Rinehart rises as key player in Liontown, Albemarle deal

Hancock Prospecting has crept up the ranks of Liontown Resources' share register to own 19.9 per cent, making the mining magnate a potential kingmaker in Albemarle's proposed acquisition. 

Gina Rinehart's private company put out a statement on Wednesday afternoon confirming it had hit its targeted stake in lithium developer, Liontown. 

"Hancock now looks forward to having a prominent influence on Liontown’s future, as its largest shareholder," the latest update read. 

A disclosure notice to the ASX shows Hancock now has more than 438.2 million shares in Liontown after buying up another parcel of shares for $101.7 million. 

With close to a 20 per cent stake, Hancock would be a key voter if a transaction between Albemarle and Liontown were to proceed to a scheme of arrangement. 

Mrs Rinehart overtook Liontown's chairman Tim Goyder as the company's largest shareholder last week. 

Albemarle is believed to be coming close to the end of its due diligence on Liontown and the proposed transaction on the table is non-binding, subject to the US lithium giant completing its review of the target. 

There has been speculation that Hancock could launch its own takeover proposal for Liontown, however the private company has maintained throughout communications regarding its on-market purchases of Liontown shares that the stake is strategic. 

Hancock and its associated mining entities have also historically been known to engage partners for new projects. 

Should Hancock increase its stake any further, it would be required to launch a formal takeover offer. 

Both Liontown and Albemarle's camps have not made public comment on the Hancock transactions. 

Albemarle proposed to acquire all shares in Liontown for $3.00 per share in cash in an offer it said in September would be best and final.

The proposal prices Liontown - which is building new lithium project Kathleen Valley in WA's Goldfields - at about $6.6 billion.