Orbite Technologies Inc EORBF

Orbite Aluminae eyes high-grade alumina production in 2015

[hockeyguy123]

https://www.northernminer.com/news/orbite-eyes-high-grade-alumina-production-in-2015/1003064660/

On a recent conference call, Kelly told analysts that Orbite has arranged enough funds to bring the delayed HPA plant to commercial production in the next 12 months.

According to that plan, construction should start by July, followed by commissioning in November and December. The HPA plant should ramp up to 3 tons per day of commercial production in early 2015.

To reach that end goal, the company is carefully working through its to-do list. Of note, it has ordered the calcination system for the production of high-purity alumina from Outotec of Germany, a global minerals and metals processing firm, using a $4 million loan from Canada Economic Development. The company received $3.8 million of that non-interest bearing loan in March and should get the remaining $200,000 in 2015.

Orbite intends to fund the rest of the plant with the financial support of its U.S.-based institutional investor, Crede Capital Group, and the Quebec government.

The provincial government has agreed to make a $10 million equity investment in the company through its financial arm Investissement Quebec. This financing should conclude shortly.

Crede Capital, which closed a $16 million financing with Orbite last December, said it would buy up to $40 million of the company’s debentures. Orbite anticipates closing a $10-million tranche by mid-July, followed by a $30-million tranche, pending shareholder and regulatory approvals.

“Following the challenges of 2013 we have secured sufficient capital to execute on our main priorities,” Kelly said on the call. “We are progressing very well against our 12-month timeline for the completion of the HPA facility and we are excited by our increasing visibility on commercialization.”

The company has budgeted $28.3 million in capital expenditures for the plant this year, of which it has spent $7.3 million in the first quarter.

The HPA plant should initially produce 3 tons per day of high-purity alumina, with a possibility of expanding to 5 tons per day. The plant will be processing ore from the company’s Grande-Vallée aluminous clay deposit in Gaspé, Que.

High-purity alumina typically grades 99.99% (4N) or higher and is mainly used in electronics such as LED lighting applications and displays. The company performed several pilot tests to verify and optimize its production quality at its technology development centre in Laval, Que. It aims to produce alumina with a purity level of 99.999% (5N).

Once the HPA plant is up and running, Orbite will focus on its medium-to long-term goals, which includes using its proprietary processes and technologies to extract other high-value products such as scandium, gallium, rare-earth elements and smelter-grade alumina (SGA) from a variety of feedstock including aluminous clay, bauxite and through the remediation of industrial wastes, red mud and fly-ash.

Orbite notes that it is in talks with potential joint-venture partners, including Glencore Xstrata (LSX: GLEN), to build a SGA plant. It adds the non-binding partnership agreement with UC Rusal of Russia has been terminated, as the parties couldn’t agree on the terms.