- Liontown Resources (ASX: LTR) officially concludes a A$550 million debt facility agreement (Debt Facility)
- Agreement aims to secure funding for the Kathleen Valley Lithium project, spanning from its initial production phase to the 3Mtpa (million tonnes per annum) base case ramp-up
- Liontown expects no immediate need to access the debt facility until early in Q3 CY24
- The lending syndicate includes the Commonwealth Bank of Australia, National Australia Bank Limited, and Societe Generale
- LTR last traded at $1.43, at 2pm AEDT
Liontown Resources (ASX: LTR) has officially concluded a A$550 million debt facility agreement (Debt Facility) to expand its Australian flagship lithium project.
The lending syndicate comprises prominent institutions, including the Commonwealth Bank of Australia, National Australia Bank Limited, and Societe Generale.
The news is being well received with Liontown shares jumping 10% at one point in intraday trade.
The agreement aims to secure funding for the Kathleen Valley Lithium project, spanning from its initial production phase to the 3Mtpa (million tonnes per annum) base case ramp-up.
The debt facility offers financial assurance but also gives Liontown time to complete the ongoing assessment of Kathleen Valley’s 4Mtpa expansion, which includes an analysis of operational expenditures and capital requirements.
The implementation of a longer-term funding solution might precede any utilisation of the debt facility. Liontown expects no immediate need to access the debt facility until early in Q3 CY24.
“Having this funding in place provides strong endorsement for our project and a platform of financial certainty from which to move forward,” Liontown’s Managing Director and CEO Tony Ottaviano said.
“We are consequently well-positioned to deliver the remaining milestones to first production mid-year and ramp-up towards anticipated positive cashflows.”
Additionally, Australia’s Export Finance Australia (EFA) and the Clean Energy Finance Corporation (CEFC) are part of the syndicate.
The company expects scheduled commencement of the first production at Kathleen Valley by mid-year.
LTR last traded at $1.43, at 2pm AEDT.