Ahead of Albemarle’s $6.6 billion takeover of Liontown Resources, Gina Rinehart’s Hancock Prospecting has increased its strategic stake in Liontown to 16.7 per cent.
The increase is the third jump in shareholdings for Hancock in recent weeks. The first was in early September, which saw Hancock snap up 7.72 per cent of Liontown’s ordinary shares.
Two weeks later, Hancock increased the stake to 10.7 per cent, and a week after that it boosted its stake to 12.4 per cent.
By now owning 16.7 per cent of Liontown’s ordinary shares, Hancock has become the lithium miner’s largest shareholder.
“Hancock welcomes the opportunity to participate in the Kathleen Valley project as a shareholder, and have an influence on the company’s overall future direction – including where decisions are to be made by shareholders,” the company said.
The iron ore magnate said it doesn’t intend to put forward any director nominations at Liontown’s upcoming annual general meeting, but it remains open to nominating directors to Liontown’s board in the future if its strategic stake continues to increase towards 19.9 per cent.
Hancock becoming Liontown’s largest stakeholder arrives as Liontown provided an update regarding the Kathleen Valley lithium project last week.
In its update, Liontown said it estimates that Kathleen Valley’s capital cost to first production will be $951 million and that it will continue to assist Albemarle with due diligence and to work through its funding options.
Albemarle was due to complete the four weeks of due diligence last Friday. The major lithium producer is expected to clarify whether it will progress with its preliminary proposal to pay $3 for each Liontown share in the upcoming days.