Liontown fortifies balance sheet with A$316m placement
Australian lithium miner Liontown has successfully completed a bookbuild for a fully underwritten A$266-million institutional placement and has accepted oversubscriptions by way of a non-underwritten conditional placement to lithium chemicals producer Canmax Technologies, alongside other institutional investors to raise a A$50-million.
The institutional placement, which comprises 364.4-million shares at A$0.73 apiece, has received strong domestic and offshore support, including a A$50-million investment from the National Reconstruction Fund Corporation.
“Despite challenging market conditions, the backing from the equity markets, who have contributed 84% 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,” commented MD and CEO Tony Ottaviano.
He added that the investment in Liontown by Canmax in the conditional placement reflected the long-term value of Kathleen Valley. “We think [the Canmax investment] is a positive indicator for the demand outlook of lithium products.”
Ottaviano stated that the capital raise would support its ramp-up and transition to 100% underground operations, and would ensure that Liontown remained well positioned to capitalise on a recovery in lithium prices.
The company is also undertaking a nonunderwritten share purchase plan for a further A$20-million.
Kathleen Valley started production of spodumene concentrate at the end of July last year, and is one of Australia’s largest and most advanced lithium projects. With a multi-decade mine life, Kathleen Valley will produce 500 000 t/y of spodumene concentrate, with future expansion potential.
Liontown is a key supplier of lithium to some of the world's leading vehicle and battery manufacturers, including Tesla, Ford, and LG Energy Solution.
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