Lithium company Liontown Resources has secured a A$550-million debt facility agreement, positioning the Kathleen Valley lithium project for a seamless journey through to first production and subsequent ramp-up to the three-million-tonne-a-year base case.

The debt facility would enable Kathleen Valley mine, in Western Australia, to achieve first production by mid-year, the ASX-listed junior said on Wednesday.

Liontown found itself in a precarious position when an anticipated takeover by US miner Albemarle collapsed in October.

The company took a further hit in January when projected prices for spodumene led to the termination of a A$760-million agreement, prompting a re-evaluation of the project.

“Having this funding in place provides strong endorsement for our project and a platform of financial certainty from which to move forward,” commented MD and CEO Tony Ottaviano.

The new debt facility not only ensures financial stability, but also allows for time to complete the review of Kathleen Valley’s proposed four-million-tonne-a-year expansion.

The proceeds drawn from the facility will be used to refinance Liontown’s existing Ford debt, fund construction and ramp-up at Kathleen Valley and provide working capital and liquidity.

The syndicate of lenders comprises Commonwealth Bank of Australia, National Australia Bank Limited, Societe Generale, Export Finance Australia and the Clean Energy Finance Corporation.