- Liontown Resources (LTR) has received commitments to raise $12.5 million for work at its projects in Western Australia
- Thanks to the fresh funding, the company’s flagship Kathleen Valley lithium-tantalum project is now fully funded until the completion of its definitive feasibility study
- Under the placement, new shares will be issued at 23 cents, a 13.2 per cent discount to the last closing price of 26.5 cents on October 26
- Company directors have subscribed for $2.17 million in shares, but this portion of the capital raise requires shareholder approval
- Liontown will use some of the proceeds to fund works at the Moora gold-platinum gold elements (PGE)- nickel-copper project, also based in Western Australia
- Shares have been trading 9.43 per cent lower early in the session at 24 cents
Liontown Resources (LTR) has received commitments to raise $12.5 million for works at its Kathleen Valley and Moora projects in Western Australia.
The company said its flagship Kathleen Valley lithium-tantalum project is now fully funded until the completion of the definitive feasibility study (DFS) in the fourth quarter of 2021.
Managing Director David Richards said the placement further de-risks the development pathway of the Kathleen Valley project.
“The strong demand from investors is testament to the quality, grade, scale and location of the Kathleen Valley Project — which is now firmly established as Australia’s fifth largest spodumene-lithium resource,” David stated.
“The majority of the funds raised will be allocated towards completing the Kathleen Valley DFS, including reviewing a number of opportunities to significantly enhance the financial metrics of the project,” he continued.
Additionally, the placement will fund initial drill testing of several geochemical anomalies at the Moora gold-platinum group elements (PGE)-nickel-copper project, located around 95 kilometres south of Chalice Gold Mine’s (CHN) Julimar Discovery.
“The proceeds will also allow us to advance our exploration programs in the new West Yilgarn Province, where we are looking forward to commencing drilling at the Moora Project to follow up on the exceptional gold-PGE-nickel-copper results generated from our early-stage exploration this year,” said the Managing Director.
Under the placement, new shares will be issued at 23 cents, a 13.2 per cent discount to the last closing price of 26.5 cents on October 26, 2020.
Company directors have subscribed for $2.17 million in shares, but this portion of the capital raise requires shareholder approval.
Shares have been trading 9.43 per cent lower at 24 cents at 10:30 am AEDT.