Liontown secures millions for Kathleen Valley

The Kathleen Valley lithium project in WA. Image: Liontown Resources….

Kathleen Valley project IVKathleen Valley project IV

The Kathleen Valley lithium project in WA. Image: Liontown Resources.

Liontown Resources has entered into a $550 million debt facility agreement for the planned ramp-up and expansion of the Kathleen Valley lithium project in Western Australia.

The agreement was designed to ensure the Kathleen Valley project is funded through its first production and ramp-up to the planned three million tonnes per annum (Mtpa) base case.

It will also provide Liontown with financial certainty and sufficient time to complete the previously announced review of Kathleen Valley’s 4Mtpa expansion planned for year six of operations.

“Liontown is very pleased to announce the debt funding facility today and I would like to acknowledge our lending syndicate for their support which once again reinforces the world class qualities of the Kathleen Valley project,” Liontown Resources managing director and chief executive officer Tony Ottaviano said.

“Having this funding in place provides strong endorsement for our project and a platform of financial certainty from which to move forward. We are consequently well-positioned to deliver the remaining milestones to first production mid-year and ramp-up towards anticipated positive cashflows.”

Liontown said it will continue to explore options for a longer-term funding solution to provide future flexibility and optionality beyond the 3Mtpa base case.

The company bookmarked the December 2023 quarter by commencing underground mining at Kathleen Valley, a significant milestone considering the recent drop in lithium prices.

The Kathleen Valley project remains on schedule and budget to commence first production in the middle of 2024.

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