Liontown seeks to raise up to A$490M to fund Kathleen Valley's development

Liontown Resources Ltd. said Dec. 1 that it plans to raise up to A$490 million through a fully underwritten institutional placement of about A$450 million, plus up to A$40 million via a non-underwritten share purchase plan to existing eligible shareholders.

The proceeds of the share placement and share purchase plan, both at A$1.65 per share, will be used to fund the development of the Kathleen Valley lithium-tantalum project in Western Australia, corporate costs and working capital, as well as for exploration and study costs.

A definitive feasibility study on Kathleen Valley defined a A$4.2 billion net present value, discounted at 8%, a 57% internal rate of return, and a 2.3-year payback period.