Liontown Resources’ $760m debt funding facility scrapped
Liontown Resources’ (ASX:LTR) $760m debt funding facility for Kathleen Valley has been terminated due to the recent material decline in spodumene prices.
As a result, discussions have begun for a revised, smaller facility and Liontown has been advised by lenders that they remain highly supportive of Kathleen Valley.
Due to the recent decline in spodumene prices, significant reductions have been made in short and medium-term lithium price forecasts.
As a result, Liontown has begun a review of the planned expansion and associated ramp-up of Kathleen Valley to preserve capital and reduce near-term funding requirements.
The review includes examining options to defer the timing of the previously announced 4mtpa underground development work, sequencing adjustments to the mine plan and scope for additional cost optimisations.
There is no change to the 3mtpa plant capacity design which Liontown is currently constructing.
Kathleen Valley lies around 60km north of Leinster and 680km northeast of Perth in WA and has a mineral resource estimate of 156mt at 1.4% lithium oxide and 130ppm tantalum pentoxide.
In September 2023, engineering company Monadelphous was awarded a $100m multidisciplinary construction contract for the construction of the wet plant at Kathleen Valley and in November 2023 automated Sandvik loaders and drills were selected for work.
As of December 31, 2023, Liontown had around $515m in cash, having fully drawn the $300m project funding package secured from Ford. This is expected to fund construction activities required for first production in mid-2024.
 $760m debt funding facility for Kathleen Valley has been terminated due to the recent material decline in spodumene prices.){kind=link}