2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) Capital structure and financing activities This section of the notes provides further information about the Group's borrowings, contributed equity, reserves, retained earnings and dividends, including accounting policies relevant to understanding these items. 17 Borrowings 2021 $'000 2020 $'000 Current Unsecured Bank loans - 56,937 Total current borrowings - 56,937 (a) Corporate loan facility The Company's loan facilities under the previous syndicated facility agreement, which was entered into in July 2015, were cancelled during the current financial year following repyament of outstanding debt. On 23 December 2020, the Company entered into a new Syndicated Facility Agreement (Facility Agreement) for facilities totalling $1,100,000,000, which was originally established to fund the acquisition of the 49% of the Lithium joint venture with Tianqi Lithium Corporation (Transaction). Following the divestment of the Company’s interest in the Tropicana JV, the facility was not required as a source of funds for the Transaction. To maintain financial flexibility, the facility was amended prior to financial year end to consist of a $450,000,000 amortising revolving credit facility, expiring in June 2024. The facility's commitments will reduce (amortise) by $50,000,000 semi-annually commencing 31 December 2021, with the balance of $200,000,000 expiring in June 2024. As at 30 June 2021, draw down of the facilities is conditional upon the satisfaction of certain conditions, including the Company entering into a General Security Agreement (GSA) with the lenders of the Facility Agreement. Transaction costs are accounted for under the effective interest rate method. These costs are incremental costs that are directly attributable to the loan and include loan origination fees, commitment fees and legal fees. At 30 June 2021, there were no unamortised transaction costs (2020: $208,000 was offset against the bank loans contractual liability of $57,145,000). Total capitalised transaction costs to 30 June 2021 are $nil (2020: $5,495,000). The Facility Agreement has certain financial covenants that the Company has to comply with. All such financial covenants have been complied with in accordance with the Facility Agreement. (b) Assets pledged as security There were no assets pledged as security as at 30 June 2021. As stated above, a condition subsequent to the execution of the amended Facility Agreement is the entering into of a GSA with the lenders. The GSA provides that the Company and its subsidiaries pledge all present and after acquired property as security of drawn amounts from the $450,000,000 facility outlined above. Certain mining tenements owned by IGO Nova Pty Ltd are excluded from this GSA pending consents from third parties. There were no assets pledged as security at 30 June 2020. IGO Limited 34 Notes to The Consolidated Financial Statements 30 June 2021 104 — IGO ANNUAL REPORT 2021