BRISBANE, Australia – Orocobre Ltd. (TSX:ORL) says it has purchased Argentine boron minerals and refined chemicals producer, Borax Argentina S.A., from Anglo-Australian mining giant Rio Tinto PLC entities and Borax Europe Ltd.
The purchase price is US$8.5 million of which $5.5 million has been paid with $1 million to be paid annually over the coming three years.
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The consideration comprises $3.7 million for all issued shares of Borax Argentina and $4.8 million paid to Borax Europe Ltd, a Rio Tinto company as consideration for the assignment of a loan made by it to Borax Argentina.
The acquired business has annual revenue of approximately US$23 million and annual production of approximately 35,000 tonnes of boron based products and mineral concentrates.
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Borax Argentina has been in operation for over 50 years, and operates three open pit mines in the South American country along with concentration plants and refinery facilities.
Orocobre Ltd. says although Borax Argentina is only a relatively small and marginally profitable producer, it is asset rich in terms of mines, plant and human resources.
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