Liontown opens up data room

Liontown Resources and Albemarle have struck a non-disclosure and exclusivity agreement allowing the US lithium giant to proceed with due diligence. 

It comes exactly a week after Kathleen Valley developer Liontown Resources revealed intentions to accept a $3.00 per share cash takeover from Albemarle, in a transaction that would be worth about $6.6 billion should it go ahead. 

Liontown’s board at the time said its intention was to unanimously recommend the takeover in the absence of a superior proposal.

Albemarle has also said its offer is best and final, having previously put three proposals forward. 

The pair told the market this morning that they had reached terms for a non-disclosure and exclusivity agreement that allows Albemarle to complete due dilligence on its target. 

Albemarle's assessment is expected to take about four weeks to complete and start shortly, according to Liontown. 

Part of the agreement stipulates that Liontown won't be able to solicit or encourage any other competing proposals.

However, Liontown is permitted to grant due dilligence if an unsolicited offer is made by a third party, provided the board determines it to be in good faith. 

Liontown chairman and veteran prospector Tim Goyder owns about 15 per cent of the company in a stake that’s worth about $990 million, based on Albemarle’s pricing. 

Albemarle owns about 4 per cent of Liontown and there's talk that mining billionaire Gina Rinehart has a presence on the target's register. 

Liontown shares were down 1.15 per cent at 1:44pm AEST to trade at $3.02.