Latest news with #DavidGall
Yahoo
3 days ago
- Business
- Yahoo
Liontown to raise approximately A$266m through placement and offer share purchase plan
Liontown Resources has launched a fully underwritten placement to raise approximately A$266m ($173.2m) at an issue price of A$0.73 per share. This capital-raising effort also includes a non-underwritten share purchase plan (SPP) to raise up to an additional A$20m. The move aims to strengthen the company's balance sheet and provide a liquidity buffer during a period of lower prices. The proceeds from this capital raising will support the ramp-up and underground transition of the Kathleen Valley Lithium operation, as well as fund general corporate purposes and transaction costs. Liontown reserves the right to accept oversubscriptions through a non-underwritten conditional placement. In a significant boost to the project, the National Reconstruction Fund Corporation (NRFC) has also committed A$50m to support the Kathleen Valley Lithium operation. NRFC CEO David Gall said: 'Lithium is a critical mineral that is central to both decarbonisation efforts and the government's Future Made in Australia strategy. "Australia is well-positioned to be a competitive, long-term supplier of lithium to the rest of the world and local lithium production is important to the nation's economic security and resilience. 'Our investment in Liontown will help to attract private capital and develop Australia's resources sector. It is aligned with the government's strategy of transforming Australia into a global leader in the critical minerals supply chain.' The operation, which commenced production of spodumene concentrate on 31 July 2024, is one of Australia's largest and most advanced lithium projects, with a production capacity of 500,000 tonnes per annum and potential for future expansion. As a key supplier of lithium to major global manufacturers such as Tesla, Ford and LG Energy Solution, Liontown is positioned to contribute significantly to Australia's industrial capacity in the critical minerals supply chain. Liontown has also awarded contracts to Tjiwarl community businesses, with the company's approach to First Nations engagement serving as a model for the mining industry. Liontown CEO Tony Ottaviano said: 'We are pleased to welcome NRFC as a cornerstone investor in Liontown. Their investment is a strong endorsement of Kathleen Valley's strategic importance and long-term value.' The initiation of underground production at the Mt Mann orebody in April this year marked a pivotal transition for Kathleen Valley, setting the stage for the operation to become Australia's first underground lithium mine by fiscal year 2026. "Liontown to raise approximately A$266m through placement and offer share purchase plan" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
West Australian
4 days ago
- Business
- West Australian
Liontown Resources ups equity raise welcomed by the market to $336m after adding Chinese investor
A Chinese lithium-ion battery manufacturer has joined Liontown Resources' substantial capital raising by matching a $50 million investment made on behalf of Australian taxpayers. Liontown could now raise up to $336m after Shenzen-listed Canmax Technologies tipped in $50m on top of a fully-underwritten $266m share placement the lithium miner launched on Thursday. Liontown pulled the trigger on the placement at a price of 73¢ a share — a 13.6 per cent discount to the company's previous closing stock price of 84.5¢. But value of its shares sprung back after emerging from the trading halt to finish Friday at 84.5¢. Lithium stocks across the board made strong gains on Friday. The Federal Government-owned National Reconstruction Fund Corporation cornerstoned the initial tranche of the placement by investing $50m. 'Australia is well-positioned to be a competitive, long-term supplier of lithium to the rest of the world and local lithium production is important to the nation's economic security and resilience,' NRFC chief executive David Gall said on Thursday. 'Our investment in Liontown will help to attract private capital and develop Australia's resources sector. It is aligned with the Government's strategy of transforming Australia into a global leader in the critical minerals supply chain.' Canmax on Friday matched the NRFC's equity contribution by pouring in $50m on the same price terms as the Federal Government investment vehicle and the placement's other participants. A Liontown spokesman said the NRFC was aware Canmax would participate in the raising. NRFC did not respond to requests for comment. Existing Liontown shareholders can take part in a $20m share purchase plan on the same price terms as the two-tranche placement. All of the company's directors, including chairman Tim Goyder, are set to participate in the share purchase plan. Mr Goyder owns 13.8 per cent of the company while Gina Rinehart's Hancock Prospecting is the number one shareholder with 18.1 per cent. Both rich-listers are set to see their major stakes diluted by the capital raising, but the Hancock reduction will be more severe given Mrs Rinehart has decided to not participate in the raising. 'Hancock are very supportive of the company generally, but I think their priorities, and this has been publicised, their priorities have now shifted into the US and investment opportunities in the US,' Mr Ottaviano told The West Australian on Thursday morning. Mr Ottaviano then apologised for those comments, and similar statements made to other media outlets, on Thursday evening. 'Hancock's strategy is entirely a matter for Hancock and I should not have commented on or speculated their reasons for non-participation in the transaction,' a statement on Liontown's website read. 'I unreservedly retract those comments.'
West Australian
5 days ago
- Business
- West Australian
Liontown Resources raising $286m to ‘fortify' balance sheet and target growth ‘opportunities'
Taxpayers are tipping $50 million into Liontown Resources as the Gina Rinehart-backed miner looks to stave off the lithium price rout and potentially buy a new mine by raising up to $286m. Liontown has launched a fully-underwritten share placement with new institutional investors to raise about $266m at a price of 73¢ a share — a 13.6 per cent discount to Liontown's last closing stock price of 84.5¢. The Federal Government-owned National Reconstruction Fund Corporation will cornerstone the placement by investing $50m. 'Australia is well-positioned to be a competitive, long-term supplier of lithium to the rest of the world and local lithium production is important to the nation's economic security and resilience,' NRFC chief executive David Gall said. 'Our investment in Liontown will help to attract private capital and develop Australia's resources sector. It is aligned with the Government's strategy of transforming Australia into a global leader in the critical minerals supply chain.' Existing Liontown shareholders can take part in a $20m share purchase plan on the same price terms as the placement. All of the company's directors, including chairman Tim Goyder, are set to participate in the share purchase plan. Mr Goyder owns 13.8 per cent of the company while Mrs Rinehart's Hancock Prospecting is the number one shareholder with 18.1 per cent. Both rich-listers are set to see their major stakes diluted by the capital raising. Hancock declined to comment. The raising will boost Liontown's cash position to about $422m. It had $155m of cash and more than $720m of debt at June 30. Weak lithium prices have hamstrung the ability of its Kathleen Valley mine in the northern Goldfields to generate meaningful cash flow. Liontown chief executive Tony Ottaviano said the fresh injection of capital 'fortifies' the company's balance sheet, provides liquidity, and supports the ramp-up and underground transition at Kathleen Valley. 'Liontown is well placed to remain resilient in this low-price environment whilst retaining flexibility to pursue low-cost, high return opportunities to maximise value,' he said. The company's chief commercial officer Grant Donald told The West Australian last month Liontown was interested in buying another lithium mine despite its tight liquidity position. 'We shouldn't just think about Liontown as a target for mergers and acquisitions, ultimately we've delivered Kathleen Valley . . . we don't want to be a single asset company,' he said. 'There's still opportunity out there, and so we're very much thinking about what opportunities may be present in this low-price environment.' Mr Donald implied Liontown was open to examining opportunities in Australia or the Americas, but not the world's other lithium hotspot — Africa. Liontown's stock has gained nearly 50 per cent so far this year after a horror 2024. Citi analyst Kate McCutcheon said Liontown pulling the trigger on a capital raise was not a surprise. 'Our base case had been that Liontown required additional liquidity in the 2026 financial year and we don't expect the raise to be a surprise to the market,' she said. 'We expect this additional liquidity to quash questions on when Kathleen Valley will enter care and maintenance.'
