Sibanye-Stillwater and ioneer to establish a 50:50 joint venture with respect to ioneer’s US-based Rhyolite Ridge Lithium-Boron project.
Sibanye-Stillwater Limited (Tickers JSE: SSW and NYSE: SBSW)(“SibanyeStillwater”)announce that it has reached agreement with ioneer Limited (“ioneer”) to establish a joint venture company (the “Joint Venture”) with respect to the Rhyolite Ridge Lithium-Boron Project (“Rhyolite Ridge”).
Following the satisfaction of all conditions precedent as detailed in Transaction Details, paragraph 4 below, Sibanye-Stillwater will contribute US$490 million for a 50% interest in the Joint Venture, with ioneer maintaining a 50% interest and retaining the operational management responsibility for the Joint Venture.
In addition, Sibanye-Stillwater has agreed to subscribe for a strategic placement of new ordinary shares in ioneer equal to 7.1% of ioneer’s ordinary share capital post placement (“Placement Shares”), for approximately US$70 million1 (“ioneer Placement”).
The Placement Shares will be issued to Sibanye-Stillwater at an issue price of A$0.655 per share, being ioneer’s 10-day VWAP as of ASX market close on 15 September The ioneer Placement is subject to (among other conditions precedent) the approval of ioneer shareholders at an Extraordinary General Meeting expected to be held on 21 October 2021.
Together with the ioneer Placement, the Joint Venture represents Sibanye-Stillwater’s third announced transaction in the battery materials sector following the Keliber lithium and Sandouville nickel transactions.
The Joint Venture provides Sibanye-Stillwater with a 50% interest in a strategic lithium-boron asset in the US, positioning Sibanye-Stillwater for value creation and growth in the US battery metals supply chain.
IONEER OVERVIEW
ioneer is an Australian Securities Exchange listed mining development company with a current market capitalisation of US$1.0bn and is the 100% owner of Rhyolite Ridge.
RHYOLITE RIDGE OVERVIEW
Rhyolite Ridge is a large, shallow lithium-boron deposit, located close to existing infrastructure. Rhyolite Ridge is expected to be one of the first large scale US lithium projects to enter production, currently anticipated in H2 2024.
The Rhyolite Ridge Definitive Feasibility Study, completed in April 2020, supports (100% project basis)2:
- 22ktpa lithium hydroxide and 174ktpa boric acid average production
- 26-year mine life underpinned by 0.6mt lithium carbonate and 5.3mt boric acid of Ore Reserves and 1.25mt lithium carbonate and 11.9mt boric acid of Mineral Resources
- First quartile cost position (after boric acid revenue credits)
- Strong ESG credentials, with a small mine footprint and a clear competitive advantage from a CO2 emissions and water usage perspective relative to other projects
- Net Present Value (8%) of US$1.3bn
ioneer has attracted a high-quality team which has been advancing Rhyolite Ridge since 2016, together with world class technical experts, including Fluor, Golder, Veolia and Kemetco Research.
Sibanye-Stillwater and ioneer to establish a 50:50 joint venture with respect to ioneer’s US-based Rhyolite Ridge Lithium-Boron project, Johannesburg, September 16, 2021