U.S. Department of Energy Offers Conditional Commitment for a Loan of Up to US$700 Million for the Rhyolite Ridge Project

ioneer Ltd (“Ioneer” or the “Firm”) (ASX: INR, Nasdaq: IONR) is happy to announce finalisation of a time period sheet and supply of a Conditional Commitment1 for a proposed mortgage of as much as US$700 million2 from the U.S. Division of Power (DOE) Mortgage Applications Workplace for financing the development of the Rhyolite Ridge Lithium-Boron Venture in Nevada, USA.

Highlights:

• The Conditional Commitment1 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 Applications 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 practically two years of intensive 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 direction of an entire funding package deal for Rhyolite Ridge
• The DOE’s conditional dedication displays continued sturdy and devoted help 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 Document of Resolution and Closing Funding Resolution
• Rhyolite Ridge is essentially the most superior undeveloped U.S. lithium challenge, and it’s on monitor to supply an environmentally sustainable, long-life supply of each lithium and boron for supply into the U.S. home EV provide chain

Beneath 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 might 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 help of the Biden Administration’s important minerals technique. DOE has over US$50.0 billion in remaining mortgage authority beneath the ATVM program to help the manufacture of eligible superior know-how autos together with electrical autos (EVs), and qualifying elements and supplies, in the US. Home processing of important minerals, equivalent 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 software in October 2021. The appliance 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 Applications 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 utterly avoids all direct affect and minimises oblique affect on Tiehm’s buckwheat.

Rhyolite Ridge is essentially the most superior undeveloped U.S. lithium challenge, and it’s on monitor 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 help for the Rhyolite Ridge Venture and, if finalised, the mortgage could be the first-ever by the DOE to supply financing for the processing part of a challenge 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 circumstances 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 software submitted to the DOE. Finalising the time period sheet and receiving the Conditional Dedication from the DOE symbolize a major step in direction of finishing the funding for the Rhyolite Ridge Venture.

The proposed mortgage quantity is essentially primarily based on preliminary and partially full info 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 fulfill DOE stipulated necessities for participation within the ATVM program. Because of this, the proposed mortgage quantity stays topic to negotiation and documentation of long-form agreements and varied circumstances and could also be subsequently revised to appropriately match up to date challenge economics main as much as monetary shut and upon satisfaction of a number of circumstances, together with:

• Constructive Document of Resolution (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 primarily based on the up to date info above;
• All essential permits; and
• Closing Funding Resolution (FID) by each Ioneer and Sibanye-Stillwater.

Ioneer and Sibanye-Stillwater will proceed to progress work on the engineering, full extra drilling publish ROD to delineate the southern limits of the deposit the place mining is anticipated to start and optimize the mine plan. Primarily based on these outcomes, an up to date capital and working price estimate might 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 essential for the mortgage and the negotiation and execution of binding mortgage paperwork. When binding mortgage paperwork are signed, sure closing circumstances should be glad earlier than the mortgage dedication from DOE turns into efficient and funds could be superior.

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

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

James Calaway, Govt 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 obtained a Conditional Dedication from the DOE for as much as a $700mm mortgage from the ATVM program. The Conditional Dedication is the end result of 23 months of discussions with and due diligence by the Mortgage Applications Workplace and it represents a major milestone for Rhyolite Ridge. We look ahead to working with the DOE and Sibanye-Stillwater to finish the remaining milestones to begin development of Rhyolite Ridge.”

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

“Rhyolite Ridge is a world-class lithium challenge which is ideally positioned to supply regionally mined and beneficiated metals to additional develop the U.S. battery ecosystem. The proposed mortgage represents a major step in direction of additional de-risking funding and in the end 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 via supportive funding applications such because the ATVM program and the dedication of the Ioneer crew thus far, geared toward making certain that this high-quality challenge could be swiftly superior as soon as the essential permits have been granted and excellent circumstances have been fulfilled. It is a vital milestone within the growth of this important challenge which guarantees to positively contribute to decreasing local weather change.”

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

DOE’s weblog publish in reference to its Conditional Dedication to Rhyolite Ridge is on the Mortgage Applications 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 one in all solely two recognized such deposits on the earth. The Definitive Feasibility Examine (DFS) accomplished in 2020 confirmed Rhyolite Ridge as a world-class lithium and boron challenge that’s anticipated to turn out to be 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 challenge. Following the satisfaction of all circumstances 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 initiatives and investments throughout 5 continents. The Group can also be one of many foremost international PGM autocatalytic recyclers and has pursuits in main mine tailings retreatment operations. For extra info, go to our web site at www.sibanyestillwater.com.

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

Contacts:

Necessary 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 trying statements can typically be recognized by way of forward-looking phrases equivalent to ‘anticipate’, ‘anticipate’, ‘probably’, ‘intend’, ‘ought to’, ‘may’, ‘might’, ‘predict’, ‘plan’, ‘suggest’, ‘will’, ‘imagine’, ‘forecast’, ‘estimate’, ‘goal’ and different related expressions throughout the which 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 normal and particular, and there’s a danger that such predictions, forecasts, projections and different forward-looking statements is not going to be achieved. Ahead-looking statements are offered as a normal information solely and shouldn’t be relied on as a sign or assure of future efficiency. Ahead trying statements contain recognized and unknown dangers, uncertainty and different components which might trigger Ioneer’s precise outcomes to vary materially from the plans, aims, expectations, estimates, and intentions expressed in such forward-looking statements and plenty of of those components are outdoors the management of Ioneer. Such dangers embrace, amongst others, uncertainties associated to the finalisation, execution, and funding of the DOE financing, together with our means to efficiently negotiate definitive agreements and to fulfill any funding circumstances, in addition to different uncertainties and danger components set out in filings made on occasion 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 will not be essentially a information to future efficiency and no illustration or guarantee is made by any particular person as to the probability of feat or reasonableness of any forward-looking statements, forecast monetary info or different forecast. Nothing contained on this announcement, nor any info made out there 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 legislation or the ASX Itemizing Guidelines, Ioneer assumes no obligation to supply any extra or up to date info or to replace any forward-looking statements, whether or not on account of new info, 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 help the Rhyolite Ridge Venture, topic to the satisfaction of sure circumstances 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 out there 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 price contingency to the bottom estimate to attain a chance on the eighty fifth percentile.

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