Bell Potter Securities is lead manager to the issue, which is pricing shares at 76c each, a 10.1% discount to Friday's close.

A bookbuild is underway and due to close tomorrow.

Liontown shares hit a new high of more than 90c last month and at Friday's closing price of 84.5c, the company has a market value of $1.53 billion.

The stock is up 576% over the past 12 months.

The company had $15.2 million in cash at the end of March.

About $14 million of the placement proceeds will be used to complete the definitive feasibility study, front-end engineering design, heritage studies and downstream studies for the Kathleen Valley lithium project in Western Australia.

A further $8 million will be used to order long-lead items and start early works.

Kathleen Valley has a large resource of 156 million tonnes at 1.4% lithium oxide and 130 parts per million tantalum, which is expected to underpin a 40-year mine life.

The DFS is due in the December quarter.

The remainder of the funds will be used to further advance Kathleen Valley and the Buldania lithium project, generative exploration work, corporate costs and offer costs.

Last month, Liontown announced plans to demerge its early stage Moora and Koojan gold-copper-PGE-nickel projects into a separate vehicle via an in-specie distribution.

It is expected Liontown shareholders will hold 70-80% of the new company, which will target an ASX listing in the December quarter.

New shares issued in the placement will include entitlement to the proposed demerger.

Liontown chairman Tim Goyder is Liontown's largest shareholder with 18%.

Bell Potter has a speculative buy rating and 61c price target for Liontown.