- Liontown Resources (LTR) announces a $52 million placement and new geochemical results from the Koojan Joint Venture Project in Western Australia
- The sampling results have expanded the Mallory and Bourbana anomalies and returned high-grade gold and platinum group element values
- Liontown will conduct follow up geophysical work and drill testing as part of the exploration expenditure requirement under the joint venture with Lachlan Star (LSA)
- Around 68.42 million shares will be issued under the placement at 76 cents per share to institutional and sophisticated investors
- The money will be used to develop the Kathleen Valley Lithium-Tantalum Project and progress to the production phase by 2024
- Company shares are down 4.44 per cent to trade at 80.8 cents
Liontown Resources (LTR) has welcomed today’s session with new results from the Koojan Project as well as a $52 million capital raise.
Capital raise
The company received firm commitments to raise $52 million through a placement.
Liontown will issue around 68.42 million shares to institutional and sophisticated investors at 76 cents per share. The issue price marks a 10.1 per cent discount to the last closing price of 84.5 cents on July 9.
The ASX-lister will use the money to develop its wholly-owned Kathleen Valley Lithium-Tantalum Project. Along with its existing cash reserves and liquid assets, the money is set to enable Liontown to accelerate development and achieve its goal of reaching production in 2024.
Further, it will position the company to take advantage of the strong lithium demand outlook, particularly due to Kathleen Valley being the only large >40 million tonne, pre-development phase, hard rock lithium project in the world.
The placement is expected to settle on July 21 and shares will be allocated on the following day.
Koojan results
In addition, Liontown Resources has received more results from geochemical sampling at the Koojan Project in Western Australia.
The project is held in a joint venture with fellow ASX-lister, Lachlan Star Resources (LSA), which was announced in January this year.
The joint venture deal involves Liontown earning a 51 per cent interest in the project by spending $4 million on exploration within five years.
Positively, the latest results have enhanced the previously defined Mallory and Bourbana targets.
The Mallory platinum group element (PGE)-gold anomaly has now been defined over two kilometres of strike which is a 600-metre expansion. It also returned PGE values above 100 parts per billion (ppb).
The Bourbana gold anomaly has been defined over a two-kilometre by 2.4-kilometre area with gold values of up to 135ppb gold. The anomaly is coincident with linear magnetic highs that suggest the presence of iron-rich mafic units.
Latest results also defined four other geochemically anomalous areas which the company will follow up with geophysical work and drill testing.
Company shares were down 4.44 per cent to trade at 80.8 cents at 10:48 am AEST.