Liontown Resources has launched a fully underwritten placement to raise approximately A$266m ($173.2m) at an issue price of A$0.73 per share.
This capital-raising effort also includes a non-underwritten share purchase plan (SPP) to raise up to an additional A$20m.
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The move aims to strengthen the company’s balance sheet and provide a liquidity buffer during a period of lower prices.
The proceeds from this capital raising will support the ramp-up and underground transition of the Kathleen Valley Lithium operation, as well as fund general corporate purposes and transaction costs.
Liontown reserves the right to accept oversubscriptions through a non-underwritten conditional placement.
In a significant boost to the project, the National Reconstruction Fund Corporation (NRFC) has also committed A$50m to support the Kathleen Valley Lithium operation.
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By GlobalDataNRFC CEO David Gall said: “Lithium is a critical mineral that is central to both decarbonisation efforts and the government’s Future Made in Australia strategy.
“Australia is well-positioned to be a competitive, long-term supplier of lithium to the rest of the world and local lithium production is important to the nation’s economic security and resilience.
“Our investment in Liontown will help to attract private capital and develop Australia’s resources sector. It is aligned with the government’s strategy of transforming Australia into a global leader in the critical minerals supply chain.”
The operation, which commenced production of spodumene concentrate on 31 July 2024, is one of Australia’s largest and most advanced lithium projects, with a production capacity of 500,000 tonnes per annum and potential for future expansion.
As a key supplier of lithium to major global manufacturers such as Tesla, Ford and LG Energy Solution, Liontown is positioned to contribute significantly to Australia’s industrial capacity in the critical minerals supply chain.
Liontown has also awarded contracts to Tjiwarl community businesses, with the company’s approach to First Nations engagement serving as a model for the mining industry.
Liontown CEO Tony Ottaviano said: “We are pleased to welcome NRFC as a cornerstone investor in Liontown. Their investment is a strong endorsement of Kathleen Valley’s strategic importance and long-term value.”
The initiation of underground production at the Mt Mann orebody in April this year marked a pivotal transition for Kathleen Valley, setting the stage for the operation to become Australia’s first underground lithium mine by fiscal year 2026.
