Liontown Resources (ASX:LTR) is set to raise approximately $266 million through a placement to advance the ramp-up and underground transition of its Kathleen Valley Lithium Operation in Western Australia. The company will issue 364.4 million shares at $0.73 each in a fully underwritten placement, expecting a pro forma cash balance of around $422 million post-issuance. Allens is acting as legal advisor, while Greenhill, an affiliate of Mizuho, serves as the financial advisor.
The offer price reflects a 13.6% discount from the last closing price of $0.85 on August 6 and a 10.4% discount to the five-day volume weighted average price of $0.81 per share. The National Reconstruction Fund Corporation (NRFC) has committed $50 million as a cornerstone investor in this placement. Liontown Resources is dedicated to establishing a dependable supply of battery minerals through its two lithium deposits located in Western Australia.
Liontown CEO Tony Ottaviano stated that the NRFC’s investment aligns with the company’s strategy to strengthen Australia’s critical minerals sector and its role in the global transition to net zero. NRFC CEO David Gall added that their investment aims to attract private capital and develop the resources sector, underlining Australia’s potential as a long-term lithium supplier.
In addition to the placement, Liontown will offer eligible shareholders the opportunity to participate in a share purchase plan, seeking to raise an additional $20 million. Shareholders can bid for up to $30,000 in shares at the same offer price as the placement, providing further financial flexibility in a fluctuating lithium market, currently priced at ¥71,100 ($15,172) per tonne.
