Emerging lithium producer Core Lithium (ASX: CXO) has raised $3 million from investors to fund an accelerated program of resource drilling at the Carlton, Hang Gong and Lees-Booth Link prospects, completion of a definitive feasibility study for the Finniss project, and for general working capital. The raising was done through the placement of 60 million shares at 5 cents each, and was supported by offtake partners Yahua and Ruifu.
Placement raises $3 million to accelerate resource expansion and expanded scope of the DFS
Includes $1.5 million cornerstone commitments from Yahua and Ruifu
Expanded DFS now targeting for delivery in late Q1 2019
Timetable unchanged for Finniss Lithium Project construction targeting mid2019
Emerging Australian lithium developer, Core Lithium Ltd (ASX:CXO) (“Core” or the “Company”), is pleased to announce that it has received commitments to place approximately 60 million new shares at an issue price of A$0.05 per share to raise approximately $3 million, excluding costs (“Placement”).
The Placement was led by the strong support from Core’s binding offtake partner Yahua and non-binding offtake partner Ruifu, being two of China’s largest lithium producers, who have committed to $1.5M of new equity to accelerate resource drilling programs of the recently discovered prospects and delivery of the expanded scope of the Definitive Feasibility Study (“Cornerstone Commitments”).
The balance of the Placement was strongly supported by a number of sophisticated and professional investors, as well as a number of existing shareholders.
Funds Received from the Placement will be used to progress Core’s Finniss Lithium Project towards development, including completion of the Definitive Feasibility Study (DFS), an accelerated programme of Resource drilling at the Carlton, Hang Gong and Lees-Booth Link prospects, and for working capital.
The funds committed by parties associated with Ruifu (“Ruifu”) in this Placement are unrelated to the $3 million commitment previously provided by Ruifu under the non-binding Term Sheet in respect of the US$35m pre-payment and concentrate offtake and associated placement for approximately $3 million announced on 30 July 2018. Both Ruifu and Core continue to work diligently towards execution of binding agreements, with the expectation of completion in Q1 2019.
Of the $500,000 commitment from Yahua to the Placement, $250,000 will settle without any approvals required, however Yahua will require Chinese regulatory approvals to settle on the balance of their commitment. This regulatory approval is anticipated to be received by around 15 January 2019.