Core Lithium (ASX:CXO) raises $100m to fund Finniss, completes first spodumene DSO sale

• Core Lithium (CXO) is set to raise $100 million through a placement to fund work at its Finniss lithium project in the Northern Territory
• This will include exploration drilling, advancing the development of the proposed BP33 underground mine, introducing a night shift, and project management and corporate development activities
• The company will issue 97.1 million new shares at $1.03 to raise the funds, representing a 13-per-cent discount to its five-day volume weighted average price (VWAP)
• Meanwhile, the company has officially completed its first sale of spodumene direct shipping ore (DSO) product from the Finiss project
• Shares in Core Lithium are down 7.01 per cent to $1.03 at 11:34 am AEST

Core Lithium (CXO) has raised $100 million through a share placement to fund work at its Finniss lithium project in the Northern Territory.

The planned work will include further exploration drilling, advancing the development of the proposed BP33 underground mine, introducing a night shift, and project management and corporate development activities. Some of the funds will also go towards general working capital.

The company will issue 97.1 million new shares at $1.03 to raise the funds, representing a 13-per-cent discount to its five-day volume weighted average price (VWAP).

Core said the placement was well-supported by new and existing high-quality domestic and global institutional investors.

It believes this support shows a strong endorsement of its accelerated growth strategy for the Finniss project.

The new shares will be issued on Friday and will begin trading on the ASX on October 10.

Meanwhile, Core today announced it had officially completed the first sale of spodumene direct shipping ore (DSO) product from the Finiss project.

The company sold a cargo of 15,000 dry metric tonnes (dmt) of spodumene DSO, with an average grade of 1.4 per cent lithium oxide, for US$951 (A$1480) per dmt.

“The completion of the spodumene DSO tender is an excellent result for Core and indicates the strong demand for lithium,” Core CEO Gareth Manderson said.

The company said the sale would enable it to commission all logistics processes and procedures in place between the Finniss mine site and the Darwin Port ahead of planned spodumene production during the first half of 2023.

Shares in Core Lithium were down 7.01 per cent to $1.03 at 11:34 am AEST.