals plant that can take the material all the way to a very pure battery-grade final product."
