Orocobre Limited (the Company or Orocobre) (ASX: ORE; TSX: ORL) is pleased to announce that further to its releases of November 23, 2016 the Company has completed the sale of a suite of exploration assets to Advantage Lithium Corp (TSV: AAL).
The completion of the sale follows the successful closing of a CAD20 million capital raising via subscription receipts undertaken by Advantage Lithium and the satisfaction of all other conditions in the transaction documentation. These funds have now been released, leaving Advantage Lithium well funded with approximately CAD23 million.
Following the completion of the transaction Orocobre Limited will hold 46,325,000 (35%) of the issued shares of Advantage Lithium and will also hold 2,550,000 warrants exercisable at CAD1. Orocobre Limited did not participate in the capital raising. Pursuant to the terms of the transaction agreements, Orocobre has retained a 42.5% interest and a 1% gross royalty in the Cauchari Project. Advantage Lithium has the right to increase its interest to a total of 75% by the expenditure of USD5 million and will commence a drilling programme at Cauchari in late April. Upon the closing of the sale, Richard Seville and Rick Anthon from Orocobre Limited were appointed to the board of Advantage Lithium.
Drilling on the Cauchari Project is due to start in the coming quarter following recent approval of the project's exploration Environmental Impact Study (EIS).
Managing Director Richard Seville stated, "We are very pleased to have completed this transaction and look forward to a successful partnership with a well funded partner in Advantage Lithium. It is a real positive that the Cauchari Joint Venture and other projects we have sold to Advantage Lithium will be rapidly advanced whilst we maintain our focus on achieving our Stage 1 production goals at the Olaroz Lithium Facility and subsequent growth opportunities."