ioneer Ltd joint venture partner Sibanye Stillwater Limited has received approval from the Financial Surveillance Department of the South African Reserve Bank (SARB) in relation to its US$490 million investment for a 50% interest in INR’s Rhyolite Ridge Lithium-Boron Project.
Sibanye is a dual-listed miner, which struck a JV deal with INR to help advance the Rhyolite Project in Nevada.
Under the JV agreement, Sibanye will contribute US$490 million for its 50% interest, with INR retaining the remaining 50% and operator status.
The cash injection is enough to cover the project’s equity funding requirement, while the joint venture team will work together to secure debt funding in the future.
As Proactive previously reported, for its US$490 million investment Sibanye will pick up nearly 150 million INR shares under a US$70 million placement to fast-track construction activities at Rhyolite Ridge.
The SARB approvals were a condition of both the JV transaction and the Sibanye-Stillwater placement.
Funding approval an important milestone
“We are delighted to have reached this important milestone and look forward to working with Sibanye-Stillwater to satisfy the remaining conditions precedent across both transactions including the shareholder vote in relation to the Sibanye-Stillwater placement this week,” ioneer’s managing director Bernard Rowe said.
“Receiving these approvals represents the first step in our long-term partnership with Sibanye-Stillwater, which we expect will unlock significant value at Rhyolite Ridge.
“We are excited to continue working with Sibanye-Stillwater, with a focus on securing debt financing on acceptable terms and progressing the necessary permits and approvals, to ensure the successful delivery of the project.”
Further conditions
While the JV is essentially a fine deal, there are several other conditions in play.
Conditions including the receipt of necessary permits and binding debt funding commitments, are expected to be satisfied in 2H2022.
The Sibanye-Stillwater placement is also conditional on shareholder approval at the upcoming Extraordinary General Meeting on October 21, 2021, and other customary conditions precedent.