December 14, 2018
Orocobre has signed three pivotal agreements with joint venture partner Toyota Tsusho Corporation (TTC). Members of the Orocobre Executive Management team visited TTC’s office in Tokyo, Japan to finalise and sign a new Olaroz Shareholders Agreement, Sales and Marketing Agreement and Orocobre Management Agreement (for management of the Olaroz Joint Venture).
The new Olaroz Shareholders Agreement formalises changes to the joint venture that will allow Orocobre to consolidate earnings from Olaroz in reported statutory accounts. Orocobre accounts will be consolidated from 1 January 2019. As previously advised (see ASX Release dated 28 November 2018) Orocobre and TTC agreed on a new joint marketing arrangement for production from both Stage 1 and 2 where the joint partners will work together to set the strategic direction of customer arrangements and commercial terms.
As exclusive sales agent, TTC remains responsible for logistical and contractual arrangements with customers and execution of the agreed sales strategy. A new Management Agreement has been established for the ongoing management of the Olaroz Joint Venture by Orocobre.
Under this new agreement, Orocobre will be paid a management fee of 1.5% of gross revenue reported by the Olaroz Joint Venture from 1 July 2019.
During the visit incoming Orocobre Managing Director/CEO Martín Pérez de Solay met with TTC Board and senior Management team members as well as key personnel from Japan Oil, Gas and Metals National Corporation (JOGMEC).To be the first to hear about Project Updates, ASX Releases, Company News and more – CLICK HERE to subscribe to the Orocobre eNewsletter