- Australian lithium developer Core Lithium (CXO) has received firm commitments from investors to raise $5.5 million in a placement
- Later, the company plans to bring in a further $1.5 million through a share purchase plan, bringing the total capital raised to $7 million
- The funds will be used for its flagship Finniss Lithium Project, which is located in the Northern Territory
- The capital raising follows the recent signing of a memorandum of understanding for its first European offtake with Transamine Trading
- The agreement is to supply 50,000 tonnes per annum of spodumene concentrate from Finniss
- An updated mine plan for Finnis is expected to increase the mineral resource and is due in the next few weeks
- Additionally, Core said its updated feasibility study on the project is scheduled to be completed by the end of this quarter
- However, Core is down 16.7 per cent on the market this morning, trading for five cents per share
Australian lithium developer Core Lithium (CXO) has received firm commitments from investors to raise $5.5 million in a placement.
The placement will issue around 129 million shares at 4.25 cents each. Additionally, shareholders will also be invited to participate in the company’s $1.5 million share purchase plan (SPP) on the same terms as the placement.
This brings the total capital Core is hoping to raise to $7 million.
The funds will be used for its flagship Finniss Lithium Project, which is located in the Northern Territory.
The capital raising follows the recent signing of a memorandum of understanding for its first European offtake with Transamine Trading. The agreement is to supply 50,000 tonnes per annum of spodumene concentrate from Finniss.
Managing Director Stephen Biggins is pleased with the support the placement received.
“Core is pleased to welcome new shareholders to the business and we strongly
appreciate the continued support of our existing shareholders,” he said.
The company also says it is on track to be construction-ready, after the pandemic.
“Together with the placement, the funds raised from the SPP will enable the
company to complete its planned objectives at the Finniss Lithium Project, which
we are excited to have construction-ready as COVID-19 restrictions lift in the second half of 2020,” Stephen explained.
“Core has key milestones in the near-future for Finniss, including resource extensions and a Feasibility Study update to increase mine-life,” he added.
Because COVID-19 has not impacted Core’s short and medium-term goals, the company has assured investors that excellent progress is being made on the updated feasibility study.
Mineral resource estimate upgrades for several deposits at Finniss are in the final stages and are expected to be finished in a few weeks.
“The updated mine plan will be used to update the feasibility study for the project,
with increased mine life expected to be attractive to offtake and financing partners,” the company said.
Core is down 16.7 per cent on the market this morning, trading for five cents per share at 10:35 am AEST.