Kidman Resources (KDR) has reached a settlement with the objectors to the applications for an exemption from minimum expenditure obligations on Mt Holland tenements. This means that the Covalent Lithium joint venture (KDR 50%, SQM 50%) is now unencumbered to progress development of the project. This settlement triggers the payment from SQM’s outstanding US$25m to KDR and a further US$60m towards KDR’s share of project development. The JV is currently progressing legally binding agreements for a US$100m capital expenditure facility. This, in addition to SQM’s outstanding JV payments and a US$110m debt facility provided by SQM to KDR, will fund the Company’s near-term working capital through to final investment decision (FID) and initial construction of the project. We upgrade from SPEC BUY to BUY recommendation.
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