Liontown Resources secures more than $1b in equity and debt funding after Albemarle withdraws takeover bid

Liontown boss Tony Ottaviano has insisted the company retains a positive relationship with Hancock Prospecting after the Gina Rinehart-led miner’s share raid helped scupper Albemarle’s lucrative takeover bid. Those comments, made on Thursday, come on the same day as Liontown secured a $1 billion debt and equity funding package. Liontown had sought the new funding arrangement in the aftermath of Albemarle withdrawing its $3-per-share takeover offer after Hancock raided Liontown’s share register and acquired a blocking stake in the company. Debt will comprise the lion’s share of new funding as the company’s existing $300 million facility with auto-maker Ford is refinanced in favour of a new $760m credit-approved term sheet. Lenders lined up for the commercial facility include Australia’s big four banks and the Federal Government-backed Clean Energy Finance Corporation, while Government agency Export Finance Australia will stump up for the longer-term export credit agency facility. Meanwhile, a $365 million capital raising has been fully underwritten by UBS and Bell Potter with up to 209m shares to be issued at $1.80 each, representing a sizeable 35.5 per cent discount on the October 13 closing price of $2.79. That’s in addition to a $45m share-purchase plan and $10.8m commitment for 6m shares by company chair Tim Goyder. Speaking to The West Australian, Mr Ottaviano conceded it had been “quite a complex environment to navigate”, but argued debt and equity arrangements had been in the making “for some time”. Asked about the relationship with Hancock, Mr Ottaviano insisted communications between the two had been “respectful”. “I mean, we’ve been very transparent with them and the market and we’re open (to them),” he said. “They say they can bring certain skills and contributions. “We’re open to all shareholders providing great ideas.” Mrs Rinehart, who overtook Mr Goyder as Liontown’s biggest shareholder earlier this month, has frequently voiced concerns with costings for Liontown’s Kathleen Valley lithium project Per previous financial disclosures, Liontown has about $300m in cash with Kathleen Valley’s development costed at about $950m. Shareholders will have until November 30, when Liontown’s annual general meeting is scheduled, to ponder the new arrangements, with the company on Thursday saying further details will be provided “in due course”. Mr Ottaviano said Kathleen Valley remained on track to begin production in mid-2024. “We’re working through Christmas; We’re pushing everything to get there (because) speed to market is critical,” he said. “The best way for me to maximise shareholder value is to bring the project in on time.”