Gilbert + Tobin has advised IGO Limited (ASX: IGO) on its binding agreement with Global Lithium Resources Limited (ASX: GL1) for the proposed divestment of the Nova Nickel Operation in Western Australia.
Under the agreement, a wholly owned subsidiary of Global Lithium will acquire 100% of the shares in IGO Nova Pty Ltd, the owner of Nova. Total consideration is $7 million, comprising $3 million in cash on completion, $2 million in GL1 shares and $2 million in deferred cash payable 12 months after completion.
Nova is expected to continue operating and generating positive cash flow for IGO until mining operations conclude as planned during the December 2026 quarter. Completion of the transaction is expected after that and remains subject to ACCC approval or waiver.
On completion, the Nova infrastructure, together with the associated rehabilitation obligations, will transfer to Global Lithium. Global Lithium intends to repurpose Nova’s processing plant and infrastructure to process pegmatite ore from its 100%-owned Manna Lithium Project, located approximately 170 kilometres by road from Nova.
For IGO, the transaction supports responsible stewardship for Nova’s infrastructure following the planned end of mining and provides a pathway for development of a critical minerals project in Western Australia and continued economic activity in the region.
The G+T team was led by Callum Fleming, Corporate Advisory Special Counsel and Shay Kiriakidis, Energy, Resources and Infrastructure Senior Associate.
Callum Fleming commented:
We are pleased to have supported IGO on this important transaction. The proposed sale follows IGO’s planned conclusion of mining at Nova and supports IGO’s continued portfolio optimisation.
“The transaction combines a mixed cash and scrip consideration structure, the transfer of significant processing infrastructure and rehabilitation obligations, and a completion timetable aligned with the planned conclusion of mining operations (at which time, Nova will no longer be core to IGO). It was a pleasure to work with the IGO team to bring the transaction to signing.
The transaction reflects G+T’s experience advising on complex resources transactions involving operational assets, infrastructure transfer and rehabilitation obligations.
