Multi-billion-dollar lithium play Liontown Resources has sought to quell media speculation surrounding a potential equity raising for its tier-one Kathleen Valley project.
Multi-billion-dollar lithium play Liontown Resources has sought to quell media speculation surrounding a potential equity raising for its tier-one Kathleen Valley project.
In an announcement to the ASX, Liontown confirmed it had no shortage of financing proposals, including debt, equity and customer funding since revealing a game-changing definitive feasibility study for its Kathleen Valley lithium operation in the Goldfields last week.
Liontown estimated Kathleen Valley, which it claims could be one of the biggest lithium mines in the world, would require $473 million in short-term funding with a total project capital expenditure of $2 billion.
But the company stopped short of confirming finer details of how much it would raise and where the funding would come from in response to an article published on Sunday, which reported Liontown was consulting with Macquarie Bank and Bell Potter Securities for potential backers.
“As outlined in the definitive feasibility study announcement and presentation releases on November 11 2021, the company will require further capital to progress the development of its Kathleen Valley lithium project,” the company's statement read.
“The company is progressing a range of funding options but has not yet determined the preferred mechanism, quantum or timing of funding for Kathleen Valley and it does not have in place any mandate to raise equity.”
In its definitive feasibility study presentation, Liontown said it had received strong interest from tier one domestic and international banks for debt funding for initial project outlays.
The company also hinted at a potential capital raise, saying strength in equity markets had been evidenced by “strongly supported raises across lithium peers”.
Liontown expects to make a final investment decision on the project before June 30 and start production in the first half of 2024.
The company says it will continue to assess financing proposals.
In other equity raising activity, Nexus Minerals announced it had secured firm committments to raise up $19 million for advance drilling at its Wallbrook gold project in the eastern Goldfields.
The company offered up shares at 46 cents, an 8 per cent discount on its November 10 trading price.
Liontown shares closed the day up 4.78 per cent at $1.64.
Nexus shares were up 16 per cent to trade at 58 cents.
