Liontown Resources Completes Funding Plan for Kathleen Valley Project

Tajha Pritchard

Liontown Resources has successfully concluded the share purchase plan (SPP) introduced on October 19, aiming to fully finance the Kathleen Valley lithium project in Western Australia.

The SPP offered shares at a price of $1.47 each, representing a two percent discount compared to the five-day volume-weighted average price of Liontown shares leading up to and including the SPP closing date of November 20, rounded to the nearest cent.

Designed to raise up to an additional $45 million at a price matching the lower end of the placement offer price, the SPP saw the issuance of over nine million new Liontown shares on November 27. These newly issued shares are anticipated to be listed on the Australian Securities Exchange (ASX) on November 28.

Subscriptions from eligible shareholders in the SPP totaled $13.8 million. Liontown's Managing Director and Chief Executive Officer, Tony Ottaviano, expressed gratitude, stating, "On behalf of the board, we are pleased to have provided eligible shareholders the opportunity to participate in the SPP following the institutional placement, and I would like to thank shareholders for the ongoing support they have shown the company."

Ottaviano further emphasized that the funds raised through the SPP complement the proceeds from the $365 million institutional placement completed in October. This funding package ensures the financial requirements for the Kathleen Valley project from its current stage through to initial production and beyond.

The successful conclusion of the SPP follows recent developments at Kathleen Valley, including Sandvik's announcement to supply automated loaders, underground drills, and rock tools. Additionally, crucial components for the project's key wind turbines have arrived at Kathleen Valley, and underground mining has commenced with the initiation of the first blast to create underground portals at the Mount Mann pit.

For the latest updates on product announcements, industry developments, commodities, and more, readers are encouraged to subscribe to Australian Mining.