Latest news with #FederalGovernment-owned
West Australian
3 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
4 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.'
The Star
28-07-2025
- Politics
- The Star
465 encroachment cases on federal lands since in last ten years
KUALA LUMPUR: A total of 465 encroachment cases have taken place on lands owned by the Federal Government from 2015 till May 2025, the Dewan Rakyat was told. Datuk Seri Johari Abdul Ghani ( pic ), who is tasked with temporarily overseeing the Natural Resources and Environmental Sustainability Ministry, said these figures involved encroachment on Federal Government-owned land, which is a total of 215,406 hectares nationwide. 'For the case in Penang, 26 complaints involved encroachment on federal-owned land, which is 18 lots of land,' said Johari in Parliament on Monday (July 28). Johari said the Lands and Mines Department (JKPTG) director-general would coordinate joint programs with other enforcement agencies to address the issue of encroachment. According to Johari, notices under Section 425 of the National Land Code (Act 828) would be issued to encroachers. Johari also said to ensure that federal lands are not repeatedly encroached, the government will come up with a method that will involve ministries or the consumer department. 'Every federal-owned land has development plans based on the Malaysian Plan,' he said. 'But, developing the land is based on the priority and allocation given by the government,' added Johari.
