Photo by: Bloomberg
PERTH (miningweekly.com) – Unlisted Hancock Prospecting’s stake in lithium developer Liontown Resources reached 16.7% at the end of last week, with the company saying it had paid no more than A$3 a share.
Hancock was now Liontown’s largest shareholder and said in a statement that it welcomed the opportunity to participate in Liontown’s Kathleen Valley project as a shareholder, and to have an influence on the company’s overall future direction.
Hancock said that it would not put forth a nomination for a director to the Liontown board, but would remain open to this possibility as its strategic stake in Liontown moves towards 19.9%.
Hancock previously expressed its concerns around Liontown’s ability to bring the Kathleen Valley project to fruition, after Liontown warned that capital costs for the project were now estimated at A$951-million, up from the previous estimate of A$895-million. Liontown also shelved plans for a direct shipping ore (DSO) operation at Kathleen Valley on the back of the softening lithium prices, a move which has drawn criticism from Hancock.
It has been widely speculated that Hancock’s increasing stake in Liontown would give the company the leverage to block a takeover offer from critical minerals major Albemarle.
Albemarle is in the midst of a due diligence on Liontown after announcing a A$6.6-billion bid for Liontown, tentatively offering A$3 a share for the ordinary outstanding shares in the company.