The Liontown Resources Limited (ASX: LTR) share price has returned from a brief trading pause and is shooting higher.
In afternoon trade, the lithium miner's shares are up almost 7% to $1.19.
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Why is the Liontown share price racing higher?
Investors have been bidding the Liontown share price higher after the company achieved another important milestone.
According to the release, the company has appointed Lycopodium Limited (ASX: LYL) to complete the engineering, procurement, construction management (EPCM) and commissioning services for the Kathleen Valley Lithium Project in Western Australia.
The EPCM contract is valued at approximately $35 million based on the agreed scope. Pleasingly, despite recent cost inflation, it is on terms consistent with the assumptions in the company's definitive feasibility study. It also includes fixed and reimbursable portions to ensure greater cost certainty for project engineering.
Lycopodium is a familiar face at Liontown. The release notes that it has been involved with the project since 2018 and has substantial global mineral processing and project delivery experience which it will leverage to provide Liontown with an integrated engineering, construction and commissioning solution for delivery of the project.
'Another significant milestone'
Liontown's managing director and CEO, Tony Ottaviano, notes that this is another important milestone for the company. He said:
Awarding the EPCM Contract is another significant milestone for Liontown and the development of Kathleen Valley. We are delighted to have appointed a company of Lycopodium's stature and capability, building on their long-standing involvement with the Kathleen Valley Project in overseeing testwork, piloting and design since 2018.
We believe Lycopodium is an ideal engineering and construction partner, with substantial experience in mineral processing plant design and construction expertise, making it ideally placed to deliver the Project.
