Orocobre Agrees to Acquire Advantage Lithium Corp.

BRISBANE, Australia, Feb. 18, 2020 (GLOBE NEWSWIRE) -- Orocobre Limited (ASX: ORE, TSX: ORL) (Orocobre or the Company) is pleased to announce that it has entered into a definitive agreement (the Agreement) pursuant to which Orocobre will acquire 100% of the issued and outstanding shares of Advantage Lithium Corp. (Advantage) (TSX Venture: AAL) (OTCQX: AVLIF) that it does not already own.

This transaction (the Transaction) will allow Orocobre to continue to develop the Olaroz/Cauchari basin in a cost-effective manner that will optimise extraction of the resource to the benefit of shareholders, local communities, the Provincial and National governments of Argentina, and other stakeholders.

Orocobre shareholders will gain exposure to the 4.8 million tonnes (Mt) of Measured and Indicated Resources and 1.5 Mt of Inferred Resources (expressed as lithium carbonate equivalent) at Cauchari developed by the Advantage and Orocobre joint venture as detailed in the Orocobre ASX Release dated 7 March 2019.

The Transaction further consolidates Orocobre’s leading position within the region as a low-cost producer of lithium chemicals. Orocobre will also acquire Advantage’s exploration properties including those at Antofalla and Incahuasi.

Integration of Cauchari with Olaroz enables Orocobre to deliver optimal basin management and maximises the long term productive capacity of the Olaroz/Cauchari basin. The development of Cauchari will be considered within future plans for the Olaroz Lithium Facility.

The Transaction does not trigger any need for additional financing for the ongoing development of the Olaroz and Cauchari basins currently being undertaken by Orocobre and its joint venture partners.

The Transaction

Under the terms of the Agreement Advantage shareholders will receive 0.142 shares of Orocobre per Advantage share. Based on the closing price of Orocobre shares on the ASX of A$3.29¹ this equates to a value of approximately C$0.42² per Advantage share.

Orocobre is currently the largest shareholder of Advantage with 34.7% of Advantage’s issued shares.

The Transaction will be completed through a Plan of Arrangement under the Business Corporations Act (British Columbia) (the Arrangement). The Arrangement is subject to approval by the Supreme Court of British Columbia and requires approval of at least 66.66% of the votes cast by Advantage shareholders. The Arrangement also requires approval of a simple majority of the votes cast by Advantage shareholders, excluding for this purpose the votes attaching to the Advantage shares owned by Orocobre and certain other persons required to be excluded under Canadian securities laws.