Orocobre Ltd. [ORL-TSX; ORE-ASX] reported that following the approval by the Supreme Court of British Columbia, a statutory plan of arrangement under the Business Corporations Act (British Columbia) has been completed whereby Orocobre acquired 100% of the issued and outstanding shares of Advantage Lithium Corp. that it did not already own. Shares of Advantage Lithium will be delisted April 21.
Under the terms of the arrangement, Advantage shareholders have now received 0.142 share of Orocobre for each Advantage share held.
Orocobre has now issued approximately 15.1 million shares, increasing its total issued shares by 5.8 per cent. Orocobre has utilized its 15-per-cent placement capacity to complete the arrangement without the need for Orocobre shareholder approval.
Orocobre managing director and CEO Martin Perez de Solay commented, “I would like to thank Advantage shareholders for their support of this transaction and welcome them to Orocobre. Whilst current global events present some challenges, the fundamentals of the lithium industry into the future remain strong and Advantage shareholders will now be able to participate in this directly.
“The completion of this transaction delivers Orocobre an unparalleled landholding and resource position which will be the base for future growth,” he said.
Following the Argentine Ministry of Production declaring Orocobre Ltd.’s Olaroz and Borax operations as essential activities, further progress has been made in recommencing production in both businesses. Production and shipping of lithium carbonate have now recommenced at Olaroz with a significantly reduced number of personnel at site.
Orocobre is a global lithium carbonate producer and an established producer of boron. Orocobre’s interests include its Olaroz lithium facility in northern Argentina, a material JORC resource in the adjacent Cauchari basin, and Borax Argentina, an established boron minerals and refined chemicals producer. The company has commenced an expansion at Olaroz and construction of the Naraha lithium hydroxide plant in Japan.