Mining Weekly
Orbite's technical report not compliant, Quebec regulator tells company
Edited by : AL CIRCLE
2 min read
Shares in Orbite Aluminae Inc. spiralled as much as 25% on Friday afternoon, after it said Quebec’s financial regulator notified the company the preliminary economic assessment (PEA) for the Grand-Vallée alumina project did not comply with regulations.
“Orbite is reviewing the matter and will update the market as required,” the TSX-listed firm said in a statement, adding that the Autorité des marchés financiers (AMF) gave it to February 24 to publish a revised report.
The PEA, announced in December, found the Grand-Vallée project in Quebec to contain around one-billion tons of aluminous clay deposits, giving it a C$7.7-billion net present value and an internal rate of return at 114%. Payback would be less than a year.
The study anticipated a plant at Gaspe could produce 540 000 t/y of alumina, used to make aluminium, as well as rare earths, silica and hematite.
The AMF notified the Montreal-based company the PEA, which it filed in mid-January "does not comply with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects", it said.
It’s not the first time that Orbite has encountered problems with regulators.
The company had to delay a conference call to discuss the findings of the PEA by a day, after the Investment Industry Regulatory Organisation of Canada halted trading in the company’s shares in Toronto, requesting more information from it regarding the rare metals resource it said it had at the Gaspe project.
Shares in Orbite plunged to as low as C$1.88 apiece immediately after Friday afternoon’s announcement, but gradually regained ground to trade 10.7% lower at C$2.26 a share by the closing bell.
Over 10.1-million shares changed hands, making the stock the most traded in Toronto.
“Orbite is reviewing the matter and will update the market as required,” the TSX-listed firm said in a statement, adding that the Autorité des marchés financiers (AMF) gave it to February 24 to publish a revised report.
The PEA, announced in December, found the Grand-Vallée project in Quebec to contain around one-billion tons of aluminous clay deposits, giving it a C$7.7-billion net present value and an internal rate of return at 114%. Payback would be less than a year.
The study anticipated a plant at Gaspe could produce 540 000 t/y of alumina, used to make aluminium, as well as rare earths, silica and hematite.
The AMF notified the Montreal-based company the PEA, which it filed in mid-January "does not comply with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects", it said.
It’s not the first time that Orbite has encountered problems with regulators.
The company had to delay a conference call to discuss the findings of the PEA by a day, after the Investment Industry Regulatory Organisation of Canada halted trading in the company’s shares in Toronto, requesting more information from it regarding the rare metals resource it said it had at the Gaspe project.
Shares in Orbite plunged to as low as C$1.88 apiece immediately after Friday afternoon’s announcement, but gradually regained ground to trade 10.7% lower at C$2.26 a share by the closing bell.
Over 10.1-million shares changed hands, making the stock the most traded in Toronto.
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