Business
Orbite Provides Update on HPA Plant Costs, Completion and Commissioning
Orbite Provides Update on HPA Plant Costs, Completion and Commissioning.
About this update from Orbite Technologies Inc
[{"type":"text","content":"\n \n \n Orbite Provides Update on HPA Plant Costs, Completion and Commissioning\n \n \nOrbite Provides Update on HPA Plant Costs, Completion and Commissioning\n \n MONTREAL, QUEBEC--(Marketwired - Mar 15, 2016) - Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) (\"Orbite\" or the \"Company\") today provides an update on the Company's progress and the cost estimate towards plant completion and commissioning.\n Construction Highlights \n \n \n As reported by the Company on March 7th, 2016, the installation of the air, steam, and process piping and utilities around the calcination system, delayed by the installation of the withheld equipment, is now complete.\n However, due to the complexity of the piping involved and the tight quarters for installation, piping installation advanced at one third of the budgeted and standard installation rate.\n A comprehensive review of costs recently incurred to install those systems and those required to complete specialty piping installation, notably in the decomposer and crystallization sectors, indicate that capital costs initially projected must be increased by approximately 9.9M$, to incorporate the impact of the slower installation pace. This brings the revised total external capital cost budget of the project to 56.2M$ from 46.3M$, as previously contemplated.\n Key areas of cost variance between the updated and previous estimate are notably due to additional labor for piping installation and additional engineering and project management fees related thereto.\n Consequently, and in order to limit construction costs and manage its working capital, the Company has ended overtime work and may postpone certain activities, which will push back the start of commercial production into Q2 of 2016 instead of Q1 as previously contemplated. \n \n \n The Company's current financial resources are insufficient to cover such additional construction costs, and the Company is currently exploring financing alternatives, such as leveraging its estimated $5.6M of 2016 Investment Tax Credits as security for a non-dilutive bridge loan, as it has done in the past.\n \"We are disappointed by this setback but remain highly committed and focused at reaching commercial production at our HPA production facility,\" stated Glenn Kelly, Orbite's CEO. \n \n Commissioning\n \n The testing and start-up sequence of the decom...