- Liontown Resources (LTR) launches a fully-underwritten institutional placement to raise approximately $450 million
- To raise the funds, roughly 272.7 million new fully-paid ordinary shares will be issued to institutional investors priced at $1.65
- Liontown will also be undertaking a share purchase plan to raise a further $40 million, with eligible shareholders able to subscribe for up to $30,000 worth of shares
- The money from both the placement and share purchase plan will be used the fund the development of the Kathleen Valley lithium project in WA
- Liontown enters a trading halt with shares last trading at $1.92 on November 30
Liontown Resources (LTR) has launched a fully-underwritten institutional placement to raise approximately $450 million.
To raise the funds, roughly 272.7 million new fully-paid ordinary shares will be issued to institutional investors priced at $1.65.
This price represents a 14.1 per cent discount to Liontown’s closing price of $1.92 on November 30 and a 12.3 per cent discount to the five-day volume-weighted average price of $1.88.
Shares are expected to settle on December 6 and be allocated on December 7.
Additionally, Liontown will be undertaking a share purchase plan (SPP) to raise up to an additional $40 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.
While the SPP is capped at $40 million, Liontown has the right to accept oversubscriptions or scale back applications at its discretion.
The plan is expected to open on December 10, close on January 14 and shares will be allocated on January 21.
Liontown will use the money from both the placement and SPP to fund the development of its Kathleen Valley lithium project in WA.
The money will also be used to progress the downstream pre-feasibility study for the proposed lithium hydroxide plant as well as further exploration drilling.
CEO and Managing Director Tony Ottaviano commented on the placement.
“This is a fantastic outcome which caps off a transformational year for Liontown,” Mr Ottaviano said.
“Following the successful completion of the equity raising, Liontown will be well capitalised with certainty of funding for the stage one Kathleen Valley development, putting us in an enviable position moving into 2022.”
Liontown has entered a trading halt with shares last trading at $1.92 on November 30.