Why I Believe RB is Still Around Despite .39 cent SPIn 2011 Orbite began running in full throttle a pilot Alumina producing plant which according to management allowed the company to process in excess of 70 tons of Alumina on a semi continuous basis.
Orbite Ramps up Alumina Production
To allow the Company to meet increasing aluminum industry demand and prepare the transition towards a commercial production facility
Montreal Quebec, October 11, 2011 – In another milestone for its Cap-Chat plant achieved again on schedule, Exploration Orbite (ORT.A) is pleased to announce that the production mode of alumina has shifted from a batch process a to semi-continuous process.This clear and significant acceleration in production will allow the Company to meet industry and partner demand as well as prepare for the transition of the plant towards a commercial High-Purity Alumina (HPA) production facility.
“Some 250 to 300 tonnes of clay have already been processed at the Cap-Chat facility, demonstrating the reliability of the Orbite process to operate consistently and produce superior quality material over an extended period of time,” said Joel Fournier, Vice president and Chief Scientific Officer of Orbite. “The company has produced about 70 tonnes of alumina and associated productsand has begun making the necessary investments in order to convert its Cap-Chat facility for continuous production of high-purity alumina,” explained Richard Boudreault, CEO of Orbite.
It is very interesting that RB decided to change course and instead of upgrading from the semi continuous production of SGA to achieving full and continous production of alumina, he decided to travel down a significantly more complex road of investing a huge amount of resources to achieve a continuous production of multible tons a day of high putrity alumina and significant amounts of rare earths.
Shortly before Orbite claimed having achieved success in producing 70 tons of Alumina on a semi continuous basis RB skillfully used his PR machine to raise the many millions of dollars necessary to begin building the HPA plant.
"Significant Activities and Breakthroughs in the third quarter ended September 30, 2011"
"The Company completed its previously announced bought-deal private placement of special warrants (the “Special Warrants”) in the aggregate amount of C$57,500,000 (the “Offering”), which included the exercise in full, by Mackie Research Capital Corporation, the lead underwriter and sole book runner for the Offering, of its option to acquire an additional 15% of Special Warrants initially reserved for the Offering (the “Underwriters’ Option”).The Company issued a total of 17,968,750 Special Warrants at a price of C$3.20 per Special Warrant (the “Offering Price”), for gross proceeds to the Company of C$57,500,000, which includes 2,343,750 Special Warrants issued pursuant to the exercise of the Underwriters’ Option."
Orbite Aluminae completes $25 million convertible debenture offering
On December 13, 2012, Orbite Aluminae Inc. (TSX: ORT) (OTCQX: EORBF) announced that it has completed the previously announced private placement of convertible debentures in the aggregate principal amount of $25,000,000, which includes the exercise in full of the over-allotment option of an additional $5,000,000.
Orbite Aluminae Inc. is a Canadian cleantech company whose innovative technologies are setting the new standard for alumina production.
Euro Pacific Canada Inc. acted as lead agent and sole book-runner on the offering for a syndicate that included Mackie Research Capital Corporation and Roth Capital Partners LLC.
Gowlings advised the syndicate of agents in this transaction with a team that included Paul Fornazzari, Martine Guimond, Jeff Zabalet and Pamela Hojilla (corporate finance); Marie-France Béland (financial services); and Marc-André Godard (tax).
RB magically convinced Mackie and Euro Pacific to invest such an exhuberant sum of money because of his incredible claims which he backed up with impressive paid scientific studies and reports.
Aluminum giants take note of this Quebec junior
Thursday, 28 June 2012
Orbite Aluminae's president and CEO describes plans to conquer part of the high purity and smelter grade alumina industries.
Posted: Thursday , 28 Jun 2012
HALIFAX, NS (MINEWEB) -
It is a humble beginning. In the past year Orbite Aluminae(TSX: ORT) has produced around 100 tonnes of alumina along with rare earth oxides at its Cap-Chat pilot plant in the Gaspé region of Quebec. This has enabled Orbite to test "all sorts of things," Richard Boudreault, Orbite's president and CEO, toldMineweb, as it optimizes how best to extract alumina and rare earths using novel extraction techniques that Orbite has or is patenting.
But if the small pilot plant at Cap Chat is humble, Orbite's plans are not. Orbite has started construction on an expanded facility where it expects to start producing 1,000 tonnes a year of high purity alumina (HPA), along with rare earths, starting in 2013. The economics of the HPA plant, step one for Orbite in a greater quest that also involves taking on more conventional smelter grade alumina (SGA), are looking good.
"We expect margins in the 80- to 90-percent range once in steady state production," Boudreault said.
Orbite has estimated the cost of the initial HPA plant to be between$26 million and $30 million and given Orbite has nearly C$70 million in the bank - in cash and short term investments - Boudreault said the project is fully funded.
To Orbite's bottom line Boudreault sees HPA production as an important near-term cashflow generator that will help it fund a more costly project: Orbite has plans to build a much larger SGA facility using its proprietary methods.
Investors may want to know: Will Orbite's grand plans to finish building an HPA plant and then move onto an SGA facility mean painful dilution? Boudreault suggested not. "We don't expect to. We have enough money to cover equipment costs (for the HPA plant)," Boudreault said. Then he expected "cash flow to pull us into the next step," the much more expensive SGA facility. Financing for that, were the SGA project to go forward, would include debt, along with funding from possible joint venture partners, Boudreault said.
Bottom Line: Like it or Not, Had RB NOT orchestrated his skillful and impressionable PR campaign of being able to quickly complete and commission an incredibally inexpensive and practically derisked HPA plant , Orbite would never have been able to raise the spectacular amount of capital he brought in to ORT's coffers. The premise that Ort would be generating significant amounts of cash in 2013 was the bait RB used to hook Mackie, Euro Pacific and many staunch retail investors into betting the house on ORT's Game Changing process. Having invested and lost all his"integrity Capital" on a business plan that had to be completely overhauled to the great detriment of his staunch and loyal investor base, RB had to bring in a competent underling and convince the market that the future of Orbite and its direction was in his hands. By hiring Glen Kelly and appointing a VP from Veolia among 2 other very competent new board members, Orbite was able to fend off bankruptcy and begin rebuilding its shattered reputation by convincing Crede to arrange significant investment dollars in order to complete and commission the HPA plant along with an impressive $4 million loan by the Canadian government which should be followed by some sort of investment by the Quebec government. The fact that Orbite had succeeded in producing over 100 tons of Smelter Grade Alumina on a semi continuous basis is a good enough reason for Veolia to move forward on picking a site for a Red Mud Remediation. In the world of business especially with a product that can dramatically change the massive industry that it is in, success,would invariably swallow up and completely overshadow the initial severe growing pains the company and its beleaguered investors had to endure. At .39 cents I am continuing to load up knowing that there are great risks ahead. At worst, I believe the SP will move significantly higher to maybe .65 - .75 as we get closer to the end of commissioning in a year to a year and a half from now. I will then decide whether or not to lock in profits by selling and waiting for the final conclusion of the commissioning process to decide whether or not to jump back in albeit at what would probably be a much higher price.Right now RB's status with the company is as exactly as he planned. There is no pressing need for the company to dump him as the market is buying into the Glen Kelly leadership campaign. If orbite succeeds with the commissioning the market as usual will be forgiving and RB will jump back into prominence. GLTA