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Orocobre enters trading halt for borates capital raising

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Orocobre Limited's (ASX:ORE) shares have entered into a trading halt, as it looks to a fund raising to provide capital for expansion of the company’s borates business.

The halt will remain until the earlier of the commencement of normal trading on Thursday, 14 November 2013.

In November, Orocobre commenced a pre-feasibility study into the construction of a Boric Acid plant at Olacapato in Salta Province, Argentina.

The study will assess the feasibility of constructing a boric acid plant with a production capacity of 16-24,000 tonnes per annum boric acid.

Boric acid is used in a wide variety of applications including glass, ceramics, fertilisers and wood preservatives and the market is growing at a pace faster than world GDP growth.

For standard and agricultural grade boric acid, pricing has ranged approximately between US$750 tonne to $1,250 tonne CIF over the past 5 years.

The Borax Argentina business was acquired from Rio Tinto Minerals in August 2012 and while it is not the main business for Orocobre, it could be a handy earner.

Quick facts: Orocobre

Price: 2.51 AUD

ASX:ORE
Market: ASX
Market Cap: $695.5 m
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