Liontown Resources Ltd (ASX:LTR) will undertake a $1.4 million rights issue to fast-track drilling of two highly prospective Australian lithium projects.
The funds will be used for drilling programs at the Bynoe Lithium Project in the Northern territory and the Kathleen Valley Lithium-Tantalum Project in Western Australia.
The drilling at the Bynoe Lithium Project, located 50 kilometres from Darwin, is planned to commence within the next few weeks.
The company recently completed a maiden drilling program at Bynoe, confirming the presence of thick spodumene-related lithium mineralisation.
Lithium values of >1% Li2O were returned at six of the initial 10 targets tested.
Drilling will also commence at the Kathleen Valley Project as soon as permitting and heritage clearance is obtained.
The project contains a spodumene-bearing pegmatite swarm extending 3.5 kilometres by 1 kilometre and represents an advanced lithium opportunity with walk-up drilling targets.
Surface samples of up to 3.5% Li2O have been discovered at the Mt Mann and Kathleen’s Corner prospects, enhancing the economic potential of the Kathleen Valley Project.
Liontown’s 1-for-5 non-renounceable pro-rata rights issue is at a price of $0.01 per share.
Notably, Liontown’s Chairman and largest shareholder, Tim Goyder, has confirmed his intention to take up his full entitlement worth $377,000.
All other directors have also committed to take up their full entitlements.
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