Orocobre concludes merger with Galaxy Resources
Orocobre Limited [ORL-TSX; ORE-ASX] reports completing a merger with Galaxy Resources Limited [GXY-ASX].
Under the terms, all Galaxy shares have now been transferred to Orocobre, and eligible Galaxy shareholders have been issued the scheme consideration of 0.569 Orocobre share for each Galaxy share held on the scheme record date. The 292,598,572 newly issued Orocobre shares are expected to commence trading on Australian Securities Exchange on a normal settlement basis from Aug. 26, 2021.
Orocobre has also issued the Orocobre shares otherwise payable to ineligible shareholders to a nominee who has been appointed to sell those shares so that the net proceeds of sale can be distributed to applicable Galaxy shareholders in accordance with the process set out in the scheme booklet.
Orocobre has appointed the following Galaxy directors to the Orocobre board with effect from today: Martin Rowley as non-executive chairman; Florencia Heredia, John Turner, and Alan Fitzpatrick – all as non-executive directors.
Rob Hubbard will continue as the deputy chairman, and Richard Seville, Fernando Oris de Roa and Leanne Heywood will continue in their current roles as non-executive directors. Martin Perez de Solay will continue in the role of managing director and CEO.
With immediate effect, John Gibson, Masaharu Katayama and Patricia Martinez retire from the Orocobre board. Mr. Gibson joined the board as a non-executive director in March, 2010, Mr. Katayama joined in April, 2018, and Ms. Martinez joined in December, 2020.
Orocobre deputy chairman Mr. Hubbard said that he welcomed Mr. Rowley, Ms. Heredia, Mr. Turner and Mr. Fitzpatrick to the Orocobre board and looked forward to working with them.
Newly appointed chairman Mr. Rowley said: “It is a pleasure to join the board of directors of Orocobre as the merger of Galaxy and Orocobre is successfully completed. The new Orocobre starts with world-class assets, an industry-leading skills base and unparalleled growth potential. I very much look forward to working with the newly constituted board to realize the benefits of the merger for all stakeholders.”
Delisting of Galaxy
An application has been made to remove Galaxy from the Australian Stock Exchane, expected to take effect on and from August 26, 2021.
Orocobre has a producing lithium and potash mine in Argentina, plus several advanced lithium projects. Galaxy Resources is a lithium producer with projects in Argentina, Canada and Australia.