Drilling operations at Kathleen Valley. Source: Liontown Resources
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  • Liontown Resources (LTR) successfully completes its institutional placement and raises $450 million
  • The funds were raised through the issue of approximately 272.2 million new fully-paid ordinary shares to new and existing investors at $1.65 each
  • Liontown will now be undertaking a share purchase plan to raise up to a further $40 million, with eligible shareholders able to subscribe for up to $30,000 worth of shares
  • The money will be used to accelerate the development of LTR’s Kathleen Valley lithium project with the funds specifically going towards mine establishment
  • Shares in Liontown are down 13.3 per cent on the market and are trading at $1.67 each

Liontown Resources (LTR) has successfully completed its institutional placement to raise $450 million.

Yesterday, the company announced it would be undertaking a $490 million capital raising consisting of a placement and share purchase plan.

The funds were raised through the issue of approximately 272.2 million new fully-paid ordinary shares to new and existing investors at $1.65 each.

This price represents a 14.1 per cent discount to the closing price of $1.92 per share on November 30, and a 9.3 per cent discount to the 10-day volume-weighted average price of $1.82.

Shares are expected to settle on December 6 and be allocated on December 7.

Barrenjoey Markets, Bell Potter Securities and Macquarie Capital acted as joint lead managers and underwriters.

Liontown will now be undertaking a share purchase plan (SPP) to raise up to a further $40 million.

Eligible shareholders will be able to apply for up to $30,000 worth of shares, which will be priced the same as the placement of $1.65 per share.

The company has the right to accept oversubscriptions or scale back applications at its discretion.

The SPP will open on December 10 and close on January 14 with shares to be allocated on January 21 and begin trading on the ASX on January 24.

Further information regarding the plan will be made available to shareholders on December 10.

Liontown will use the money from both the placement and SPP to accelerate the development of its Kathleen Valley lithium project in Western Australia.

Specifically, the money will be used to order critical long-lead items, undertake mine establishment and sustain capital investment for the first year of operations.

CEO and Managing Director Tony Ottaviano is pleased with the support received.

“The strong demand from both domestic and offshore institutions for this landmark equity raising is testament to the world-class nature of the Kathleen Valley Project and represents a strong endorsement of our development pathway,” Mr Ottaviano said.

“The introduction of these high-quality institutions together with the support shown by current shareholders has ensured that we emerge well capitalised with certainty of funding for the stage one capital cost of the initial 2.5 million tonne per annum development of Kathleen Valley.”

Shares in Liontown were down 13.3 per cent on the market this morning and were trading at $1.67 at 10:44 am AEDT.

LTR by the numbers
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