Wyloo Metals Pty Ltd has announced it has entered into an agreement with IGO Limited to jointly evaluate opportunities for downstream nickel processing in Australia.
The agreement will see IGO and Wyloo Metals conduct a study, funded 70:30 by IGO and Wyloo Metals respectively, to evaluate the technical, commercial and economic feasibility of developing a downstream nickel processing facility based in Australia. Following the conclusion of the study, and subject to the parties making a final investment decision, the parties would then form a 70:30 joint venture of IGO and Wyloo Metals respectively to construct and operate a downstream nickel processing facility.
Separately, Wyloo Consolidated Investments Pty Ltd, a wholly owned subsidiary of Wyloo Metals, has undertaken to IGO to vote its 31,509,769 shares (representing a 9.8% interest) in Western Areas Limited (“Western Areas”) in support of the Western Areas board recommended scheme of arrangement between IGO and Western Areas (the “Scheme”), subject to there being no superior proposal for Western Areas that is unmatched by IGO and the independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of Western Areas shareholders. Subject to the same conditions, Wyloo Metals has also committed to a standstill such that it will not acquire or dispose of any Western Areas shares other than pursuant to the implementation of the Scheme.
This partnership is aligned with Wyloo Metals’ global strategy of investing in the production of materials required to support the rapid decarbonisation of the global economy”, says Luca Giacovazzi, Ceo of Wyloo Metals.