Liontown executes Binding Offtake Agreement with Ford, announces Final Investment Decision for new WA lithium mine

Liontown Resources (ASX:LTR)

ASX Announcement

29/06/2022

Final Investment Decision clears the way for construction to commence at the world-class Kathleen Valley Lithium Project in Western Australia

Highlights

  • With high-calibre foundational offtake agreements now in place with Ford, Tesla and LG Energy Solution, and financing commitments secured that will allow the project to be funded through to first production, the Liontown Board has made the Final Investment Decision (FID) to proceed to develop Kathleen Valley.
  • First production of spodumene concentrate is scheduled for Q2 2024.
  • In preparation for project delivery, the Company intends to award a series of major contracts (including EPCM, Power Purchase Agreement, freight logistics, bulk earthworks and open cut mining services) to established and high-quality contractors.
  • Accommodation village design, build and construction has been awarded to ADD Business Group, with manufacture and site preparation works already underway.
  • Early grade control drilling is well advanced at the planned two open pits ahead of anticipated pre-production mining commencing in Q1 2023.
  • The capital cost estimate for the Project has been revised as part of the FID process.

Liontown Resources Limited (ASX: LTR) (Liontown or the Company) is pleased to announce that the Company’s Board has endorsed the full development of its 100%-owned Kathleen Valley Lithium Project in Western Australia (Kathleen Valley or the Project).

The Final Investment Decision (FID) follows Liontown executing its third and final foundational offtake agreement, together with a A$300 million debt facility (Funding Facility), with leading global automaker, Ford Motor Company (Ford) (refer to ASX Announcement 29 June 2022). It also follows the previously announced foundational offtake agreements with Tesla (refer to ASX announcement 6 June 2022) and LG Energy Solution (refer to ASX announcement 2 May 2022).

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