Liontown resources has announced the action of a share purchase plan (SPP) on October 30 in an attempt to raise $45 million.
Eligible shareholders in Australia and New Zealand have the opportunity to acquire up to $30,000 worth of Liontown ordinary shares without paying any brokerage, commission or other transaction costs.
Eligible shareholders participating in the SPP will be able to purchase new shares at an issue price per share equal to the lower of $1.80 or a two per cent discount to the volume weighted average price of Liontown shares traded during the five ASX trading days up to, and including, the closing date.
Funds raised under the SPP will be used towards:
- refinancing the Ford facility plus capitalised interest
- the remaining capital costs for Kathleen Valley, including early mine development for acceleration
- costs associated with building the pre-production run of mine stockpiles
- corporate costs and working capital (including capitalised interest and fees)
- providing prudent liquidity through to first production and beyond.
To participate in the SPP, shareholders may apply to acquire $2500, $5000, $10,000, $15,000, $20,000, $25,000 or $30,000 worth of new shares.
The SPP follows the recent withdrawal of Albemarle’s $6.6 billion takeover bid to acquire Liontown after Gina Rinehart’s Hancock Prospecting steadily increased its shareholdings to 19.9 per cent during Albemarle’s due diligence period.
The move has raised speculation that Hancock will make a bid for Liontown, but an offer has yet to materialise.
The SPP offer is expected to close at 5:00pm on November 20 2023.
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