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OROCOBRE Limited (ASX: ORE) has completed a 'significantly oversubscribed' capital raising for $32.3 million.
The funds were raised through a placement to domestic and international shareholders.
Approximately 17 million shares were issued at a price of $1.90 per share, representing a 9.5 per cent discount to the ASX closing price prior to the company entering into a trading halt on 25 June.
Proceeds will be used primarily to fund the Olaroz Lithium Facility joint venture company, Sales de Jujuy SA (SDJ SA), where ORE's ownership structure requires the company to contribute 75 per cent of the project funding.
The funds will be provided to SDJ SA through a shareholder loan mechanism.
Production has been slower than expected due to equipment and early operational issues, but these areas have now been identified and rectified.
Meanwhile, this has impacted the working capital position of SDJ SA and during the period, operating costs of a typically fixed nature were incurred alongside lower revenue due to slower production quantities.
Managing director Richard Seville says the company is pleased with the level of interest shown in the capital raising.
"We are both very appreciative of the strong level of support shown by existing shareholders and also pleased in the level of interest shown by new institutional shareholders," says Seville.
"We are now appropriately funded to take Olaroz through to becoming a profitable operating company. It is a great time to be in the lithium sector and we will continue to work hard to deliver the results our shareholders expect and to take full advantage of being in such a favourable sector."
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