LibertyStream Infrastructure Partners has signed a non-binding term sheet with Endurance Finance Partners for a proposed financing framework of up to $95 million.
The framework would include construction financing for LibertyStream’s Freedom 1 and Freedom 2 projects, along with potential financing for additional sites.
The initial proposed facility would consist of a $45 million delayed-draw senior secured construction credit facility for Freedom 1 and Freedom 2.
The financing would be drawn against independently certified construction milestones, carry an interest rate of 12.25% annually and mature five years after execution of definitive agreements.
The proposed structure also includes fees, minimum-return protections and LibertyStream warrants equal to up to 10% in respect of the initial $45 million credit facility.
Those warrants would have a seven-year exercise period, with final terms to be established in definitive agreements.
Endurance would also have the opportunity to provide financing for future LibertyStream sites, bringing the potential total framework to $95 million, with each additional site evaluated separately.
Funding remains subject to due diligence, investment and credit approvals, definitive documentation, project agreements, LibertyStream completing an agreed investment commitment and required regulatory and corporate approvals.
The parties plan to use commercially reasonable efforts to enter definitive agreements within approximately 45 days, although LibertyStream noted there is no assurance that the facilities will ultimately close.
LibertyStream is developing technology to produce lithium carbonate from oilfield brines by integrating its direct lithium extraction technology with existing oil and gas infrastructure.
