Liontown Resources (ASX:LTR) Raises Approximately A$316 Million in Two-Tranche Placement
Capital Raising Overview
Liontown Resources Limited (ASX:LTR) has successfully completed a capital raising of approximately A$316 million through a two-tranche placement. The first tranche includes a fully underwritten institutional placement of around 364.4 million new shares at A$0.73 per share, raising ~A$266 million. The second tranche involves a non-underwritten conditional placement to Canmax Technologies and other institutional investors to raise an additional A$50 million.
Institutional Placement Details
The institutional placement attracted strong demand from both domestic and offshore investors, including a A$50 million investment from the National Reconstruction Fund Corporation (NRFC). UBS Securities Australia Limited, Bell Potter Securities Limited, and Argonaut Securities Pty Ltd acted as joint bookrunners and lead managers for the placement.
Conditional Placement Details
Canmax Technologies Co., Ltd., a leading producer of lithium chemicals, has agreed to subscribe for approximately 68.5 million shares subject to shareholder and Chinese regulatory approvals. This investment reflects confidence in Liontown’s Kathleen Valley Operation and the demand outlook for lithium products.
Share Purchase Plan (SPP)
Additionally, Liontown is undertaking a Share Purchase Plan allowing existing eligible shareholders to bid for up to A$30,000 of additional shares without brokerage or transaction costs. The SPP aims to raise up to A$20 million, subject to shareholder approval.
Future Financial Position
Upon completion of the capital raising, Liontown anticipates a pro forma cash balance of approximately A$472 million, ensuring resilience across various lithium price environments and positioning the company to capitalise on market opportunities.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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