Liontown Resources (ASX:LTR), a responsible battery minerals provider focused on ensuring a reliable supply of essential minerals with world-class assets and strategic partnerships, has announced a fully underwritten institutional placement to raise approximately A$266 million. The offer price is set at A$0.73 per share. In addition, the company will offer existing eligible shareholders the opportunity to participate in a non-underwritten Share Purchase Plan (SPP) to raise up to A$20 million at the same price.
The capital raising aims to fortify Liontown’s balance sheet and provide a liquidity buffer amid fluctuating lithium prices. Proceeds will also support the ramp-up and underground transition of the Kathleen Valley Lithium Operation. The National Reconstruction Fund Corporation (NRFC) will invest A$50 million in Liontown as part of the placement, highlighting the strategic importance of Kathleen Valley to the Australian economy.
The placement involves the issue of approximately 364.4 million new shares. Liontown Managing Director and CEO, Tony Ottaviano, stated that the capital raising positions the company to remain resilient in a low-price environment while retaining the flexibility to pursue growth opportunities. The company retains optionality over growth options, including the potential expansion of Kathleen Valley to 4Mtpa, which remains subject to improving market conditions.
The SPP will allow eligible shareholders to bid for up to A$30,000 of additional Liontown shares without incurring brokerage costs. The SPP offer booklet, containing further details, is expected to be released on or around 14 August 2025. The new shares issued under both the placement and SPP will rank equally with existing fully paid ordinary shares from their respective dates of issue.
