Sibanye-Stillwater increases its effective shareholding in Keliber to 84.96%

Johannesburg – Sibanye-Stillwater confirms that it has increased its shareholding in Keliber Lithium project to an effective 84.96% through a series of transactions. On 29 July 2022, Sibanye-Stillwater exercised its pre-emptive right to increase its stake in Keliber from 30.29% to 50% plus 1 share for a cash consideration of approximately €146 million. Registration by the Finnish Trade Register of the new shares issued in terms of the Pre-emptive Offer is anticipated shortly at which stage this increase in Sibanye-Stillwater’s stake in Keliber will be formally completed.

The Company also made a voluntary cash offer to minority shareholders of Keliber, other than the Finnish Minerals Group, which has resulted in Sibanye-Stillwater’s shareholding increasing to an effective 84.96% for a further cash consideration of approximately €189.8 million excluding Finnish transfer tax of €2.3 million. The Finnish Minerals Group currently holds an effective 13.90% of Keliber and other remaining minority shareholders an effective 1.14% of Keliber.

With the voluntary offer now concluded, a capital raise by Keliber will be executed to achieve Keliber’s desired debt to equity ratio. The maximum total investment in the Capital Raise by Sibanye-Stillwater is around €104 million depending on the extent to which minorities and the Finnish Minerals Group participate.

Conventional debt facilities are currently under discussion with third party lenders to at least match the €250 million equity contribution to fully fund construction of the project.

Neal Froneman, CEO of Sibanye-Stillwater, commenting on the Keliber developments said, “We are delighted to have secured a majority stake in Keliber. We look forward to partnering with our Finnish stakeholders in the project to advance its permitting and development enabling delivery of high quality, low-cost lithium hydroxide with a low carbon footprint into the growing European battery industry.”