Friday, June 12, 2015

Orbite Aluminae Inc. - ORT.t

Orbite Aluminae Inc. - ORT.t is advancing clean technology that enables the extraction of metallurgical-grade alumina, high-purity alumina and high-value elements, including rare earths, from aluminous clay.

The company owns the mining rights on the Grande-Vallée property, the site of an aluminous clay deposit in Québec.




On June 12, 2015 the company released News
Orbite Aluminae Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite", or the "Company") today provides an update on the construction and financing of its high purity alumina plant (HPA) located in Cap-Chat, Quebec.

Financing
-- The Company recently received confirmation from its tax consultants that it should be eligible to receive up to $7.5 million in tax credit refunds for the investments carried out in fiscal 2015.

-- Along the same lines as the bridge loan announced in January (see January 14, 2015 press release), Investissement Quebec ("IQ") has agreed to provide Orbite with a $5.0 million bridge loan, collateralized against the Company's investment tax credits receivable for the year 2015.

-- The loan is conditional on the finalization of customary documentation and Orbite expects the conditions to be similar to the collateralized bridge loan provided by IQ in January 2015.

-- In addition, the Company announces that it will be receiving on or about June 30, 2015, from the Government of Quebec, a $3.0 million installment towards its 2012 and 2013 Quebec Investment Tax Credits, related to equipment purchased for manufacturing and processing in the Gaspe region during the 2012 and 2013 financial years.

-- The Company has to date received or expects to receive shortly the totality of the $25.7 million of tax credits due to the Company related to the 2012 and 2013 financial years. $25.0 million of these funds will have been deposited in a segregated account and serve as security for the convertible debentures issued in 2012. The remaining $0.7 million along with $0.2 million in related interest received will be applied towards the financing of the HPA plant.

-- Accordingly, the Company intends to redeem the 2012 convertible debentures and reduce interest payable by $2.0 million per year. The formal decision to proceed with such redemption will depend on the actual receipt of the remaining investment tax credits as expected.

-- The Company had filed for $27.5 million of tax credits related to the 2012 and 2013 Quebec Investment Tax Credits but had recorded $25.7 million as receivable, net of a provision of $1.8 million. Discussions with the Government of Quebec to qualify the $1.8 million balance as 2012 and 2013 Quebec Investment Tax Credits are ongoing, and if successful, such refund will be also be applied towards the financing of the HPA plant.

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