Core Lithium Ltd (ASX:CXO) has raised $100 million through a strongly supported placement to accelerate growth initiatives at the flagship Finniss Lithium Project, near Darwin in the Northern Territory of Australia.
The placement of about 97.1 million new shares received significant demand from high-quality domestic and international offshore institutions, which the miner said signalled confidence in the Finniss Project and provided a strong endorsement of the company's accelerated growth strategy
Core said its balance sheet was now stronger which would allow it to fast-track exploration programs, expedite capital development initiatives and pursue further organic and inorganic growth opportunities.
Use of funds
Money raised from the placement will be used for:
- Accelerated resource definition, extensional and exploration drilling.
- Advancing development of the proposed BP33 underground mine by investment in early works, previously funded out of cash flows.
- Introducing a night shift to facilitate an accelerated commissioning of the Finniss concentrator.
- Enhancing Core’s project management and corporate development capabilities.
- Working capital during completion of construction and ramp-up.
The new shares will be issued at $1.03 each, which is a 6.8% discount to the last closing price on September 29, 2022; and a 13.0% discount to the five-day volume weighted average price of $1.184.
Settlement of the new shares is expected to occur on October 7, 2022, with allotment scheduled for the following Monday.
About Finniss
Core owns 100% of the Finniss Project, which hosts JORC 2012-compliant mineral resources of 15 million tonnes at 1.3% lithium oxide (Li20).
The flagship project lies within one of the most prospective areas for lithium in the NT - the Bynoe Pegmatite Field - and covers more than 500 square kilometres of granted tenements.
The project has excellent infrastructure, being close to grid power, gas and rail and only an 88-kilometre trucking distance by sealed road to Darwin Port, Australia’s nearest port to Asia.
Core intends for the Finniss project to provide the globe with high-grade and high-quality lithium, suitable for lithium batteries used to power electric vehicles and renewable energy storage.