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Liontown Resources (ASX:LTR) has launched a $266 million fully underwritten placement to reinforce its balance sheet and “ensure a resilient financial footing” as it ramps up activities at its flagship Kathleen Valley Lithium Operation.
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The institutional placement, priced at 73 cents per share, will see the issue of approximately 364.4 million new shares. A further A$20 million may be raised through a Share Purchase Plan offered to existing eligible holders.
“This capital raise ensures we remain well-funded to complete our ramp-up at Kathleen Valley, navigate current market softness, and maintain the flexibility to seize growth opportunities as lithium prices recover,” executive chair Tony Ottaviano said.
A key endorsement of the raise came from the National Reconstruction Fund Corporation, which has committed A$50M as part of the placement.
The capital raising will lift Liontown’s pro forma cash balance to around A$422M, before costs.
The funds will be used to secure the balance sheet, provide a liquidity buffer, and support the ramp-up and underground transition at Kathleen Valley, which is considered one of Australia’s most significant lithium developments.
The company also signalled it is focused on cost and capital discipline. Ongoing optimisation efforts aim to embed savings into FY26 and beyond, while the stronger balance sheet provides optionality to pursue low-cost, high-return projects.
The company also aims to reduce debt and is set to make the first repayment on its Ford debt facility in September 2025.
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To that end, management flagged the potential for early debt repayment in the event of a market rebound and surplus cash generation.
All board members intend to participate in the SPP, lifting confidence amongst investors.
LTR was halted at 84.5cps.
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