Kathleen Valley Debt Facility Secured for Liontown Resources

Highlights:

• Liontown Resources secures AU$550 million debt facility for Kathleen Valley Lithium Project.
• Debt facility ensures funding for project development and ramp-up to 3Mtpa base case.
• Flexible terms allow for future expansion plans and longer-term funding options.

Liontown Resources Limited (ASX: LTR) has finalized a AU$550 million debt facility agreement, marking a significant milestone for the company's Kathleen Valley Lithium Project. The debt facility, facilitated by a syndicate of leading international and domestic commercial banks and government credit agencies, ensures financial support for the project's initial production phase and ramp-up to the 3Mtpa base case.

Financial Security for Project Development

The debt facility, without scheduled repayments and with interest capitalized during the term, offers financial stability until maturity on October 31, 2025. Liontown plans to utilize the proceeds to refinance existing debt, fund construction, ramp-up activities, and bolster working capital liquidity.

Future Expansion Plans and Funding Flexibility

The agreement provides Liontown with time to conduct a comprehensive review of Kathleen Valley’s potential 4Mtpa expansion, including operational and capital requirements. Meanwhile, the company continues exploring longer-term funding solutions for enhanced flexibility beyond the initial phase. Flexible terms allow refinancing options before maturity if necessary.

Lender Syndicate and Project Progress

The syndicate of lenders includes prominent institutions such as Commonwealth Bank of Australia, National Australia Bank Limited, Societe Generale, Export Finance Australia (EFA), and the Clean Energy Finance Corporation (CEFC). Kathleen Valley remains on schedule and budget, targeting the commencement of first production in the middle of the calendar year.

CEO's Perspective and Advisory Support

Tony Ottaviano, Liontown’s Managing Director and CEO, expressed gratitude to the lending syndicate, emphasizing the endorsement of Kathleen Valley's quality. The funding provides a secure foundation for project advancement, positioning Liontown well to achieve upcoming milestones.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com