Liontown Resources has secured a $15 million interest free loan from the Western Australian Government under the $50 million Lithium Industry Loan Facility.
The Lithium Industry Loan Facility is a support program that aims to help the lithium sector amid the critical mineral’s downturn. It was introduced in January and is a central component of the WA Government’s broader $150 million lithium support package.
As per its deed of loan with the WA Government, Liontown will repay the loan through regular quarterly payments over a two-year period following the end of the interest-free period.
The interest-free period will end once the average lithium spodumene price has exceeded $US1100 ($1711) per tonne for two successive quarters, or by June 30 2026 – whichever option takes place first.
The WA Government has also confirmed that Liontown is eligible for a waiver of port charges and rebates for certain mining tenement fees from January 1 for a two-year period, or until the average lithium spodumene price per tonne exceeds $US1100 for two consecutive quarters.
“We thank the Western Australian Government for its support of Liontown and its immediate response to the needs of the sector,” Liontown managing director and chief executive officer Tony Ottaviano said.
“Its support in the current low-price environment demonstrates the (WA) Government’s understanding and unwavering commitment to the state’s critical lithium industry.”
Liontown said the loan is unsecured and won’t impact the terms and conditions of its existing debt facilities. The company will receive the loan funds in the current June 2025 quarter.
In other Liontown news, the company’s Kathleen Valley lithium operation in WA produced 95,709 dry metric tonnes during the March quarter, a 12 per cent increase from the December 2024 quarter.
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