Orbite Files Base Shelf Prospectus
April 3, 2013 (Source: Orbite Aluminae) Montreal, QC — Orbite Aluminae Inc. (TSX: ORT / OTCQX: EORBF) (“Orbite” or the “Company”) is pleased to announce that it is increasing the Company’s financial flexibility by having filed a preliminary short form base shelf prospectus (the “Prospectus”) with the securities regulatory authorities in each of the provinces of Canada. The Prospectus is not a commitment to undertake any financing but provides flexibility over the normal course of business to fund the Company’s projects over the 25-month period that it remains effective.
“Orbite is still a development-stage company with multiple projects, each with different capital requirements over the next two years. Once filed, this shelf prospectus will increase the Company’s financial flexibility to fund our projects in a timely and effective manner during the next 25-months,” stated Richard Boudreault, Orbite’s President and CEO. “We are continuously assessing financing options to advance Orbite’s projects, including joint-venture partnerships, project debt financings, strategic investments and equity financings, all with the ultimate objective of maximizing shareholder value.”
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These filings, when made final, will allow the Company to make offerings of debt securities, common shares, warrants, subscription receipts or units comprising any combination of the foregoing (all of the foregoing, collectively, the “Securities”), up to an aggregate offering of $300,000,000 during a 25-month period that the final short form base shelf prospectus, including any amendments thereto, remains effective. Securities may be offered separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of sale and set forth in an eventual accompanying shelf prospectus supplement and, subject to applicable regulations, may include public offerings of debt or equity, or strategic investments.
Unless otherwise specified in a prospectus supplement, the net proceeds from the sale of the Securities that may be offered under the Prospectus, and the applicable prospectus supplement, will be used by the Company for general corporate purposes, for completion of its ongoing National Instrument 43-101 compliant feasibility study for its proposed smelter grade alumina (“SGA”) production plant, for detailed engineering and construction costs of the proposed SGA production plant, for detailed engineering and construction costs for the proposed Veolia Red Mud plant, for advancement and optimization of the high purity alumina plant towards its full capacity, and for ongoing research and development initiatives.
Orbite Aluminae Inc. is a Canadian company whose innovative and proprietary processes can produce alumina and other high-value by-products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, without generating any wastes, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud and fly ash. Orbite is currently commissioning and optimizing its first commercial high-purity alumina (HPA) production plant in Cap-Chat, Québec. A Feasibility Study for Orbite’s first smelter-grade alumina (SGA) production plant, using clay mined from its Grande Vallée deposit, is anticipated by Q1 2014. Orbite signed an exclusive worldwide collaborative agreement with Veolia Environmental Services for the remediation of red mud using the Orbite processes with the intent to begin construction of a Veolia-operated demonstration plant in 2014. The company owns the intellectual property rights to 9 patents and 32 pending patent applications in 10 different countries. Its intellectual property portfolio now contains 14 intellectual property families.
Certain information contained in this document may include “forward-looking information”. Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management’s good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management’s Discussion and Analysis (MD&A) entitled “Risk and Uncertainties” as filed on March 28, 2013 on SEDAR, and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.
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