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Highlights:

  • LTR secures ~AUD 266 million via fully underwritten institutional placement at AUD 0.73/share
  • Additional AUD 50 million conditional placement to Canmax and others subject to shareholder and regulatory approvals
  • Share Purchase Plan to raise up to AUD 20 million open to eligible shareholders from 14 August 2025

Liontown Resources Limited (ASX:LTR) has announced the completion of a fully underwritten institutional placement, raising approximately AUD 266 million through the issue of around 364.4 million new fully paid ordinary shares at a price of AUD 0.73 per share. The company also plans to raise an additional AUD 50 million via a conditional placement to Canmax Technologies Co., Ltd. and other institutional investors, bringing the total potential capital raised under the broader capital raising initiative to AUD 336 million before costs. Liontown Resources is a Western Australia-based lithium developer, advancing its flagship Kathleen Valley Lithium Project. The project is focused on supplying lithium products for battery manufacturers globally.

The institutional placement attracted interest from both domestic and international investors, including a AUD 50 million investment from the National Reconstruction Fund Corporation (NRFC). Settlement is scheduled for 12 August 2025, with new shares expected to be issued on 13 August 2025 under the company’s existing placement capacity per ASX Listing Rule 7.1. In addition to the institutional placement, Liontown has exercised discretion to proceed with a non-underwritten conditional placement. This includes approximately 68.5 million shares issued at the same placement price of AUD 0.73, intended to raise an additional AUD 50 million, subject to shareholder approval and Chinese overseas direct investment (ODI) approval for Canmax’s participation. The company expects to seek approval for the conditional placement at a General Meeting to be held in September 2025. Canmax, a major consumer of lithium raw materials and one of the world’s leading lithium chemical producers, is participating in this round, which reflects ongoing commercial alignment between the two companies.

Liontown will also conduct a non-underwritten Share Purchase Plan (SPP) targeting up to AUD 20 million. The SPP is open to eligible shareholders with a registered address in Australia or New Zealand as of 6 August 2025 and will be priced at AUD 0.73 per share, in line with the institutional placement. Eligible shareholders will be able to subscribe for up to AUD 30,000 worth of shares without brokerage or transaction fees. The SPP opens with the release of the offer booklet on or around 14 August 2025. 

According to the company, the proceeds will support Liontown’s operations, including the ramp-up and transition of the Kathleen Valley Project to underground operations. Subject to the conditional placement completing (and excluding any funds from the SPP), Liontown expects to hold a pro forma cash balance of approximately AUD 472 million. While the lithium sector has experienced recent price pressure, Liontown stated that the capital raising strengthens its financial position and allows flexibility to navigate various market conditions and explore development opportunities.

LTR is trading 7.10% lower at AUD 0.78 per share as of 8 August 2025.