Emerging lithium producer Core Exploration (ASX: CXO) has received firm commitments for a $7 million capital raising, with the funds to be used for ongoing work at its prospective Finniss Project near Darwin. The company raised $5 million through the placement of 95.3 million shares at 5.3 cents each, and has launched a $2 million share purchase plan at the same price. Core will be fully funded to complete a pre-feasibility study and subsequent feasibility study for Finniss.
- Oversubscribed Placement raises $5 million
- Core will be fully funded to complete the PFS and FS for its Finniss Lithium Project, near Darwin in the Northern Territory
- In parallel with feasibility and other pre-development activities, Core will maintain aggressive multi-rig, exploration and resource drilling programs aimed at growing the mining inventory to support a long-life lithium mining project at the Finniss Project
- Share Purchase Plan to raise up to $2 million to follow, to allow current Core shareholders to participate at the same price as the Placement
- Strong news flow expected over coming weeks and months:
- Resource upgrade at Grants imminent
- Maiden Resource estimate for BP33 in mid Q2 2018
- PFS for development of Grants deposit in late Q2 2018
- Re-commencement of RC and Diamond drilling at several priority targets in late Q2 2018
Core Exploration Limited (Core or Company) (ASX:CXO) is pleased to announce that it has received firm commitments to place approximately 95.3 million new shares at an issue price of A$0.053 per share to raise approximately $5 million, excluding costs (Placement).
The Placement was oversubscribed, with strong support received from professional Australian and international institutional investors, as well as a number of existing shareholders. Eligible existing shareholders will be provided an opportunity to participate in the capital raising via a share purchase plan (SPP), as described in this release.
Funds received from the Placement and SPP will be used to progress the Company’s flagship Finniss Lithium Project towards development, including resource infill drilling at the Grants deposit and BP33 prospect(with an associated upgrade to the Grants Resource and a maiden Mineral Resource at BP33), completion of a preliminary feasibility study (PFS) and feasibility study (FS) for the development of a spodumene concentrate and DSO operation, initially focused on the development at the Grants deposit, as well as an aggressive exploration and resource expansion drilling programs on high grade prospects within the broader Finniss Lithium Project area, and for working capital purposes.
Hartleys Limited is Lead Broker to the Placement.
Core’s Managing Director, Stephen Biggins, commented:
“We are delighted to have received such strong support for the placement and I would like to welcome the participants in the placement as Core shareholders at a very exciting phase as Core plans to rapidly transition into development mode in early 2019.
Core’s Finniss Lithium Project is on a pathway to production, and the support for this capital raising is not only a strong validation for the project, but will allow us to continue to aggressively progress its development as well as maintain our strong commitment to growing our mining inventory through nearby discoveries. Core’s exploration and drilling has proved highly successful to date as evidenced by the discovery of several additional prospects that we expect may lead to further Resources in time, including BP33, Sandras, Lees, Hang Gong and Carlton prospects. All of these new prospects host high grade spodumene mineralisation similar to Grants.
This is an exciting period for the company as we are nearing completion of the PFS for an initial development at Grants, are awaiting an imminent resource upgrade at Grants and a maiden Resource at BP33, and we eagerly await kicking off our 2018 regional exploration drilling campaign on a number of high grade prospects once the wet season comes to an end in the coming weeks.”