Liontown Resources (ASX:LTR), a responsible battery minerals provider focused on ensuring a reliable supply of essential minerals, has announced the successful completion of a A$266 million institutional placement. The placement involved approximately 364.4 million new fully paid ordinary shares priced at A$0.73 per share to new and existing investors. The company currently controls two major lithium deposits in Western Australia and aims to expand its portfolio through exploration, partnerships and acquisitions.
In addition to the institutional placement, Liontown has accepted oversubscriptions via a conditional placement of new shares to Canmax Technologies Co., Ltd., and other institutional investors, to raise a further A$50 million. The shares are priced at $0.73 each. Canmax is a leading producer of lithium chemicals and a significant consumer of lithium raw materials. The conditional placement is subject to shareholder approval and Canmax’s participation is also subject to overseas direct investment approval by Chinese regulatory authorities.
Liontown is also undertaking a non-underwritten Share Purchase Plan (SPP) for up to A$20 million. Managing Director and CEO Tony Ottaviano expressed satisfaction with the strong support received for the placement, highlighting the backing from both domestic and offshore institutions, including the National Reconstruction Fund Corporation (NRFC), which invested A$50 million in the institutional placement. All members of Liontown’s Board of Directors intend to participate in the SPP.
The capital raising aims to fortify Liontown’s balance sheet and ensure resilience across various lithium price environments. Subject to completion of the conditional placement, Liontown anticipates a pro forma cash balance of approximately A$472 million. The funds raised will support the ramp-up and transition to 100% underground operations at Kathleen Valley, positioning the company to capitalise on a potential recovery in lithium prices. The SPP offer booklet is expected to be released around 14 August 2025.
