Liontown Strengthens Balance Sheet with AU$316 Million Capital Raising

Highlights:

• AU$316 million secured through institutional and conditional placements to strengthen liquidity and support growth.
• Share Purchase Plan (SPP) to raise up to AU$20 million, offering existing shareholders the same AU$0.73 placement price.
• Pro forma cash balance of ~AU$472 million expected post-raising, positioning Liontown for a lithium market recovery and operational ramp-up.

Multi-Tranche Placement to Boost Liquidity

Liontown Resources Limited (ASX: LTR) has successfully secured approximately AU$316 million through a two-tranche capital raising designed to reinforce its financial position and support future growth. At the time of writing, the company confirmed it completed a fully underwritten institutional placement worth about AU$266 million, issuing 364.4 million new shares at AU$0.73 each.

In addition, Liontown exercised its option to conduct a non-underwritten conditional placement to raise AU$50 million, with participation from Canmax Technologies Co., Ltd., a major global lithium chemicals producer, and other institutional investors. This tranche remains subject to shareholder approval and regulatory clearance from Chinese authorities.

Share Purchase Plan for Retail Investors

Alongside the placements, Liontown will launch a Share Purchase Plan (SPP) offering eligible shareholders the opportunity to acquire up to A$30,000 in additional shares at the placement price, aiming to raise up to AU$20 million. The SPP is not underwritten and may be scaled back depending on demand. All board members have pledged to participate, reflecting confidence in the company’s growth strategy and the long-term value of its flagship Kathleen Valley operation.

Strategic Positioning for Lithium Market Recovery

Managing Director and CEO Tony Ottaviano highlighted strong domestic and offshore institutional support, including a A$50 million investment from the National Reconstruction Fund Corporation. He noted that the capital raising strengthens Liontown’s capacity to manage varied lithium price environments, while funding the ramp-up to 100% underground operations. Settlement of the institutional placement is scheduled for 12 August 2025, with new shares allotted the following day. Proceeds will provide Liontown with a pro forma cash balance of around A$472 million (excluding any SPP contributions), positioning the company to capitalise on opportunities when lithium prices rebound.

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