Lionstown shares surge on $550m deal
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More news: Shares in Liontown Resources gained 9.1% in morning trading after the lithium explorer announced a $550 million debt facility to fund its Kathleen Valley project through to its first production.
Shares were trading at $1.44 at 11:35am AEDT.
Liontown Resources enters $550m debt facility agreement
The news: Liontown Resources has entered into a $550 million debt facility, designed to ensure its Kathleen Valley lithium project is funded through first production.
The numbers: The Perth-based battery minerals producer said the debt facility aims to fund the Kathleen Valley project through its first production and ramp up of up to a three million tonnes per annum base case.
The context: The debt facility has support from a syndicate of lenders comprising Commonwealth Bank of Australia, National Australia Bank and Societe Generale, as well as Australia's export credit agency Export Finance Australia and clean energy investor Clean Energy Finance Corporation.
Liontown said that the Kathleen Valley project remains on schedule and budget to commence first production in the middle of this calendar year. Meanwhile, the company is continuing to explore options for a longer-term funding solution beyond the three million tonnes per annum base case, which could be implemented prior to any drawdown of the debt facility.
What they said: Liontown's managing director and CEO Tony Ottaviano said: "Liontown is very pleased to announce the debt funding today and I would like to acknowledge our lending syndicate for their support which once again reinforces the world class qualities of the Kathleen Valley Project".
"Having this funding in place provides strong endorsement for our project and a platform of financial certainty from which to move forward. We are consequently well-positioned to deliver the remaining milestones to first production mid-year and ramp-up towards anticipated positive cashflows."
The source: ASX announcement
