In its pursuit of a near $15 billion merger with US-based Livent, lithium takeover target Allkem (ASX:AKE) has made significant strides in securing project financing for its Sal de Vida initiative.
The company has gained access to a 10-year $US130 million loan from the World Bank-linked International Finance Corporation.
The Sal de Vida project, located in Argentina’s Catamarca Province, holds immense promise for Allkem.
To further bolster the project, the company is currently engaged in discussions with another lender to augment the project finance facility with an additional $US50 million, bringing the total financing package to $US180 million.
Allkem emphasized that this project financing has been thoughtfully structured as a green and sustainability-linked loan. The company’s Chief Executive, Martin Perez de Solay, expressed a strong commitment to the highest sustainability standards for the Sal de Vida project. He underscored the project’s potential to make positive contributions to the Catamarca economy through local employment opportunities, the development of local supply chains, and community development programs.
Allkem’s efforts in securing the necessary funds reflect its determination to move forward with the Sal de Vida project, further solidifying its position as a significant player in the lithium industry. As of Tuesday, Allkem’s shares were valued at $15.06, highlighting the market’s anticipation of the project’s potential impact.