BRISBANE, Australia, July 26, 2018 (GLOBE NEWSWIRE) -- This media release is being disseminated by Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”), a company incorporated under the laws of Australia at the head office address of Level 1, 349 Coronation Drive, Brisbane, QLD, Australia, 4064, as required by National Instrument 62-103 - The Early Warning System and Related Take Over Bids and Insider Reporting Issues.
Orocobre entered into subscription agreements on July 26, 2018 with Advantage Lithium Corp. ("Advantage Lithium") (TSX Venture: AAL) (OTCQX: AVLIF), with head office at #1305 – 1090 W. Georgia Street, Vancouver, BC V6E 3V7, pursuant to which Orocobre agreed, subject to satisfaction of certain conditions, to subscribe for 15,064,956 common shares of Advantage Lithium at a price of $0.77 per common shares (for an aggregate subscription amount of $11,600,016.10).
Orocobre also entered into an agreement on July 26, 2018 with a third party whereby Orocobre has agreed to sell 8,571,450 common shares of Advantage Lithium to such third party at a price of $0.77 per common shares (for an aggregate sale price of $6,600,016.50). Closing of these transactions occurred on the date hereof.
Prior to the closing of the above transactions, Orocobre held 46,325,000 common shares of Advantage Lithium, and 2,550,000 common share purchase warrants of Advantage Lithium (“Warrants”), with each warrant entitling the holder to purchase an additional common share of Advantage Lithium, at a price of $1.00 per share, expiring March 28, 2019, such that Orocobre owned 32.7% of Advantage Lithium’s outstanding common shares on a partially diluted basis. Upon and subject to completion of the transactions and Advantage Lithium’s previously announced concurrent financing, it is expected that Orocobre will hold 52,843,506 common shares of Advantage Lithium and 2,550,000 Warrants, such that Orocobre will own 33.5% of Advantage Lithium’s outstanding common shares on a partially diluted basis.
Orocobre is completing the above transactions for investment purposes. Orocobre may, from time to time, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over securities of Advantage Lithium through market transactions, private agreements or otherwise.
An early warning release in respect to the above transactions will be filed with the relevant Canadian securities regulatory authorities. Copies of such reports may be obtained from SEDAR at www.sedar.com or by contacting Andrew Barber, Orocobre Limited Investor Relations Manager via the contact details below.
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This media release contains “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information contained in this release may include, but is not limited to, the completion of the transactions described herein. Such forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information. The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things, the timely receipt of required approvals and completion of agreements on reasonable terms and conditions. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
About Orocobre Limited
Orocobre Limited (Orocobre) is a dynamic global lithium carbonate supplier and an established producer of boron. Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: ORE), (TSE: ORL). Orocobre’s operations include its Olaroz Lithium Facility in Northern Argentina, Borax Argentina, an established Argentine boron minerals and refined chemicals producer and a 29% interest in Advantage Lithium.
For further information, please visit www.orocobre.com