Ashurst has advised Iluka Resources Limited in relation to the International Finance Corporation (IFC) taking a 10% stake in its Sierra Leone rutile operations for US$60 million.
The investment will be conducted in two tranches, with all funds invested being used by Sierra Rutile to develop its Sierra Leone rutile operations. The first tranche will involve IFC initially investing US$20 million for a 3.57% stake. The second tranche will involve IFC further investing US$40 million to increase its stake to 10%, and will occur if or when Iluka progresses the Sembehun project, whose deposits comprise more than 70% of Sierra Rutile’s remaining ore reserves. Its development has the potential to extend the life of Sierra Rutile’s operations significantly.
Sierra Rutile, a wholly owned subsidiary of Iluka Resources, is a multi-mine operation located in the Bonthe and Moyamba districts, south west Sierra Leone. The operation is the world’s largest natural rutile deposit.
Iluka Resources is an international mineral sands company with expertise in exploration, development, mining, processing, marketing and rehabilitation. Iluka is headquartered in Perth, Western Australia.
The Ashurst team was led by Lorenzo Pacitti (Picture), with support from partners Gaelan Cooney, Roger Davies and Matthew Wood; counsel Marina Tinning; senior associates Richard Shi and Rowan Krasnoff; and associates Toby Newnes and Meng-Yeow Lim.
Involved fees earner: Gaelan Cooney – Ashurst; Roger Davies – Ashurst; Rowan Krasnoff – Ashurst; Meng-Yeow Lim – Ashurst; Toby Newnes – Ashurst; Lorenzo Pacitti – Ashurst; Richard Shi – Ashurst; Marina Tinning – Ashurst; Matthew Wood – Ashurst;
Law Firms: Ashurst;
Clients: Iluka Resources Limited;