Liontown shares lift on port services and access deal

The news: Liontown Resources has secured a port services and access agreement with Mid West Ports Authority. The deal represents the final link in securing the supply chain for the pre-production lithium play's flagship Kathleen Valley project, the miner said.

The numbers: The initial agreement is for 10 years, with extension options for a further 10 and three years, in line with the expected life of the project. LTR shares were 2.4% higher in early trading, fetching $1.387.

The context: Liontown is expecting to begin production at Kathleen Valley from mid-2024. LTR shares are trading significantly lower than in October, when they hovered around $3 ahead of a failed $6.6 billion takeover bid by Albemarle. The New York-listed Albemarle cited "growing complexities" in its reasons for ditching the deal, which some have attributed to a 19.9% blocking stake bought-up by Gina Rinehart's Hancock Prospecting in the months before the transaction.

What they said: "The Port of Geraldton is a world-class facility with future growth aspirations, and Liontown is pleased to support the diversification of critical minerals exports out of the port for at least the next 20 years," Liontown chief executive Tony Ottaviano said in a statement.