Orbite Aluminae (TSX:ORT
), a Saint-Laurent Quebec-based exploration and development stage company engaged in the extraction of alumina and various ores utilizing environmentally friendly methods, announced today that the company had received formal approval from the Government of Quebec for a $10.0 million equity investment by Investissement Quebec (“IQ”), a mandatory of the Government of Quebec.
According to the news release
, the announcement was made at Orbite’s High Purity Alumia (“HPA”) facility in Cap-Chat, Quebec with the Member of the National Assembly of Quebec for Gaspe, Minister for Regions and Minister responsible for the Gaspesie-Iles-de-la-Madeleine region and the Bas-St-Laurent region, Mr. Gaetan Lelievre.
Mrs. Elaine Zakaib, Quebec Minister for Industrial Policy and the Banque de developpement economique du Quebec, commented, “We have the privilege, in Québec, to benefit from dynamic and innovative businesses like Orbite Aluminae, to insure our competitiveness and reinforce our expertise in the sector of transformation of mining products.”
She then added, “This structuring project positions Québec as a provider of a niche product used for high-tech applications, in addition to maintaining the economic vitality of the Gaspésie-Îles-de-la-Madeleine region.”
The decision to invest in Orbite was based on a extensive technical and financial due diligence of the HPA facility by an independent third party engineering firm. Transaction terms, including pricing and timing are anticipated to be solidified in the next three weeks.
Glenn Kelly, Orbite president and CEO, stated, “The significant contribution from the government of Québec, following a stringent independent review, is a testament to the work carried out by our new management and engineering team during the last six months.”
He then summed up, “We are honoured to have the government of Québec as a major shareholder in Orbite and their investment will be used towards the completion of our HPA production facility.”
Orbite was in the news recently when the company announced changes to management in the middle of February.
Shares climbed 10.81% on the news to $0.41 per share.
Currently there are 228.1m outstanding shares with a market cap of $93.5 million.