PERTH (miningweekly.com) – ASX-listed Liontown Resources will raise A$52-million to accelerate the development of its Kathleen Valley lithium/tantalum project, in Western Australia.
The company on Wednesday announced that it would issue some 68.42-million shares, at a price of 76c each to institutional and sophisticated investors under its existing placement capacity.
The offer price represents a 10.1% discount to Liontown’s last closing price on July 9, and a 6.6% premium to the company’s 30-day volume weighted average price.
The proceeds of the placement would increase Liontown’s cash and liquids position to some A$67-million, the company said on Wednesday, putting it in a strong position to execute elements of its growth and accelerated production strategy, with the aim of brining the Kathleen Valley project into production as quickly as possible.
The company is aiming to produce first tonnes from Kathleen Valley by mid-2024, one year ahead of the previously reported schedule.
In parallel with the definitive feasibility study currently being undertaken for Kathleen Valley, Liontown is also seeking to secure near-term offtake arrangements, advance project funding strategies, and place orders for long-lead items.
“The next 12 months will be a very exciting period for Liontown and the development of the Kathleen Valley project. This landmark capital raising will allow us to super-charge our growth strategy to become a battery raw materials supplier, further de-risk our development pathway and give us the flexibility to accelerate key development and construction aspects of the Kathleen Valley project,” said Liontown MD and CEO Tony Ottaviano.
“The proceeds of this raising will allow us to pursue commercial and operating strategies aimed at minimising the unit cost of production and maximizing spodumene output, while in parallel progressing growth initiatives.
“This includes accelerating work on our downstream processing strategy, which will position Liontown to participate in the value-added areas of the battery raw materials supply chain, and growing our mineral resource through accelerated exploration at the exciting Buldania project.”