Mineral Sands company Iluka Resources (ASX:ILU) and International Finance Corporation have signed agreements for a strategic partnership in relation to Iluka’s Sierra Rutile operation.
IFC will subscribe to new shares equivalent to a 10 per cent stake in Sierra Rutile for US$60 million.
They will initially invest US$20 million for a 3.57 per cent stake, with a further investment of US$40 million to increase its stake to 10 per cent to occur if or when Iluka approves the construction for the Sembehun project.
Iluka’s Managing Director, Tom O’Leary said, “This partnership provides mutual benefit to Sierra Rutile, Iluka, IFC and the people of Sierra Leone by promoting the continued, sustainable development of the Sierra Rutile operation.”
Shares in Iluka Resources (ASX:ILU) closed 0.85 per cent higher at $9.47 yesterday.