Pilbara Minerals Limited (ASX: PLS) (Pilbara Minerals or the Company) is pleased to announce that it has reached agreement with its existing lenders to increase its senior debt facilities to support the planned expansion in production from its Pilgangoora Project in Western Australia.
HIGHLIGHTS
Formal agreements executed with existing senior secured financiers to expand the existing Finance Facility by US$20M to US$130M, and the undrawn Working Capital Facility by US$10M to US$25M.
Total senior secured debt facilities increased by US$30Mto US$155M.
Additional funds will primarily be used to fund the staged restart of the Ngungaju Plant (including reimbursement of amounts already spent by the Company).
Maturity date of the undrawn Working Capital Facility has been extended to November 2023.
Debt Facilities remain on substantially the same favourable terms and conditions to those executed in September 2020, with the Ngungaju assets now included in the security package.
All conditions precedent for draw-down under these additional facilities are expected to be satisfied within the next two weeks.
The existing syndicated lenders, comprising BNP Paribas, the Clean Energy Finance Corporation (CEFC), Societe Generale and the Industrial and Commercial Bank of China (ICBC) (collectively, the Existing Financiers), have agreed to increase the total debt facility limits by US$30M to US$155M. This increase in the debt facilities comprises an increase of US$20M in the senior secured term loan facility (Finance Facility) from US$110M to US$130M, together with a US$10M increase in the undrawn Working Capital Facility with BNP Paribas to US$25M.
The proceeds from the additional Finance Facility will primarily be used to fund the previously announced staged restart of the Ngungaju Plant (including reimbursement of amounts already spent by the Company). The US$25M Working Capital Facility is immediately available, but currently remains undrawn. Wet commissioning at the Ngungaju Plant (and first ore produced from the coarse production circuit) commenced on 7 October 2021, representing the first step of a staged recommissioning of the Ngungaju Operation.
First concentrate production from the Ngungaju Processing Plant was delivered on 13 October 2021 (refer ASX Announcement dated 13 October 2021). The fines spodumene processing circuit is expected to commence production during the March Quarter 2022.
Commenting on the additional facilities, Pilbara Minerals' Managing Director, Ken Brinsden, said: 'We are pleased to have expanded our existing facilities with our supportive lending group with the increase of US$30M sufficient to underpin the restart of the Ngungaju Plant in a cost-effective manner. The increased facility limit is another demonstration of the strength of our business, the quality of our asset, and follows an extraordinary year of growth and transformation for Pilbara Minerals.' The additional facilities were arranged by BNP Paribas as Mandated Lead Arranger and Bookrunner. Pilbara Minerals' financial adviser was BurnVoir Corporate Finance. Allen & Overy acted as its legal advisers.
Contact:
David Hann
Tel: +61 (0)8 6266 6266
ABOUT PILBARA MINERALS
Pilbara Minerals is the leading ASX-listed pure-play lithium company, owning 100% of the world's largest, independent hard-rock lithium operation. Located in Western Australia's resource-rich Pilbara region, the Pilgangoora Project produces a spodumene and tantalite concentrate. The significant scale and quality of the operation has attracted a consortium of high quality, global partners including Ganfeng Lithium, General Lithium, Great Wall Motor Company, POSCO, CATL and Yibin Tianyi. While it continues to deliver a low-cost, quality spodumene to market, Pilbara Minerals is pursuing a growth and diversification strategy to become a sustainable, low-cost lithium producer and fully integrated lithium raw materials and chemicals supplier in the years to come. Through execution of this strategy, Pilbara Minerals is positioned to become a major player in the rapidly growing lithium supply chain, underpinned by increasing demand for clean energy technologies such as electric vehicles and energy storage as the world pursues a sustainable energy future
PILBARA MINERALS LIMITED 
