Orocobre (ASX:ORE) and Toyota Tsusho have secured US$192 million in debt finance for funding the Olaroz lithium project in Argentina.
With other debt facilities already in place, this is the last part of financing for the Olaroz project, where construction has already started and production is expected in the second quarter of 2014.
The maximum facility will be for SU$191.9 million with a maximum debt to equity ratio of 70%:30%.
The overall cost of the debt funding including guarantee is expected to be about 4.5% of the drawn amount and will be fixed for the term of the loan at the time of drawing on the debt facility.
The Olaroz Project Joint Venture is being operated through Orocobre’s Argentine subsidiary, Sales de Jujuy S.A.
Its shareholders include Sales de Jujuy Pte Ltd, a Singaporean company that is the joint venture vehicle for Orocobre and Toyota Tsusho and Jujuy Energia y Mineria Sociedad del Estado (JEMSE), the mining investment company owned by the provincial Government of Jujuy, Argentina.
The effective Olaroz Project equity interests are Orocobre 66.5%, TTC 25.0% and JEMSE 8.5%.
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