BRISBANE, AUSTRALIA, 6 October 2022 (GLOBE NEWSWIRE) — Allkem Limited (ASX|TSX: AKE,Alchem” or “Company”) and the International Finance Corporation (“IFCMore”) is the Project Finance Facility (“IFC loan”) for the Sal de Vida project, wholly owned by Allkem, in Catamarca, Argentina.
highlight
- IFC has proposed a US$200 million project finance facility to support the development of Sal de Vida Stage 1 of Allkem.
- IFC’s environmental and social performance requirements are globally recognized and complement the ESG standards already adopted by Sal de Vida by Allkem.
- Subject to finalization of commercial terms and other major outstanding items, including final board approval by IFC and Allkem, the facility is expected to reach financial results by late CY22.
Managing Director and CEO Martin Perez de Solay said: “While we are already in a strong financial position to self-finance the Sal de Vida project, we have further improved the financing structure of Sal de Vida and have invested in dozens of financial and sustainable business solutions. We saw an opportunity to partner with IFC, an institution with years of experience in the mining space.”
“Sal de Vida is expected to bring significant benefits to the economy as a whole, improving financial prospects, economic performance and social outcomes at the national, regional and local community levels.”
Financing the project
IFC’s proposed investment will consist of a $200 million debt package, including up to $100 million from IFC over a period of up to nine years, with the remainder funded by a syndicate of commercial banks.
IFC’s loans and key terms reflect the type of facility, the size and duration of the loan, and current market conditions in the region.
IFC’s proposed financing structure, a syndicated loan arrangement at the asset level, will provide Sal de Vida with a diverse group of international lenders to help de-risk the project’s capital structure.
IFC’s performance standards are globally recognized benchmarks for environmental and social risk management in the private sector. IFC has eight Performance Standards: Risk Management, Labor, Resource Efficiency, Community, Land Transfer, Biodiversity, Indigenous Peoples, and Cultural Heritage.
IFC conducted a robust and detailed environmental assessment, including an assessment of brine extraction and water use, and associated monitoring and mitigation plans. Allkem’s technical team will participate in this process and work to implement IFC’s Environmental and Social Action Plan (ESAP).
A senior consulting firm’s technical assessment of IFC validated the project’s scope, cost, and schedule, and provided a detailed risk analysis to ensure an appropriate mitigation plan was established.
next step
Subject to finalization of the terms of the facility, legal due diligence, approval from the Allkem Board of Directors, approval by IFC Management and the World Bank Group Board of Directors, the facility is expected to close by the end of 2022.
About IFC
A member of the World Bank Group, IFC is the world’s largest development institution focused on the private sector in emerging markets. With operations in more than 100 countries, IFC uses its money, expertise, and influence to create markets and opportunities in developing countries. In FY2022, IFC will commit a record $32.8 billion to private companies and financial institutions in developing countries to harness the power of the private sector to end extreme poverty and transform economies into impacts of current global challenges. fostered shared prosperity while working to For more information, please visit www.ifc.org.
Sal de Vida Project
The Sal de Vida Stage 1 project is primarily designed to produce 15kt per year of battery grade lithium carbonate. The 2022 feasibility study estimates capital expenditure at $271 million and cash operating costs at $3,612 per tonne. Construction to start in January 2022.
Phase 1 project economics include a pre-tax net present value of US$1.23 billion at a 10% discount rate, a 50% pre-tax internal rate of return and a payback of 1.75 years from the start of commercial production. Includes duration.
As of June 30, 2022, Allkem had US$664 million of free cash and cash equivalents available for the development of Sal de Vida and other growth projects.
This release was approved by Martin Perez de Solay, CEO and Managing Director of Allkem Limited.
Important Notices
This investor ASX/TSX release (release) was created by Allkem Limited (ACN 112 589 910) ( Company Also Alchem). Contains general information about the company at the time of this release. The information in this release is intended to be comprehensive or to include all materials that our shareholder or potential investor may require in order to decide whether to trade his Allkem shares. should not be considered. The information in this release is general in nature and does not claim to be complete. allkem.co and the Australian Securities Exchange (ASX) publication. Available at www.asx.com.au.
This release does not take into account your financial situation, investment objectives, tax situation or your specific needs. Nor does anything contained in this release constitute investment, legal, tax, accounting or other advice, nor does it constitute investment, legal, tax, accounting or other advice. .required in a disclosure document or prospectus prepared in accordance with the requirements of Corporations Act 2001 (Cth) (company law). Readers or recipients of this release should consider the appropriateness of the information in light of their own investment objectives and financial situation and should exercise professional investment, Legal, tax and accounting advice appropriate to your particular situation.
This release does not constitute or form part of an offer, invitation, solicitation or recommendation to acquire, purchase, subscribe, sell or otherwise dispose of or issue shares or other financial instruments. It’s not even a thing. Furthermore, this release does not constitute financial products, investment advice (including tax, accounting, or legal advice) or recommendations, nor does any part thereof or the fact of its distribution form the basis for: or relied upon in connection therewith. , a contract or investment decision.
Distribution of this release in other jurisdictions other than Australia may also be restricted by law and all restrictions must be observed. Failure to comply with such restrictions may violate applicable securities laws.
Historical performance information contained in this release is provided for illustrative purposes only and should not (and should not) be relied upon as indicative of future performance.
Forward-Looking Statements
Forward-looking statements are based on current expectations and beliefs and, by their nature, may cause actual results, performance and achievements to differ materially from anticipated future results, performance or expectations. are subject to known and unknown risks and uncertainties. Any outcome expressed or implied by such forward-looking statements, including, but not limited to, the risk of further changes in government regulation, policy or law. risks associated with the continued implementation of the merger between us and Galaxy Resources Ltd; Additional funding may be required for the ongoing development of our projects, but may not be available. fluctuations or declines in commodity prices; uncertainties in mineral resource estimates, economic viability, recoverability and disposal; risks associated with the development of corporate projects; Unexpected increase in capital or operating costs. Uncertainty in achieving expected program milestones for our projects. Risks associated with investments in listed companies such as our company. Risks associated with general economic conditions.
Subject to our ongoing obligations under applicable law or relevant ASX listing rules, we undertake no obligation or commitment to distribute updates or revisions to the forward-looking statements in this release to reflect changes in our expectations regarding the future. deny. A view of a statement or a change in the events, conditions, or circumstances upon which such statement is based. NO CONTENTS OF THIS RELEASE MAY BE CHANGED UNDER NO CIRCUMSTANCES (INCLUDING THAT THIS RELEASE WILL CONTINUE AVAILABLE AND WILL NOT BE SUPERSEDED OR REPLACED BY ANY OTHER RELEASE OR PUBLICATION ON THE SUBJECT MATTER OF THIS RELEASE). does not imply that there was no business of the Company after this date of release.
Statement of eligibility
The information in this announcement that relates to Sal de Vida’s scientific or technical information, production targets, or projected financial information derived from production targets, was released on April 4, 2022, under the heading “Sal de Vida’s capacity is 2 It is extracted from the ASX announcement titled “Increase to 45ktpa in stages”. Available at www.allkem.co and www.asx.com.au. We confirm that all material assumptions underpinning the scientific or technical information, production targets, or forecast financial information derived from production targets in our initial market announcement continue to apply and have not been materially changed. To do.
No for release Also distribution in America
This announcement has been prepared for publication in Australia and will not be released to US telecommunications services or distributed within the United States. This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or any other jurisdiction, and neither this announcement nor anything attached hereto forms the basis of any contract or commitment. not. The securities described in this announcement have not been and will not be registered under the US Securities Act of 1933. Not registered under the US Securities Act of 1933 or subject to applicable US state securities laws.
