Liontown Resources announced on Thursday that it has successfully secured AUD 760 million in binding debt commitments, along with an additional AUD 376 million in equity, to support the development of its Kathleen Valley lithium operation located in the Australian Outback.
Following the commencement of lithium-rich spodumene concentrate production next year, Liontown has already established agreements with notable buyers such as Ford Motor and Tesla. The company intends to utilize the funds raised from the debt facilities and equity financing for the repayment of existing debts and to cover the remaining capital costs associated with the project.
Liontown emphasized that this funding package ensures "prudent liquidity through to first production and beyond."
Over the past two years, the project's cost has doubled, largely attributed to inflationary pressures and modifications to the initial plant capacity. Among these changes, an increase in the plant's size was included.
Recently, Albemarle, a US-based chemicals company, abandoned its proposed $4.16 billion takeover bid for Liontown. The decision came as a result of the challenges involved in completing the deal following Australian billionaire Gina Rinehart's Hancock Prospecting's acquisition of a significant 19.9% stake in Liontown. Hancock Prospecting aims to exert a prominent influence over Liontown's future operations.
