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Orbite Aluminae shares surge on deal with Glencore
Edited by : AL CIRCLE
2 min read
Shares in Orbite Aluminae Inc. soared more than 25 per cent in heavy trading on news the company has locked up a buyer for all of its anticipated production of smelter-grade alumina at its Quebec plant.
The stock rose to a high of 99 cents before easing back to 86 cents – up 16 cents on the day, or 22.8 per cent – in trading on the Toronto Stock Exchange on Tuesday.
The junior mining company said it has struck a deal with Glencore International AG to sell to Glencore 100 per cent of the smelter-grade alumina from Orbite’s proposed plant in Cap-Chat, Que.
The agreement is for a 10-year period from the start of commercial production.
Orbite also said on Tuesday it plans to discuss the possibility of Glencore taking a financial position in the ownership and operation of the Cap-Chat facility.
Montreal-based Orbite says it has completed the basic engineering work for the smelter-grade alumina plant, using clay from its Grande-Vallée deposit in the Gaspé region of Quebec. Under chief executive Richard Boudreault, Orbite has developed a patented, low-cost technology that extracts alumina from clay, through an acid-leaching process.
The company says it also plans to produce other high-value byproducts such as rare earth and rare metal oxides.
The stock rose to a high of 99 cents before easing back to 86 cents – up 16 cents on the day, or 22.8 per cent – in trading on the Toronto Stock Exchange on Tuesday.
The junior mining company said it has struck a deal with Glencore International AG to sell to Glencore 100 per cent of the smelter-grade alumina from Orbite’s proposed plant in Cap-Chat, Que.
The agreement is for a 10-year period from the start of commercial production.
Orbite also said on Tuesday it plans to discuss the possibility of Glencore taking a financial position in the ownership and operation of the Cap-Chat facility.
Montreal-based Orbite says it has completed the basic engineering work for the smelter-grade alumina plant, using clay from its Grande-Vallée deposit in the Gaspé region of Quebec. Under chief executive Richard Boudreault, Orbite has developed a patented, low-cost technology that extracts alumina from clay, through an acid-leaching process.
The company says it also plans to produce other high-value byproducts such as rare earth and rare metal oxides.
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