Gina Rinehart’s Liontown stake balloons as share raid continues

Billionaire Gina Rinehart is continuing her raid on lithium miner Liontown Resources’ stock, dethroning its chair as the largest shareholder and becoming a critical player in Albemarle’s looming takeover.

On Friday, Rinehart’s company Hancock Prospecting confirmed it had acquired further shares in the lithium prospector, taking its stake from 14.67 per cent to 16.7 per cent.

Gina Rinehart was shopping for Liontown shares again on Friday.Credit: Trevor Collens

The mining magnate has embarked on an aggressive share-buying spree over the past month, dropping almost $1 billion in a series of transactions that have seen her stake eclipse that of chair Tim Goyder.

In doing so, Australia’s richest person has positioned herself as a critical player in the planned $6.6 billion takeover by the US chemicals giant.

Hancock’s decision to lift its “strategic stake” comes as Albemarle enters the final days of its due diligence ahead of a vote on its takeover offer, which includes running the ruler over Liontown’s lucrative early-stage Goldfields lithium project.

It also coincides with news the cost of its flagship project, located 680 kilometres north-east of Perth, had grown by $56 million to $951 million, as had the mine operation costs.

The hard-rock lithium deposit has been hailed among the most promising in the country, with Liontown having already locked in supply deals with the likes of Ford and Tesla.

But Hancock Prospecting has persistently stressed the project carries “significant execution, operational ramp-up and market risks” while talking up its own credentials and its capacity to offer guidance.

In a statement, the company said it welcomed the opportunity to participate in the Kathleen Valley project as a shareholder, and have an influence on the prospector’s direction.

While the company indicated it did not intend to put forward any director nominations at Liontown’s next Annual General Meeting, it said it remained “open” to nominating directors to the board in the future, flagging the possibility its stake may continue to balloon upwards of 19 per cent.

Liontown’s board had voiced its intention to unanimously recommend shareholders vote in favour of the chemicals giant’s takeover bid, provided it did not receive a superior proposal.

However, WAtoday understands Hancock’s shareholding could be enough to block Albemarle’s scheme of arrangement.

The bid was the third levelled by Albemarle and comes as electric vehicle manufacturers continue to wrangle for security of the raw material.

Liontown’s shares are still sitting around the $3-per-share mark, giving the company a market capitalisation of $6.62 billion.

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