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Orocobre to acquire Advantage Lithium

Orocobre has entered into a definitive agreement to acquire Advantage Lithium to consolidate the Olaroz/Cauchari lithium basin in Jujuy, Argentina.
Orocobre to acquire Advantage Lithium Orocobre to acquire Advantage Lithium Orocobre to acquire Advantage Lithium Orocobre to acquire Advantage Lithium Orocobre to acquire Advantage Lithium

The Olaroz lithium operation in Jujuy, Argentina

Staff reporter

Integration of Advantage's Cauchari with Orocobre's Olaroz enables the lithium producer to optimise basin management and maximise its long-term productive capacity.

Cauchari is a joint venture between Advantage Lithium (75%) and Orocobre (25%). It has 4.8 million tonnes of measured and indicated resources of lithium carbonate equivalent and 1.5Mt of inferred resources.

"This transaction is an exciting opportunity for both Orocobre and Advantage shareholders to consolidate on the achievements to date. For Advantage shareholders, they can now be part of something bigger without the challenges junior companies face when moving from exploration to development and onto production. For Orocobre shareholders, we will consolidate our position in the Olaroz/Cauchari basin which will give us significant flexibility as we deliver additional growth to our existing business.," said Orocobre MD and CEO Martin Perez de Solay.

Under the terms of the agreement Advantage shareholders will receive 0.142 Orocobre shares per Advantage share, which equates to a value of C42c per Advantage share. It will see Orocobre issue about 15.1 million shares which will increase its issued shares by 5.8%.

Orocobre currently holds 34.7% of Advantage.

Shares in Advantage Lithium jumped 13% to 38c, valuing the company at $63 million.

Shares in Orocobre fell almost 2% to C$2.95, valuing the company at $783 million.