Australia’s Liontown Resources said on Thursday it secured A$1.13 billion (USD 712.69 million) in funding for its flagship Kathleen Valley lithium project via a debt financing package and a fully underwritten equity raise.
Equity will be raised at a price of A$1.80 per share, a discount of 55% to last closing of A$2.79 on Oct 13, the company said in a statement.
Liontown entered a trading halt on Monday to raise funding for the project after U.S.-based miner Albemarle walked away from a A$6.6 billion buyout offer.
Albemarle withdrew its indicative proposal citing “growing complexities” after Hancock Prospecting, an iron ore miner controlled by Australia’s richest person, Gina Rinehart, raised its stake to 19.9% of Liontown.
Liontown’s capital raising will cover the remaining capital costs for Kathleen Valley, including early mine development and building of preproduction run-of-mine stockpiles, the miner said.
“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,” Managing Director and CEO, Tony Ottaviano said.
The Kathleen Valley project remained on track to commence production in mid-2024, Liontown added.
(USD 1 = 1.5850 Australian dollars)
