- Liontown Resources has issued an $18 million placement at $0.12 per share to professional and institutional investors
- Funds will be used to support the exploration and development of its lithium projects
- Liontown has significantly increased the Mineral Resource Estimate at Kathleen since operations began
Liontown Resources has received firm commitments for an $18 million capital raise to support the exploration and development of its Kathleen Valley Lithium-Tantalum Project.
The company considers the capital raise to be an important milestone because once it’s completed, Kathleen Valley will be fully-funded through to completion of a definitive feasibility study in 2020.
“The majority of the funds raised will be allocated towards ongoing work at Kathleen Valley, including a new program to expand the deposit and studies to deliver the pre-feasibility study in Q4 this year,” Managing Director David Richards stated.
“Importantly, this raising will allow us to move straight into a definitive feasibility study, which we are targeting to complete by Q3 next year.”
The capital raise was well supported by institutional and professional investors and shares were issued at $0.12 per share. This price represents a 14.3 per cent discount to the last closing price of $0.14 on Tuesday July 30.
The capital raise was issued in two Phases with Phase I issuing 138,083,333 shares to raise $16.57 million.
Phase II issued 11,916,667 shares to raise $1.43 million however, this is subject to shareholder approval at a general meeting that will happen shortly.
Kathleen Valley is a high-grade lithium deposit located approximately 690 kilometres north-east of Perth.
Since operations began Liontown has substantially increased the Mineral Resource Estimate which is an important step towards its objective of developing a high-quality, long-life, lithium-tantalum mining operation in Western Australia.
The new estimate comprises of 74.9Mt @ 1.3 per cent lithium oxide and 140ppm tantalum pentoxide.
This estimate is a 535 per cent increase compared to the maiden mineral resource announced in September 2018.
This capital raise was completed by joint lead Bridge Street Capital Partners, Taylor Collision Securities and Bell Potter Securities Limited.
Liontown shares are slightly down 3.57 per cent trading for 13.5 cents with a market cap of $215.5 million.