Australia’s next lithium producer, Core Lithium Ltd (ASX: CXO) is conducting a fully underwritten institutional placement to raise A$100 million.
Given recent exploration success and favourable lithium pricing in the spot market, the company intends to pursue new and aggressive exploration programs designed to rapidly grow Ore Reserves and Mineral Resources through extensional and Resource definition drilling at the Finniss Lithium Project.
The Placement also enables Core to maintain a strengthened balance sheet during the construction and ramp-up phases and provides increased financial flexibility to assess a range of options for future growth. Development activities at Finniss are progressing well and Core remains on schedule to deliver first lithium concentrate production in the first half of 2023.
Funds raised from the Placement will be principally used for:
• Accelerated Resource definition, extensional and exploration drilling, with a budget of A$25 million planned for calendar year 2023;
• 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; and
• Working capital during completion of construction and ramp-up.
“The Placement enables Core to pursue several new growth initiatives. We will be well-funded for a larger exploration campaign on our prospective landholding,” CEO, Gareth Manderson, said.
“Recent exploration success at BP33, Core’s proposed second lithium mine, supports the deployment of growth capital and project development, enabling Core to capitalise on the current strength in lithium prices.
“We are looking forward to delivering first production of lithium concentrate from Finniss in the first half of 2023 and thank our loyal shareholders for their continued support.”
Canaccord Genuity (Australia) Limited is acting as Lead Manager, Underwriter and Bookrunner to the Placement. Core’s financial adviser is Azure Capital and its legal adviser is Allens.
For further information please visit: https://corelithium.com.au/
