Ioneer Receives US Dept of Energy Loan Offer of US$700m for Rhyolite Ridge

THE BOURSE WHISPERER: Ioneer (ASX: INR) has received Conditional Commitment from the US Department of Energy (DOE) for a proposed loan of up to US$700 million to develop the company’s Rhyolite Ridge lithium boron project.

The Rhyolite Ridge lithium-boron project is the most advanced undeveloped lithium project in the United States, which the company has on track to provide an environmentally sustainable, long-life source of both lithium and boron for delivery into the US domestic electric vehicle (EV) supply chain.

The proposed loan is to be made under the DOE Loan Programs Office’s Advanced Technology Vehicles Manufacturing program for a term of approximately 10 years with an interest rate fixed from the date of each advance for the term of the loan at applicable US Treasury rates.

The Conditional Commitment follows nearly two years of extensive and detailed technical, legal, and market due diligence by the DOE.

The proposed DOE loan coupled with Sibanye-Stillwater’s expected equity contribution to secure a 50 per cent interest in the project, is anticipated to fund a hefty amount of preliminary capital expenditure.

The DOE’s conditional commitment reflects continued strong and dedicated support under the Biden Administration to develop a US domestic EV supply chain.

“We are pleased to have finalised the term sheet and received a Conditional Commitment from the DOE for up to a US$700m loan from the ATVM program,” Ioneer managing director Bernard Rowe said.

“The Conditional Commitment is the culmination of 23 months of discussions with and due diligence by the Loan Programs Office and it represents a significant milestone for Rhyolite Ridge.

“We look forward to working with the DOE and Sibanye-Stillwater to complete the remaining milestones to start construction of Rhyolite Ridge.”

 

 

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