Liontown Resources Limited (ASX:LTR), hereinafter referred to as Liontown or the Company, announces the successful execution of an Engineering, Procurement, and Construction (EPC) contract with GR Engineering Services Limited (GRES). This contract pertains to the development and commissioning of a crucial infrastructure component: the paste plant facility (Paste Plant), essential for facilitating underground mining operations at Kathleen Valley.

The Paste Plant, comprising two trains capable of generating up to 160m3 of paste per hour, stands as a pivotal asset in Liontown's strategic blueprint. Designed to accommodate potential future expansions of mining operations up to 4 million tonnes per annum (Mtpa), this facility embodies versatility and scalability. Cemented paste fill delivery emerges as a cornerstone process within the underground mining cycle at Kathleen Valley. By optimizing ore recovery rates and planned production levels, the Paste Plant contributes significantly to operational efficiency. Moreover, its implementation mitigates the necessity for expansive surface tailings dams, thereby aligning with sustainable environmental practices.

Furthermore, the Paste Plant's design integrates features facilitating dry stacking and water recovery mechanisms, underscoring Liontown's commitment to resource conservation and eco-friendly operational practices. This holistic approach not only enhances operational efficiency but also underscores Liontown's dedication to environmental stewardship.

The decision to expedite the deployment of the second train within the EPC framework represents a strategic maneuver aimed at preemptively mitigating operational risks and capitalizing on cost synergies. This proactive stance underscores Liontown's prudent management philosophy, positioning the Company for sustained growth and operational resilience.

Valued at approximately $71 million, the EPC contract aligns seamlessly with Liontown's strategic roadmap, constituting a crucial component of the planned growth capital expenditure post-first production phase. Funding for this initiative is envisaged through the recently unveiled A$550 million financing facility, underscoring Liontown's robust financial position and strategic foresight.

GRES, entrusted with the execution of the EPC contract, brings to the table a wealth of experience and expertise garnered from previous engagements in Western Australia's mining landscape. Their track record of delivering high-quality paste plant facilities underscores their capability to meet Liontown's stringent standards and project requirements. The commencement of preliminary site works underscores GRES's commitment to ensuring timely project delivery and operational readiness.

In response to the EPC contract award, Liontown's Managing Director and CEO, Tony Ottaviano, expressed satisfaction, highlighting the pivotal role of the Paste Plant in enhancing operational efficiency and de-risking underground production rates at Kathleen Valley. Ottaviano's endorsement of GRES's expertise and proactive approach underscores the collaborative spirit underpinning this strategic partnership.