In January 2019, Dr. Chris Baker initiated research on Liontown Resources Ltd (ASX:LTR). At the time of the report the share price was 2.4 cents per share. Dr. Baker's headline reads 'A new generation WA lithium play with a strong focus on grade, mine life and optimal metallurgical recoveries'. The scoping study numbers discussed in his note assume a Spodumene Price of US$650/t, a long way from spot prices today of US$6,000/t.
In February 2019, Bridge Street Capital Partners successfully raised $7.9 million at an issue price of 2 cents per share for Liontown. Funds raised contributed to funding a feasibility study at the Company's Kathleen Valley Project. In October 2020, Bridge Street showed continued support and received commitments for a $12.5 million placement at an issue price of 23 cents per share. If you had stayed the course of almost 2 years at this point, you would have already had a 10-bagger...
February 2019: Dr Chris Baker kicking the rocks at Kathleen Valley
On Tuesday, 28 March 2023, Liontown informed the market that they received and rejected an unsolicited, conditional, and non-binding indicative proposal from Albemarle Corporation (Albermarle), in which Albemarle would acquire all of the shares in Liontown at a price of $2.50 per share via a scheme of arrangement. Liontown noted that a subsidiary of Albemarle had been building a stake in Liontown of ~2.2% through on-market purchases. That day, Liontown shares closed at $2.57 per share. Two days later, Liontown advised that Albemarle had increased their relevant interest in the Company to ~4.3% via further purchasing on-market.
At the indicative proposal price, if you participated in the 2-cent raise in February 2019, your return on investment would be 125 times!
Bridge Street Capital Partners was featured in the Western Australian, link below, where Dr. Baker was quoted on his research and the history behind our involvement in Liontown.
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