Liontown Resources flags monster $490m raising

Liontown Resources has announced a monster $490 million equity raising to fund the bulk of its Kathleen Valley lithium project near Leinster.    The raising comes just weeks after the Tim Goyder-chaired company released a definitive feasibility study for its flagship $473m project which is expected to produce 500,000 tonnes a year of spodumene concentrate in its first five years of operation, rising to 700,000tpa from year six of a 23-year minelife.

The company has also recently signed a landmark indigenous land use agreement with the local Tjiwarl Native Title holders that clears a path for further permitting to go ahead.  Liontown said the raising would enable it to finalise discussions with offtake partners and commercial lenders, order long-lead items, finalise permitting and accelerate development towards first production in 2024.

Liontown has described Kathleen Valley as a tier-one global lithium project with outstanding economics and sector-leading sustainability credentials.  The recent study gives it a post-tax net present value of $4.2 billion based on an 8 per cent discount and an internal rate of return of 57 per cent.

The expansion would give the project’s production profile a similar scale to Pilbara Minerals’ planned 800,000tpa-850,000tpa operation at its Pilgangoora mine in the Pilbara and make the company a top-five global producer.

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