Lithium developer Liontown Resources (ASX:LTR) is raising A$266 million through a fully underwritten placement of 364.4 million shares at 73 cents each — a 13.6% discount to Wednesday’s closing price of 84.5 cents — ahead of its return to trade.
The raise will see the taxpayer-funded National Reconstruction Fund Corporation (NRF) invest A$50 million, alongside participation from Liontown directors. However, the company did not clarify whether major shareholder Hancock Prospecting — which holds a 19.9% stake — will also participate.
“The capital raising fortifies Liontown’s balance sheet and has been sized to ensure resilience across a range of lithium price environments,” the company stated. It expects to emerge with a pro forma cash balance of A$422 million, positioning it to “capitalise on a recovery in lithium prices.”
Chief executive officer Tony Ottaviano said the funding will “support the ramp-up and underground transition at Kathleen Valley (in Western Australia),” while also providing “prudent liquidity”.
Legal advice for the placement was provided by Allens, with Greenhill, an affiliate of Mizuho, acting as financial adviser.
The company is currently in trading halt.