12/07/2021 - 15:50

Liontown raising $50m for Kathleen Valley

12/07/2021 - 15:50

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Lithium company Liontown Resources is undertaking a $50 million capital raising, with the funds expected to help accelerate the progression of its Kathleen Valley project.

The company hopes the funds will help accelerate the progression of its Kathleen Valley lithium project.

Lithium company Liontown Resources is undertaking a $50 million capital raising, with the funds expected to help accelerate the progression of its Kathleen Valley project.

According to a deal sheet, seen by Business News, Liontown intends to raise the funds via a share placement at $0.76 per share, which represents a 10.1 per cent discount on its closing price.

The exploration and development company has been working to progress the development of its Kathleen Valley Lithium Project, the country’s fifth largest hard-rock lithium resource, and expand the resource potential of its Buldania lithium project.

The placement, which is being managed by Bell Potter Securities, is expected to facilitate the completion of various feasibility studies at the Kathleen Valley site and fund the commencement of early works.

The company hopes the capital raising will also help it to bring first tonnes to market 12 months ahead of schedule, which would coincide with a forecast lithium deficit in 2023.

The capital raising comes following a successful few months for the lithium explorer, with its share price having almost doubled in the past two months.

In February, the company recruited BHP executive Tony Ottaviano to lead its transition from lithium explorer to developer and spearhead exploration efforts outside of its Kathleen Valley project.

The company's other assets include the Jubilee Reef gold project and the Mega joint venture project located in northern Tanzania and the Mount Windsor and Panhandle joint venture projects in northern Queensland.

Shares in Liontown Resources closed at $0.845 on Friday before it called a trading halt.

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