Liontown Resources Ltd (ASX:LTR) has received firm commitments to raise $1.3 million before issue costs to fund the exploration and evaluation of its lithium projects in Australia and Africa.
The non-brokered placement, comprising 87,133,335 shares at an issue price of $0.015 per share, was oversubscribed with support from a number of sophisticated and professional investors.
Liontown shares have been on a tear since August 2015 when the share price was $0.005.
The funds raised will be used to advance the company’s exploration and drilling activities at the Bynoe Lithium Project in Northern Territory, the Mohanga Lithium Project in Tanzania and for general working capital purposes.
The placement is scheduled to be completed on or around 31 March 2016.
Liontown has also reached an agreement with Chairman Tim Goyder to settle at par, an outstanding loan of $350,000 provided by Mr. Goyder, by issuing 23,333,333 shares to him at $0.015 per share.
In addition, 2,666,666 fully paid ordinary shares will be placed to the company’s non-executive director Craig Williams at $0.015 per share to raise an additional $40,000.
The Company will hold a general meeting of shareholders in May 2016 to consider the issue of shares to Mr Goyder and Mr Williams.
Liontown had announced in early February 2016, the acquisition of the Bynoe Lithium Project near Darwin.
Liontown announced further expansion of the Bynoe project in March 2016, by acquiring the Hang Gong pegmatite.
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