Liontown shares slump as royalty holder litigates

The news: Lithium miner and recent takeover target Liontown has lost half the week's gains as a royalty holder launched legal action over what they're owed for certain tenements in the Kathleen Valley project.

The numbers: Liontown shares were down 8.3% to $1.54 by 11:30am AEDT after surging as high as $1.72 since Monday in a broad-based rally. The private royalty holder, Drem, has filed legal proceedings to determine whether their owed royalty is 2% or a lesser percentage of gross production sales from the relevant tenements.

The context: Liontown said it did not believe the claim would be material to the company, or that it would impact its planned first production at Kathleen Valley in mid-2024.