ioneer's Rhyolite Ridge lithium-boron project in US poised to take advantage of global shift toward sustainable energy solutions
- ioneer strikes up US$490 million joint venture with Sibanye Stillwater
- ioneer secures first binding lithium offtake agreement with EcoPro Innovation
- ioneer hails US$490 million investment to see Rhyolite Ridge into production
Quick facts: ioneer Ltd
Price: 0.68 AUD
Market Cap: $1.3 billion
About the company
ioneer Ltd (ASX:INR) is expected to be the first new lithium chemicals producer in the US in over 60 years and become a major supplier of lithium and boron products to the US and global markets for many decades.
The company owns a 100% interest in the Rhyolite Ridge Lithium-Boron Project in Nevada, USA, the only known lithium-boron deposit in North America and one of only two known such deposits in the world.
A definitive feasibility study (DFS) completed in April 2020 confirmed Rhyolite Ridge as a world-class lithium and boron project that is expected to become a globally significant, long-life, low-cost source of lithium and boron vital to a sustainable future.
How it is doing
ioneer Ltd has struck up a joint venture agreement with dual-listed miner Sibanye Stillwater Ltd in a bid to advance the Rhyolite Ridge Lithium-Boron Project in Nevada.
Under the agreement, Sibanye will contribute US$490 million to secure a 50% interest in the lithium play, while ioneer will retain the remaining 50% and operator status.
The multi-million-dollar 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.
In addition to the 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.
ioneer Ltd has awarded a major engineering and equipment supply contract to Veolia Water Technologies Inc for the development of its wholly-owned Rhyolite Ridge Lithium-Boron Project in Nevada, US.
This is the single largest supplier package for the Rhyolite Ridge Project and is a major step towards construction and development.
Insight: ioneer secures first binding lithium offtake agreement with EcoPro Innovation
ioneer Ltd (ASX:INR) (OTCMKTS:GSCCF) (FRA:4G1) has inked its first binding offtake supply agreement with EcoPro Innovation Co Ltd, a subsidiary of a South Korean battery maker and the world’s second-largest nickel-cobalt-aluminium oxide (NCA) cathode materials manufacturer.
The offtake deal has a three-year term, over which the ASX-listed lithium-boron developer will provide EcoPro Innovation with lithium carbonate from its Rhyolite Ridge project in Nevada, USA.
What management says
ioneer's Bernard Rowe talks Proactive's Andrew Scott through the news this morning that they've reached an agreement to establish a joint venture with Sibanye Stillwater Limited to develop the flagship Rhyolite Ridge lithium-boron project located in Nevada, USA.
He says Sibanye-Stillwater will contribute US$490 million for a 50% interest in the JV with ioneer to maintain a 50% interest and retain operatorship.
Sibanye-Stillwater is a US$10 billion global mining company with a proven track record in large-scale mining projects and has committed to become an important player in the battery materials supply chain.
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