Liontown Resources ups equity raise welcomed by | Australian Markets
A Chinese lithium-ion battery producer has joined Liontown Resources’ substantial capital raising by matching a $50 million investment made on behalf of Australian taxpayers.
Liontown might now raise up to $336m after Shenzen-listed Canmax Technologies tipped in $50m on prime of a fully-underwritten $266m share placement the lithium miner launched on Thursday.
Liontown pulled the set off on the position at a price of 73¢ a share — a 13.6 per cent low cost to the company’s earlier closing stock price of 84.5¢.
But worth of its shares sprung back after rising from the trading halt to complete Friday at 84.5¢. Lithium stocks throughout the board made robust positive aspects on Friday.
The Federal Government-owned National Reconstruction Fund Corporation cornerstoned the initial tranche of the position by investing $50m.
“Australia is well-positioned to be a competitive, long-term supplier of lithium to the rest of the world and local lithium production is important to the nation’s economic security and resilience,” NRFC chief govt David Gall stated on Thursday.
“Our investment in Liontown will help to attract private capital and develop Australia’s resources sector. It is aligned with the Government’s strategy of transforming Australia into a global leader in the critical minerals supply chain.”
Canmax on Friday matched the NRFC’s equity contribution by pouring in $50m on the identical price phrases because the Federal Government investment vehicle and the position’s different contributors.
A Liontown spokesman stated the NRFC was conscious Canmax would take part within the raising. NRFC didn’t reply to requests for remark.
Existing Liontown shareholders can participate in a $20m share buy plan on the identical price phrases because the two-tranche placement.
All of the company’s administrators, together with chairman Tim Goyder, are set to take part within the share buy plan.
Mr Goyder owns 13.8 per cent of the company whereas Gina Rinehart’s Hancock Prospecting is the primary shareholder with 18.1 per cent.
Both rich-listers are set to see their main stakes diluted by the capital raising, however the Hancock discount might be more extreme given Mrs Rinehart has determined to not take part within the raising.
“Hancock are very supportive of the company generally, but I think their priorities, and this has been publicised, their priorities have now shifted into the US and investment opportunities in the US,” Mr Ottaviano instructed The West Australian on Thursday morning.
Mr Ottaviano then apologised for these feedback, and comparable statements made to different media retailers, on Thursday night.
“Hancock’s strategy is entirely a matter for Hancock and I should not have commented on or speculated their reasons for non-participation in the transaction,” a assertion on Liontown’s web site learn.
“I unreservedly retract those comments.”
Stay up to date with the latest news within the Australian markets! Our web site is your go-to source for cutting-edge financial news, market trends, financial insights, and updates on native trade. We present day by day updates to make sure you have entry to the freshest info on Australian stock actions, commodity costs, currency fluctuations, and key financial developments.
Explore how these trends are shaping the long run of Australia’s financial system! Visit us repeatedly for probably the most participating and informative market content material by clicking right here. Our rigorously curated articles will keep you knowledgeable on market shifts, investment methods, regulatory modifications, and pivotal moments within the Australian financial panorama.
