Liontown Resources has entered into a $550 million debt facility agreement to fund the development of its Kathleen Valley lithium project in Western Australia.
The agreement has been designed to ensure Kathleen Valley is funded through first production and ramp-up to the planned three-million-tonnes-per-annum (Mtpa) base case.
It will also provide Liontown with financial certainty and time to complete its previously announced review of Kathleen Valley’s ensuing 4Mtpa expansion.
“Liontown is very pleased to announce the debt funding facility today and I would like to acknowledge our lending syndicate for their support which once again reinforces the world class qualities of the Kathleen Valley project,” Liontown Resources managing director and chief executive officer Tony Ottaviano said.
“Having this funding in place provides strong endorsement for our project and a platform of financial certainty from which to move forward. We are consequently well-positioned to deliver the remaining milestones to first production mid-year and ramp-up towards anticipated positive cashflows.”
Liontown said it will continue to explore options for a longer-term funding solution to provide future flexibility and optionality beyond the 3Mtpa base case.
The company commenced underground mining at Kathleen Valley in the December quarter of 2023, a significant milestone considering the recent drop in lithium prices.
The Kathleen Valley project remains on schedule and budget to commence first production in the middle of 2024.
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