Allens advised Liontown Resources on the matter.
A $545 million lithium mine in Western Australia has been approved for development after its owners, Liontown Resources, signed a deal with US giant Ford Motor Company, the Australian miner’s latest after similar deals earlier this year with Tesla and electric vehicle battery maker LG Energy to supply the battery metal and back the project with a massive loan.
The deal between Perth-based Liontown and Michigan-headquartered Ford is for the annual supply of up to 150,000 dry metric tonnes of spodumene concentrate for five years, starting from 2024.
As part of the deal, Ford will provide Liontown with a $300 million loan to fund the project’s development.
The green light for the Kathleen Valley mine, 60km north of Leinster in WA’s Goldfields, follows last year’s approval for the $1.9 billion Mt Holland lithium mine near Southern Cross and a refinery at Kwinana.
Liontown Resources Ltd (LTR.AX) is a mineral exploration and development company focused on the development of high quality lithium & tantalum projects in Australia, as well as an emerging gold, PGE, nickel and copper project in Western Australia.
Ford Motor Company (NYSE:F) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States.
Tesla (TSLA.O) is an American automotive and clean energy company focused on designing and manufacturing electric vehicles (electric cars and trucks), battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services.
LG Energy (373220.KS) is an electric vehicle battery maker.
The Allens’ team was led by Partner Mark McAleer (Picture) and included Richard Malcolmson (Partner), Emma Morris (Associate), Henry Simpson (Associate) (Offtake); Nicholas Creed (Partner), Rod Aldus (Managing Associate), Alastair Henderson (Associate) (Financing); Bryn Hardcastle (Partner) and Alex Ninkov (Senior Associate) (Corporate).
Involved fees earner: Rod Aldus – Allens; Nicholas Creed – Allens; Bryn Hardcastle – Allens; Alastair Henderson – Allens; Richard Malcolmson – Allens; Mark McAleer – Allens; Emma Morris – Allens; Alex Ninkov – Allens; Henry Simpson – Allens;
Law Firms: Allens;
Clients: Liontown Resources;