Australian battery minerals producer Liontown Resources says it has secured a debt funding package and an equity raise totalling A$1.13 billion. Liontown secured the commitment from a syndicate of banks and government credit agencies. The lending syndicate includes ANZ, CBA, HSBC, NAB, Société Générale and Westpac.
Export Finance Australia and the Clean Energy Finance Corporation have agreed to provide the financing with a ten-year term and seven-year term, respectively. These debt facilities will replace the existing A$300 million debt with Ford.
Furthermore, Liontown will carry out an equity raise of A$376 million with a fully underwritten institutional placement to garner A$365 million, which will see the issuance of around 203 million new shares.
Liontown CEO Tony Ottaviano said: “The execution of this credit-approved term sheet and the launch of the equity raise are critical achievements in de-risking the development of the Kathleen Valley project. These initiatives ensure we are funded to first production and beyond.”
The company plans to use the funding to support its flagship Kathleen Valley lithium project near Perth in Western Australia.
This project is located on the western edge of the Norseman-Wiluna Greenstone Belt within the Archaean Yilgarn Craton and hosts lithium mineralisation within spodumene-bearing pegmatite dykes.
The funding will be used for capital costs at the project, including early mine development and to build preproduction stockpiles.
It will also be used to cover corporate costs and working capital requirements and provide prudent liquidity through to first production and beyond.
The financing has been secured at a time when US chemical company Albemarle ditched its US$4.3 billion buyout bid for Liontown, owing to complexities associated with the deal.