Liontown Resources has successfully raised approximately $316 million under the $266 million fully underwritten institutional placement it announced on August 7.
The fully underwritten placement of approximately 364.4 million shares at $0.73 per share has successfully completed its bookbuild, paving the way to support the ramp-up and underground transition at the Kathleen Valley lithium mine in Western Australia.
The funds are also expected to fortify Liontown’s balance sheet, provide a prudent liquidity buffer during a period of lower lithium prices, and fund general corporate purposes and transaction costs.
“I’m very pleased with the strong support we’ve received for this placement, which attracted significant demand from high-quality institutional investors, both in Australia and offshore,” Liontown managing director and chief executive officer Tony Ottaviano said.
“Despite challenging market conditions, the backing from the equity markets, who have contributed 84 per cent of the money raised, alongside support from the National Reconstruction Fund Corporation, underscores the quality, long-term value, and strategic importance of Kathleen Valley to the Australian economy and national interest.”
Liontown has also exercised its right to accept oversubscriptions via a non-underwritten conditional placement of new shares to Canmax Technologies, a leading lithium raw materials consumer, and other institutional investors at $0.73 per cent per share to raise $50 million.
“The investment in Liontown by Canmax, a world leading producer of lithium chemicals, in the conditional placement reflects confidence in the long-term value of the Kathleen Valley operation, and we think is a strong positive indicator for the demand outlook of lithium products,” Ottaviano said.
Liontown’s existing eligible shareholders are also being invited to participate in a non-underwritten share purchase plan (SPP) to raise up to an additional $20 million.
The SPP will see all members of Liontown’s board of directors participate, with the funds to further strengthen Liontown’s balance sheet and maintain resilience amid the lithium downturn.
Like the fully underwritten placement, Liontown’s SPP will be conducted at $0.73 per share.
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