(Bloomberg) -- Liontown Resources Ltd.’s shares plunged after resuming trading for the first time this week, after it announced it had lined up A$1.1 billion ($694 million) through an equity raising and a debt financing to fund its Kathleen Valley lithium project.

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Shares of Liontown fell as much as 35% at the open in Sydney, and were trading at A$1.875 apiece as of 10:12 a.m. in Sydney. The decline also comes after US giant Albemarle Corp. on Monday walked away from a proposed takeover that valued the Australian company at A$3 apiece.

The Perth-based company said Thursday it raised A$365 million through a share placement with institutional investors, and another A$10.8 million from Chairman Timothy Goyder. The shares were priced at A$1.80 apiece, representing a 35% discount to Liontown’s closing price of A$2.79 last week.

Liontown also signed commitment letters for a debt package of A$760 million from banks and government credit agencies, it said Thursday. The company plans to raise up to another A$45 million from existing shareholders.

Proceeds from the debt and equity raising will be used to refinance existing debt and completing costs for the lithium project.

Kathleen Valley, in Western Australia, is one of the most promising lithium deposits in the world, but has been pressured by higher input prices. In September, Liontown announced the project would cost A$951 million to enter production next year.

“We have ensured an appropriate financial buffer is in place to allow the company to successfully weather any unforeseen issues that may arise,” Chief Executive Officer Tony Ottaviano said in the statement, adding that the financings are critical in de-risking the development of the project.



Liontown on Monday requested a trading halt to allow it to finalize funding, after Albemarle announced it would not be pressing ahead with its A$6.6 billion takeover offer. The US giant pursued the Australian company for months, but found itself up against Australia’s richest woman, Gina Rinehart, after she built up a 19.9% stake that threatened to block any bidder.

Rinehart’s privately held Hancock Prospecting Pty said last week that it sought a “prominent influence in Liontown’s future.”

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