Liontown Resources halts trading amid funding rumours

Company News

by Glenn Dyer

Troubled lithium wannabe Liontown Resources (ASX:LTR) had trading in its shares halted Tuesday as rumours spread that it’s facing further funding pressures for its almost finished Kathleen Valley Lithium Project in Western Australia.

"The trading halt is requested pending an announcement by the Company in connection with funding arrangements. Liontown considers that the trading halt is necessary to ensure the Company can manage its continuous disclosure obligations,” the company told the ASX.

Now there are rumours that the company is about to announce a major offtake and funding agreement to get the Kathleen Valley project completed. In March, the company said it had put in place a $550 million debt facility with a syndicate of lenders, including Commonwealth Bank, National Australia Bank, Société Générale, and the Clean Energy Finance Corporation, to get the mine underway.

That was reduced from an earlier arrangement totalling $760 million in late 2023, which was scrapped in January of this year.

Liontown said in March that the $550 million arrangement had been "executed." Now it doesn’t seem that’s the case.

The shares have been halted until either Liontown makes the announcement on funding or the start of ASX trading on Thursday, July 4.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?