By Stuart Condie
SYDNEY–Liontown Resources completed an equity raise of 365 million Australian dollars ($231 million) from institutional investors following U.S. lithium company Albemarle’s decision to abandon its proposed takeover.
The ASX-listed company on Friday said it would issue 203 million new shares to new and existing equity holders at A$1.80 a share. In addition to the institutional placement, Liontown announced a A$10.8 million placement to Chair Timothy Goyder and plans to raise up to A$45 million in a share purchase plan.
Liontown said the institutional placement completed funding to take its Kathleen Valley lithium operation in the Australian Outback through to first production and beyond.
“I am immensely proud that this funding has attracted such positive domestic and international investment and equity market support which, in turn, demonstrates a strong vote of confidence in the Kathleen Valley Project,” Chief Executive Tony Ottaviano said.
Liontown, which has agreed to supply lithium to buyers including Ford Motor and Tesla after it starts producing lithium-rich spodumene concentrate next year, turned to investors and also secured A$760 million in debt commitments after Albemarle this week walked away from a proposed takeover.
Albemarle cited the difficulty of completing a deal after Australia’s richest person bought a large stake in the company. Gina Rinehart’s Hancock Prospecting said on Oct. 11 it had acquired a 19.9% stake in Liontown and wants to have a prominent influence over the company’s future.
Write to Stuart Condie at [email protected]
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