Liontown Amends Debt and Offtake Agreements with Ford
Key points
- Deferred principal and interest repayments to Ford by 1 year
- Reduced spodumene volumes to be delivered to Ford
- Provides Liontown strategic flexibility to sell more volumes in the spot market or pursue new partnerships
Full summary
Liontown Resources Ltd (ASX: LTR) has executed amendments to its debt facility agreement and spodumene concentrate offtake agreement with Ford Motor Company. The amendments to the Facility Agreement will defer principal and interest repayments to Ford by 12 months, with the first payment now due on 30 September 2026 instead of 30 September 2025. All other terms of the debt facility, including interest margin and security, remain unchanged. The Offtake Agreement has also been amended to reduce the volumes to be delivered to Ford from 512,500 dmt to 256,250 dmt, with no volumes to be delivered in 2027 and 2028. Ford has the option to be released from its take-or-pay obligations over the remaining volume. These changes provide Liontown with improved near-term balance sheet liquidity while also giving the company greater strategic flexibility to sell additional spodumene volumes in the spot market or pursue new strategic partnerships as the lithium market continues to evolve.
Outlook
The amended agreements with Ford provide Liontown Resources with improved near-term liquidity and greater strategic flexibility to take advantage of future market opportunities as the lithium market continues to evolve.
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