U.S. Division of Power Provides Conditional Dedication for a Mortgage of As much as US$700 Million for the Rhyolite Ridge Venture

Highlights:

• The Conditional Dedication¹ from the U.S. Division of Power follows finalisation of a time period sheet with the DOE for a proposed mortgage of as much as US$700 million to develop the Rhyolite Ridge Lithium-Boron Venture
• The proposed mortgage is to be made beneath the DOE Mortgage Packages Workplace’s Superior Expertise Autos Manufacturing program for a time period of roughly 10 years with an rate of interest fastened from the date of every advance for the time period of the mortgage at relevant U.S. Treasury charges
• The Conditional Dedication follows almost two years of in depth and detailed technical, authorized, and market due diligence by the DOE
• The proposed DOE mortgage coupled with Sibanye-Stillwater’s anticipated fairness contribution to safe a 50% curiosity within the Venture, is anticipated to fund a considerable a part of the preliminary capital expenditure estimate, representing a major step in the direction of a whole funding package deal for Rhyolite Ridge
• The DOE’s conditional dedication displays continued sturdy and devoted assist beneath the Biden Administration to develop a U.S. home EV provide chain
• Monetary shut of the mortgage is conditional on a number of achievements together with a optimistic File of Determination and Closing Funding Determination
• Rhyolite Ridge is probably the most superior undeveloped U.S. lithium mission, and it’s on observe to supply an environmentally sustainable, long-life supply of each lithium and boron for supply into the U.S. home EV provide chain

RENO, Nev., Jan. 13, 2023 /PRNewswire/ — ioneer Ltd (“Ioneer” or the “Firm”) (ASX: INR, Nasdaq: IONR) is happy to announce finalisation of a time period sheet and provide of a Conditional Dedication¹ for a proposed mortgage of as much as US$700 million² from the U.S. Division of Power (DOE) Mortgage Packages Workplace for financing the development of the Rhyolite Ridge Lithium-Boron Venture in Nevada, USA.

Underneath the time period sheet, the proposed mortgage is for an quantity as much as US$700 million with a time period of roughly 10 years. The mortgage will probably be at an rate of interest fastened from the date of every advance for the time period of the mortgage at relevant U.S. Treasury charges.

The proposed mortgage is to be made beneath the DOE’s Superior Expertise Autos Manufacturing (ATVM) mortgage program in assist of the Biden Administration’s important minerals technique. DOE has over US$50.0 billion in remaining mortgage authority beneath the ATVM program to assist the manufacture of eligible superior expertise automobiles together with electrical automobiles (EVs), and qualifying elements and supplies, in the USA. Home processing of important minerals, comparable to lithium, to be used in EV batteries qualifies for the ATVM mortgage program³.

After commencing pre-application discussions in February 2021 relating to the DOE’s ATVM mortgage program, Ioneer submitted an utility in October 2021. The applying was deemed considerably full in December 2021 which initiated a third-party due diligence course of that has been ongoing since March 2022. The Mortgage Packages Workplace has undertaken intensive and detailed market, technical and authorized due diligence on each Ioneer and the Rhyolite Ridge Venture. The Conditional Dedication relies on a revised Plan of Operations submitted by Ioneer to the U.S. Bureau of Land Administration (BLM), now within the Nationwide Environmental Coverage Act (NEPA) course of, which fully avoids all direct influence and minimises oblique influence on Tiehm’s buckwheat.

Rhyolite Ridge is probably the most superior undeveloped U.S. lithium mission, and it’s on observe to supply an environmentally sustainable, long-life supply of each lithium and boron for supply into the U.S. home EV provide chain.

The time period sheet and Conditional Dedication from DOE demonstrates its sturdy assist for the Rhyolite Ridge Venture and, if finalised, the mortgage can be the first-ever by the DOE to supply financing for the processing element of a mission the place lithium is extracted and refined at website.

The proceeds from the DOE mortgage, together with Sibanye Stillwater Restricted’s (“Sibanye-Stillwater”) anticipated fairness contribution to safe a 50% stake within the Rhyolite Ridge Venture as soon as all situations precedent for the three way partnership have been fulfilled or waived, as relevant, are anticipated to fund a considerable a part of the preliminary capital expenditure estimate from the revised plan of operations included within the utility submitted to the DOE. Finalising the time period sheet and receiving the Conditional Dedication from the DOE symbolize a major step in the direction of finishing the funding for the Rhyolite Ridge Venture.

The proposed mortgage quantity is essentially based mostly on preliminary and partially full data that the DOE required from Ioneer pertaining to: 1) capital expenditure for a conceptual mine plan; 2) macroeconomic price escalation assumptions; and three) capital bills to satisfy DOE stipulated necessities for participation within the ATVM program. In consequence, the proposed mortgage quantity stays topic to negotiation and documentation of long-form agreements and varied situations and could also be subsequently revised to appropriately match up to date mission economics main as much as monetary shut and upon satisfaction of a number of situations, together with:

• Constructive File of Determination (ROD) issued by the BLM;
• Up to date price estimate together with a P85 price contingency⁴;
• Up to date Useful resource and Reserve statements and mine plan incorporating the southern extension to the deposit;
• Up to date financial mannequin based mostly on the up to date data above;
• All crucial permits; and
• Closing Funding Determination (FID) by each Ioneer and Sibanye-Stillwater.

Ioneer and Sibanye-Stillwater will proceed to progress work on the engineering, full further drilling put up ROD to delineate the southern limits of the deposit the place mining is predicted to start and optimize the mine plan. Primarily based on these outcomes, an up to date capital and working price estimate will probably be offered to stakeholders earlier than making an FID.

The ultimate mortgage is topic to approval of the Ioneer and Sibanye-Stillwater Boards, receipt of all materials governmental consents crucial for the mortgage and the negotiation and execution of binding mortgage paperwork. When binding mortgage paperwork are signed, sure closing situations should be happy earlier than the mortgage dedication from DOE turns into efficient and funds could be superior.

Jigar Shah, Director of DOE’s Loans Packages Workplace commented:

“Rhyolite Ridge is a significant step in the direction of bolstering home lithium manufacturing for clear power applied sciences, and LPO is happy to additional develop an environmentally accountable U.S. provide chain for important supplies.”

James Calaway, Government Chairman of Ioneer commented:

“The Conditional Dedication highlights Rhyolite Ridge’s strategic function in strengthening America’s important mineral provide chain in offering a safe, sustainable, and dependable home supply of lithium for the rising electrical automobile ecosystem.”

Bernard Rowe, Managing Director of Ioneer commented:

“We’re happy to have finalised the time period sheet and acquired a Conditional Dedication from the DOE for as much as a $700mm mortgage from the ATVM program. The Conditional Dedication is the fruits of 23 months of discussions with and due diligence by the Mortgage Packages Workplace and it represents a major milestone for Rhyolite Ridge. We sit up for working with the DOE and Sibanye-Stillwater to finish the remaining milestones to begin development of Rhyolite Ridge.”

Neal Froneman, Chief Government Officer of Sibanye-Stillwater commented:

“Rhyolite Ridge is a world-class lithium mission which is ideally positioned to supply domestically mined and beneficiated metals to additional develop the U.S. battery ecosystem. The proposed mortgage represents a major step in the direction of additional de-risking funding and finally progressing Rhyolite Ridge to manufacturing. We are inspired by the DOE’s dedication to the event of the U.S. nationwide battery metals mining trade by supportive funding packages such because the ATVM program and the dedication of the Ioneer crew so far, geared toward making certain that this high-quality mission could be swiftly superior as soon as the crucial permits have been granted and excellent situations have been fulfilled.   It is a vital milestone within the growth of this important mission which guarantees to positively contribute to lowering local weather change.”

“Sibanye-Stillwater’s battery metals technique is primarily targeted on the U.S. and Europe in recognition of the growing want for battery metals for the transition in the direction of higher electrification of their established automotive industries. Sibanye-Stillwater is effectively positioned to be a supportive companion and add vital worth to Rhyolite Ridge given its complementary world mining expertise and experience, together with its US mining operational and mission growth experience, hydrometallurgical experience and deep relationships with automakers and automotive OEMs globally.”

DOE’s weblog put up in reference to its Conditional Dedication to Rhyolite Ridge is on the Mortgage Packages Workplace web site. 

Transaction Advisers

Ioneer’s monetary adviser is Goldman Sachs, and its authorized adviser is Vinson & Elkins (US) and Ashurst (Australia).

Sibanye-Stillwater’s monetary adviser is Macquarie Capital, and its authorized adviser is Davis Polk & Wardwell LLP (United States).

About Ioneer

Ioneer Ltd is the 100% proprietor of the Rhyolite Ridge Lithium-Boron Venture situated in Nevada, USA, the one recognized lithium-boron deposit in North America and certainly one of solely two recognized such deposits on the earth. The Definitive Feasibility Research (DFS) accomplished in 2020 confirmed Rhyolite Ridge as a world-class lithium and boron mission that’s anticipated to develop into a globally vital, long-life, low-cost supply of lithium and boron very important to a sustainable future. In September 2021, Ioneer entered into an settlement with Sibanye-Stillwater to advance the Rhyolite Ridge mission.  Following the satisfaction of all situations precedent of the settlement, Sibanye-Stillwater will purchase a 50% curiosity in a three way partnership, with Ioneer sustaining a 50% curiosity and retaining the operational administration duty for the three way partnership. Ioneer signed separate offtake agreements with Ford Motor Firm and PPES (three way partnership between Toyota and Panasonic) in 2022 and Korea’s EcoPro Innovation in 2021.

About Sibanye-Stillwater

Sibanye-Stillwater is a multinational mining and metals Group with a various portfolio of mining and processing operations and tasks and investments throughout 5 continents. The Group can be one of many foremost world PGM autocatalytic recyclers and has pursuits in main mine tailings retreatment operations. For extra data, go to our web site at www.sibanyestillwater.com.

This ASX launch has been authorised by Ioneer Managing Director Bernard Rowe.

Contacts:

Essential discover and disclaimer

Ahead-looking statements

This announcement comprises sure forward-looking statements and feedback about future occasions, together with Ioneer’s expectations concerning the Venture and the efficiency of its companies. Ahead wanting statements can usually be recognized by means of forward-looking phrases comparable to ‘anticipate’, ‘anticipate’, ‘possible’, ‘intend’, ‘ought to’, ‘may’, ‘might’, ‘predict’, ‘plan’, ‘suggest’, ‘will’, ‘consider’, ‘forecast’, ‘estimate’, ‘goal’ and different related expressions inside the that means of securities legal guidelines of relevant jurisdictions. Indications of, and steering on, the Conditional Dedication, financing plans, future earnings or monetary place or efficiency are additionally forward-looking statements.

Ahead-looking statements contain inherent dangers and uncertainties, each common and particular, and there’s a danger that such predictions, forecasts, projections and different forward-looking statements won’t be achieved. Ahead-looking statements are offered as a common information solely and shouldn’t be relied on as a sign or assure of future efficiency. Ahead wanting statements contain recognized and unknown dangers, uncertainty and different elements which may trigger Ioneer’s precise outcomes to vary materially from the plans, goals, expectations, estimates, and intentions expressed in such forward-looking statements and lots of of those elements are outdoors the management of Ioneer. Such dangers embody, amongst others, uncertainties associated to the finalisation, execution, and funding of the DOE financing, together with our potential to efficiently negotiate definitive agreements and to fulfill any funding situations, in addition to different uncertainties and danger elements set out in filings made occasionally with the U.S. Securities and Alternate Fee and the Australian Securities Alternate.  As such, undue reliance shouldn’t be positioned on any forward-looking assertion. Previous efficiency is just not essentially a information to future efficiency and no illustration or guarantee is made by any particular person as to the chance of accomplishment or reasonableness of any forward-looking statements, forecast monetary data or different forecast. Nothing contained on this announcement, nor any data made obtainable to you is, or shall be relied upon as, a promise, illustration, guarantee or assure as to the previous, current or the long run efficiency of Ioneer.

Besides as required by regulation or the ASX Itemizing Guidelines, Ioneer assumes no obligation to supply any further or up to date data or to replace any forward-looking statements, whether or not on account of new data, future occasions or outcomes, or in any other case.

¹ A conditional dedication is obtainable by DOE previous to issuing a mortgage and signifies that DOE expects to assist the Rhyolite Ridge Venture, topic to the satisfaction of sure situations together with fulfilling remaining authorized, contractual, and monetary necessities.
² Excludes estimated capitalised curiosity prices. Roughly US$700 million in advances from DOE mortgage is proposed to be obtainable to fund eligible prices of the Rhyolite Ridge Venture.
³ Additional details about the ATVM mortgage program is out there at https://www.power.gov/lpo/advanced-technology-vehicles-manufacturing-loan-program.
⁴ A value contingency to the bottom estimate to attain a likelihood on the 85^th percentile.

SOURCE ioneer