The Liontown situation yesterday is likely very similar to what we could see at RNU.
Last year a consortium of Banks agree to a $760m debt package, which included government sponsored export funding.
With the fall in Li prices the Banks pulled out.
The BOD in March this year salvaged a funding package for a reduced $550m.
Yesterdays announcement replaces the Banks all together, with an agreement with Korean battery maker LG Energy..
LG is providing cheaper capital than both CBA and NAB was offering. They are tipping in $US250m via a 5 yr con note.
LTR will pay interest at SOFR in either cash or shares.
The notes are convertible at $1.80 a share (95c a share this morning).
The upside for LG is they managed to extend its offtake agreement from 5 years to 15 years.
As Chanticleer at the AFR pointed out yesterday, critical mineral hopefuls will be funded by customers or strategic investors and equity holders, and propped up by government incentive programs.
I am looking forward to seeing what arrangement DC and our board have been busy putting together.
10x
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