Lithium miner Liontown Resources has announced plans to raise up to $286 million at a discounted price of 73 cents, with a government-owned investor tipping in a large share.
Lithium miner Liontown Resources has announced plans to raise up to $286 million at a discounted price of 73 cents, with a government-owned investor tipping in a large share.
In a bid to fortify its balance sheet, Liontown told the market on Thursday it would be undertaking a fully-underwritten placement to the tune of $266 million, coupled by a non-underwritten share purchase plan to fetch up to $20 million.
Under the placement, Liontown said it would issue 364.4 million shares at an issue price of 73 cents per share.
This price represents a 13.6 per cent discount to the company’s final closing price on August 6, prior to ducking into its trading halt.
A cornerstone investor within the capital raise is the federal government’s National Reconstruction Fund Corporation, which will contribute $50 million.
It is understood that Gina Rinehart’s Hancock Prospecting, which had an 18 per cent shareholding in Liontown, did not participate in the raising.
The joint lead managers and underwriters for the raising are UBS, Bell Potter and Perth firm Argonaut.
Liontown’s long-time advisers, law firm Allens and financial advisory firm Greenhill, worked on the latest raising.
It is the third large raising over the past two years by Liontown, which has been battered by the fall in lithium prices over that period of time.
The company raised $389 million at $1.80 per share in 2023 and $US250 million ($379 million) via the issue of convertible notes in 2024.
The support for the latest raising reflected both its discounted pricing but also market confidence in the quality of Liontown’s Kathleen Valley project.
NRFC boss David Gall said the investment could bode well for Australia's resources sector.
"Australia is well-positioned to be a competitive, long-term supplier of lithium to the rest of the world and local lithium production is important to the nation’s economic security and resilience,” Mr Gall said.
“Our investment in Liontown will help to attract private capital and develop Australia’s resources sector.
“It is aligned with the government’s strategy of transforming Australia into a global leader in the critical minerals supply chain.”
Following the completion of the raise, Liontown said its balance sheet would ideally leave it with a cash balance in the vicinity of $422 million.
Last month, Mr Ottaviano said FY26 would be a 'transitional year' for the company, as it plans to not only navigate through a low price environment, but also transition into a underground-based lithium miner.
Liontown shares last traded at 84.5 cents.
