Australian lithium miner Core Lithium (ASX: CXO) has completed a $100m fully underwritten institutional placement, announced 16 August 2023.
The placement was well supported by existing shareholders and new domestic and offshore institutional investors, with 250 million new shares being issued under the placement at a fixed price of A$0.40 per new share.
The proceeds of the placement and share purchase plan, which aims to raise up to $20 million and opens on 28 August, will allow Core to deliver on its near-term growth projects which include progressing BP33 early works, several plant optimisation initiatives aimed at increasing recoveries, targeted exploration programs and study works to better understand key growth projects.
Importantly, the equity raising will preserve balance sheet flexibility during Finniss ramp-up.
Core Lithium CEO Gareth Manderson said:
“We are pleased with the support demonstrated by new and existing institutional investors in the Placement, and we thank our long-term shareholders for their continued support. Importantly, the proceeds provide us with the opportunity to continue progressing our strategic priorities including optimising recoveries and delivering on our growth objectives, including BP33 early works to maintain the FID timeline (First Quarter CY 2024).
“In addition, we are excited with our planned exploration program over the next 12 months which aims to deliver mine life extensions and further resource definition at Finniss.”
Macquarie Capital (Australia) Limited and Canaccord Genuity (Australia) Limited acted as Joint Lead Managers, Underwriters & Joint Bookrunners to the Placement.
