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Iluka Resources partners with rare earths company
Global law firm King & Wood Mallesons has advised Iluka Resources on its partnership with a rare earths company.
Emma Musgrave
Firm: King & Wood Mallesons (Iluka Resources)
The partnership includes a life-of-mine supply agreement for the supply of rare earths concentrate to Iluka from Northern’s Browns Range Project and a strategic investment by Iluka in Northern by way of an initial placement and convertible note, with the possibility for additional investment by Iluka under a further placement and reciprocal put and call options (subject to the satisfaction of certain conditions), a statement from King & Wood Mallesons explained.
Value: Undisclosed
Area: Resources, corporate, finance
Key players: The King & Wood Mallesons team was led by partner Lorenzo Pacitti, with support from partners Antonella Pacitti and Nathan Collins, senior associates Christopher Barry, Toby Newnes, Peixin Truong and solicitor Olivia Harle.
Deal significance: As per a statement provided by King & Wood Mallesons, the proposed transactions represent an important milestone for Iluka’s rare earths business, as:
“Subject to Northern developing its Browns Range Project, Northern’s concentrate will be a valuable additional source of feedstock for Iluka’s Eneabba rare earths refinery in Western Australia and will be a significant contributor to establishing the Eneabba refinery as a long-term producer of highly valued heavy, as well as light, permanent magnet REOs.
“The subscriptions provide Iluka with a pathway to achieve up to a 19.9 per cent shareholding in Northern (subject to the satisfaction of certain conditions).
“The proposed transactions build on KWM’s existing role in advising Iluka on the approvals required from the state of Western Australia under Iluka’s state agreement for the development for the Eneabba refinery.”
Commenting further on the deal, King & Wood Mallesons’ Antonella Pacitti said: “We are delighted to have partnered with Iluka and Gresham on this milestone transaction, and to have been able to deliver cross-practice support across the resources, corporate and finance elements of this deal.
“We look forward to assisting Iluka to establish Eneabba as a strategic hub for the downstream processing of Australia’s rare earth resources, including through the delivery of Australia’s first fully integrated rare earths refinery.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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