The Sal de Vida Stage 1 Project is designed to produce 15ktpa of predominately battery-grade lithium carbonate
Allkem secures project financing facility for Sal de Vida. (Credit: A. Krebs from Pixabay)
Allkem Limited (ASX|TSX: AKE, “Allkem” or the “Company”) and the International Finance Corporation (“IFC”) have agreed a non-binding term sheet for a project financing facility (“IFC loan”) for the wholly Allkem owned Sal de Vida Project located in Catamarca Province, Argentina.
IFC’s proposed investment comprises a US$200 million debt package, including up to US$100 million from IFC for a tenor of up to 9 years and the remainder funded by a syndicate of commercial banks.
The IFC loan and its key terms reflect current market conditions for this facility type, loan size, tenor and region. IFC’s proposed financing structure will provide Sal de Vida with a diversified international lender group in a syndicated loan agreement at the asset level and will help de-risk the capital structure of the project.
IFC’s Performance Standards are globally recognised as a benchmark for environmental and social risk management in the private sector. IFC has eight Performance Standards: Risk Management, Labour, Resource Efficiency, Community, Land Resettlement, Biodiversity, Indigenous People and Cultural Heritage.
A robust and detailed environmental assessment was conducted by IFC, including the assessment of brine extraction and water usage and the associated monitoring and mitigation plan. Allkem technical teams participated in the process and will work to implement the IFC’s Environmental and Social Action Plan (ESAP).
IFC technical assessment through senior consulting firms validated the project scope, cost and schedule and has provided a detailed risk analysis to ensure proper mitigation plans are established.
Source: Company Press Release