Orocobre has finalised a deal with Toyota Tsusho Corporation to finance and build Orocobre’s flagship Olaroz lithium project located in the Province of Jujuy, northern Argentina.

TTC and Orocobre will contribute project equity of USD 82.8 million, equating to approximately 30% of maximum project funding if the project financing facility is fully drawn.

At completion of the contributions, TTC will have a 25% indirect interest in the Olaroz project, Jujuy Argentina 8.5% and Orocobre 66.5%.

The agreement with Toyota is an endorsement of the quality of the high purity battery grade product produced at the Olaroz Project over the last 18 months.

As part of its obligations under the January 2010 preliminary agreement, Toyota Tsusho has successfully procured a substantial and low cost project debt facility.

The debt financing will be provided by Mizuho Corporate Bank Ltd, with a maximum facility amount of approximately USD 192 million.

The execution of this definitive Joint Venture Agreement and associated financing is the culmination of this two and a half year process and a clear vote of confidence in the project by Toyota Mizuho and JOGMEC.

Source - Proactive Investors

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