Allkem signs US$130M project financing for Sal de Vida - The Pick Online Magazine

Allkem Limited (ASX: AKE) has signed a US$130 million project financing facility with the International Finance Corporation (IFC) for the Sal de Vida Project located in Catamarca Province, Argentina.

The Sal de Vida Project is tier 1 lithium brine project is located in Catamarca Province on the Salar del Hombre Muerto, ~1,400km northwest of Buenos Aires, Argentina and ~200km from Allkem’s flagship Olaroz Lithium Facility.

Highlights

• An IFC project financing facility for the development of Sal de Vida Project Stage 1 (SDV) has been signed for up to US$130M over a 10-year period consisting of an A loan of up to $100M and B loan of up to $30M.

Allkem says it is in discussions with another lender to increase the project finance facility by a further $50M, for a total financing package of $180M.

• This project financing facility has been structured as a green and sustainability-linked loan. IFC’s environmental and social performance requirements are globally recognised and the awarding of a sustainability-linked, green loan to the facility is recognition and validation of the high ESG standards already adopted at Sal de Vida by Allkem.

• A sustainability-linked green loan combines ambitious environmental and social targets. These targets and commitments support the responsible and sustainable development of lithium by Allkem for a greener future and regional economic growth in the province of Catamarca.

“We are proud to partner with IFC to ensure long-term safe and sustainable operations, responsible products, and thriving communities,” Managing Director and CEO, Martin Perez de Solay, said.

“We are committed to the highest sustainability standards for Sal de Vida so that it will contribute to the economy of Catamarca via local employment, the development of local supply chains, and community development programmes.”