Australian resources firm inks US$60m partnership with Ashurst’s help

The law firm continues its work for the ASX-listed miner with a cross-border deal

Australian resources firm inks US$60m partnership with Ashurst’s help

Ashurst has continued its work for Iluka Resources Limited, helping the ASX-listed company with a cross-border deal.

The global giant advised Iluka on the sale of a 10% stake of its Sierra Rutile Project in Sierra Leone to the International Finance Corporation (IFC) for US$60m. All proceeds of the two-tranche deal will be used to develop the rutile operations, Ashurst said.

Ashurst advised Iluka in 2016 on the $375m acquisition of Sierra Rutile Limited. 

The top firm said that the first tranche is worth US$20m for a 3.75% stake. The second tranche is a US$40m investment contingent on Iluka advancing its Sembehun project, whose deposits account for more than 70% of the Sierra Rutile project ore reserves.

Lorenzo Pacitti, who led the Ashurst deal team, said that the firm is delighted to work with Iluka on the partnership with IFC, which is a division of the World Bank.

“The transaction demonstrates the truly global scale of Iluka Resources’ asset portfolio and its commitment to developing its Sierra Rutile Project, providing mutual benefits to Iluka Resources and IFC, and to the country of Sierra Leone and the stimulation of private investment in the region,” said Pacitti, Ashurst partner and global co-head of mining.

Pacitti was supported by 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.