Orocobre announces $180 million debt facility for Olaroz stage 2 expansion

Chicago, Aug. 22 - Orocobre Ltd. announced finalization of a $180 million project financing, according to a company notice.

The facility is set to mature March 10, 2029 and carries an annual interest rate of less than 4%.

The financing is to be used for stage 2 expansion of the Olaroz operations.

During construction, the facility will be guaranteed by Orocobre and Toyota Tsusho Corp. Upon project completion, Japan Oil, Gas and Metals National Corp. will be guaranteeing the facility.

The execution of the deal involved Orocobre, Toyota Tsusho, Sales de Jujuy SA, Jujuy Energia y Minera Sociedad del Estado, Mizuho Bank Ltd. and Japan Oil, Gas and Metals.

Salas de Jujuy operates as a joint venture between Orocobre, Toyota Tsusho and Jujuy Energia y Minera Sociedad del Estado.

Orocobre and Toyota Tsusho agreed to provide non cash-backed guarantees for the facility, according to a January 2018 share subscription agreement.

Orocobre also agreed to hold $135 million of cash in a separate reserve account for cost overruns and other defined events should they occur until the project is completed.

Remaining capital for the project will be provided through shareholder loans.

Based in Brisbane, Australia, Orocobre is a mineral explorer.

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