Shares in mineral exploration company Orocobre (ASX:ORE) have leaped 27.1% today, since the company announced it was entering into a lithium-potash JV with Toyota Tsusho.
Under the arrangement, Toyota Tsusho will acquire a 25% interest in the Salar de Olaroz Lithium-Potash Project in Argentina, in exchange for a cash injection of US$4.5 million ($4.9 million).
The proceeds will be used to fund a feasibility study into the project. Toyota Tsusho will then acquire the stake at a cost based on figures determined during the study.
Toyota Tsusho will also be responsible for securing a Japanese government-guaranteed debt facility for at least 60% of the project’s costs.