Liontown Resources has secured over $1 billion in equity and debt funding, enough for the company’s flagship lithium project to hit first production and beyond.
The company has launched a $365 million equity raise at $1.80 – a 35.5 per cent discount from Liontown’s last closing price of $2.79 on Friday October 13.
This will see 203 million new shares issued to institutional shareholders. Retail shareholders will have the opportunity to participate in a share purchase plan (SPP) looking to raise up to $45 million.
The equity raise includes an additional $10.8 million conditional placement to company chair Tim Goyder non-underwritten.
Liontown has also secured $760 million in a debt funding package with a syndicate of commercial lenders.
Proceeds from the debt and equity raise will be used towards construction and ramp up at Kathleen Valley, which is on track for production in mid-2024; and refinancing an existing $300 million debt facility with Ford, which involves the offtake of up to 150,000 tonnes per annum of spodumene concentrate across an initial five years.
“The execution of this credit approved term sheet and the launch of the equity raise are critical achievements in de-risking the development of the Kathleen Valley project. These initiatives ensure we are funded to first production and beyond,” Liontown chief executive officer and managing director Tony Ottaviano said.
“We remain confident in our ability to execute the plan for Kathleen Valley on schedule and on budget, and as part of our financing strategy we have ensured an appropriate financial buffer is in place to allow the company to successfully weather any unforeseen issues that may arise.”
The development comes day after Albemarle backed out of its $6.6 billion acquisition of Liontown Resources, citing complexities with the sale.
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