Liontown Resources (ASX:LTR)
has announced a $52 million capital raise for development of its key Kathleen Valley Lithium-Tantalum Project. The funds will be raised via the placement of approximately 68 new shares at $0.76 per share with institutional and sophisticated investors. Settlement is expected to occur on 21 July 2001.
Liontown is a battery metals exploration and development company. Its 100 per cent-owned Kathleen Valley resource in Western Australia is one of the largest hard rock lithium deposits in the world, at 156 megatonnes. It is estimated to have a 40-year lifespan.
Liontown’s Managing Director and CEO, Tony Ottaviano, says: "This landmark capital raising will allow us to super-charge our growth strategy to become a battery raw materials supplier, further de-risk our development pathway and give us the flexibility to accelerate key development and construction aspects of the KV Project. The proceeds of this raising will also allow us to pursue commercial and operating strategies aimed at minimising the unit cost of production and maximising spodumene output, while in parallel progressing growth initiatives."
The proceeds of the placement are said to allow Liontown to bring its first tonnes to market in mid-2024, approximately one year ahead of the previously reported schedule.
Shares in Liontown Resources (ASX:LTR)
are trading 4.1 per cent lower at $0.81.