Shares in lithium developer Liontown Resources Ltd (ASX: LTR) are caged up today, currently in a company requested trading halt.
Before Liontown shares were put on ice just prior to the market open, they closed yesterday's session less than 1% up at $1.55.
The trading halt follows a company announcement yesterday advising it had awarded a key infrastructure contract at its Kathleen Valley Lithium Project in WA.
Let's take a closer look at how it's gone down for Liontown so far this week.
Imgae source: Getty Images
What's up with the Liontown share price today?
According to the ASX, Liontown requested that its securities be placed in a trading halt from the start of trading today.
The halt was granted in lieu of an announcement from Liontown regarding an "offtake arrangement", and is necessary "to ensure the company can manage its continuous disclosure obligations".
Liontown requested the pause in trading remain in place until the announcement has been made or the until the start of trading on Thursday, 13 January 2022.
The ASX awarded the company's request and, as such, the Liontown share price has been in limbo ever since, as investors patiently await the update.
Separately, shares in Liontown were largely agnostic to an announcement made by the company yesterday regarding its flagship Kathleen Valley Lithium Project.
Liontown advised it has awarded a key contract to Metso-Outotec (HEL: MOCORP) for the design, fabrication, and delivery of a Semi-Autogenous Grinding (SAG) Mill at the Kathleen Valley site.
The company says that Metso-Outotec is a "class-leading processing equipment supplier with multiple comparable mill installations in operation across the world".
According to the release, the contract has a value of approximately $10 million and is in accordance with definitive feasibility study (DFS) estimates.
Checking over the particulars, the agreement specifically covers "the design, fabrication and delivery of a 7.9m diameter and 4.4m effective grinding length 5.5MW SAG Mill. This is inclusive of all lining, lubrication, cooling, electrical and mechanical drive systems necessary for installation and commissioning".
The SAG Mill will accommodate base production of 2.5 million tonnes per annum (Mtpa) plus the planned expansion to 4Mtpa in year 6 of the Kathleen Valley's mine plan.
Liontown's Managing Director and CEO Tony Ottaviano said the SAG Mill contract "is the first of the long-lead items to be ordered and represents an important milestone for the Kathleen Valley Project".
As it stands, there has been no movement out of Liontown's camp regarding the offtake announcement and shares remain on ice until further notice.
Liontown share price snapshot
In the past 12 months, the Liontown share price has soared more than 311%, well outpacing the benchmark S&P/ASX 200 Index (ASX: XJO)'s return in that time.
However, things have cooled off in 2022 so far with shares falling more than 6% into the red this year after sliding 5% in the last month alone.
