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Ivanplats Receives Final $225 Million Prepayment Under Platreef Streaming Agreements
Updated engagement letters signed with Société Générale and Nedbank for ex...
About this update from Ivanhoe Mines Ltd. Class A
[{"type":"text","content":"Ivanplats Receives Final $225 Million Prepayment Under Platreef Streaming AgreementsUpdated engagement letters signed with Société Générale and Nedbank for expanded $150 million Platreef senior debt facilityJohannesburg, South Africa--(Newsfile Corp. - September 15, 2022) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chair Robert Friedland and President Marna Cloete announce today that the company's South African subsidiary, Ivanplats, has received the second and final prepayment of the $300 million Platreef streaming agreement. In addition, the company has signed updated engagement letters with its mandated lead arrangers, Société Générale and Nedbank, to increase the Platreef project senior debt facility from $120 million to $150 million. The expanded facility will provide further optionality in terms of project financing, and limit potential equity contributions for Platreef's Phase 1 development. All figures are in U.S. dollars unless otherwise stated.As announced on December 8, 2021, Ivanplats concluded $300 million in stream-financing agreements with Orion Mine Finance and Nomad Royalty Company (which was subsequently acquired by Sandstorm Gold Royalties) for its world-scale Platreef palladium-rhodium-nickel-platinum-copper-gold project in Limpopo Province, South Africa. This included a $200 million gold-streaming facility and a $100 million palladium and platinum streaming facility. The first prepayment of $75 million was received upon the closing of the transaction in December 2021. The fully realized stream agreements allow Ivanplats to advance Platreef’s ongoing Phase 1 construction activities, with an initial capital cost of $488 million as set out in the Platreef feasibility study announced in February 2022. Discussions are underway to finalize a senior debt facility of up to $150 million with mandated lead arrangers Société Générale and Nedbank, which remains subject to due diligence. The stream facilities are subordinated to any future senior secured financing. Ivanplats remains flexible to raise additional debt or equity, and has pre-agreed intercreditor arrangements with the stream purchasers for future senior debt. The stream facilities are guaranteed by Ivanplats and secured over its assets, as well as Ivanhoe and the Japanese cons...