iGO Tianqi, page-43

https://www.afr. com/street-talk/more-than-a-mine-to-igo-s-lithium-play-20201208-p56lhk

Street Talk
More than a mine to IGO's lithium play
Sarah Thompson, Anthony Macdonald and Tim Boyd
Dec 8, 2020 – 9.32pm

IGO Ltd will get its hands on a highly strategic lithium plant as part of its planned acquisition of a stake in the Greenbushes lithium mine.

It is understood the $2 billion-odd deal includes IGO Ltd also nabbing a stake in the Tianqi Lithium Corporation's Kwinana lithium plant, which is the world's biggest and first fully automated lithium chemical manufacturing facility outside of China.

The plant, which opened last year, is said to be a significant attraction for IGO Ltd as it prepares its first foray into lithium.

The plant is another key part of IGO's bold play to get into lithium - and in a big way. Karl Hilzinger

IGO is seeking to buy about a 25 per cent stake in the Greenbushes mine, which is widely regarded as the No.1 lithium project in Australia because of its size and ore.
Both sides of the deal were seeking to have an agreement finalised by Wednesday morning, sources said, after Street Talk revealed the transaction on Monday.

The long-term goal is to have Greenbushes' spodumene processed at the Kwinana plant, which was designed to produce 24,000 tonnes of battery-grade lithium hydroxide for its first stage, and 48,000 tonnes once the second stage is completed.

However, ramp up was delayed earlier this year, while stage two has also been on hold, given the need to get stage one right and wider financial market and lithium market conditions.

The plant is another key part of IGO's bold play to get into lithium - and in a big way.
The group is expected to pitch the move as strategically in line with its objective to supply metals required for energy storage and renewable energy markets more broadly, and an opportunistic time to be making such an investment given market conditions.

IGO is expected to fund the deal with an $800 million-odd equity raising via Macquarie Capital and Citi, as well as new debt facilities.

Part of the pitch will also include its willingness to sell its 30 per cent stake in the Tropicana gold mine, also in WA. IGO is expected to argue it got into Tropicana early and was selling after a strong 10-year period for gold - and would seek to repeat that formula with Greenbushes and the lithium plant.