Orbite Climbs After Glencore Alumina Deal: Montreal Mover
Orbite Aluminae Inc. (ORT), a developer of mineral deposits in Quebec, rose the most in four weeks after it said Glencore Xstrata Plc (POT) will buy output from a proposed alumina plant in the Canadian province.
Orbite climbed 23 percent to 86 Canadian cents in Toronto, the biggest one-day gain for the Montreal-based company’s shares since May 21.
Glencore, based in Baar, Switzerland, agreed to buy all of the smelter-grade alumina from the facility under a 10-year off-take agreement when commercial production begins, Orbite said yesterday in a statement after the markets closed. Alumina is a raw material used to make aluminum.
“The agreement also foresees that Orbite and Glencore will undertake negotiations relating to Glencore’s potential financial participation in the ownership and operation” of the proposed plant, Orbite said in the statement.
No timetable has been set for the talks, Orbite said.
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