Advanced Northern Territory lithium developer Core Lithium Ltd (ASX: CXO) is pleased to announce that it has received firm commitments for A$91 million via an institutional placement (Placement) of 293 million new fully paid ordinary shares (New Shares).
- Successful completion of fully underwritten placement to raise A$91 million at A$0.31 per New Share.
- Non-underwritten Share Purchase Plan to be offered to eligible investors to raise up to a further A$15 million.
- Together with the A$34 million Ganfeng equity investment, Stage 1 project development of the Finniss Lithium Project now fully funded, with Core on track for first production in late 2022.
Demand for the Placement well exceeded the New Shares to be issued, with strong support from new and existing high-quality domestic and global institutional investors.
The A$91 million Placement, together with the Ganfeng equity investment of A$34 million at A$0.338 per share (see ASX announcement released 9 August 2021) and non-underwritten share purchase plan to existing eligible shareholders to raise up to A$15 million (together, the Equity Raising) provide certainty of funding to meet the previously stated timeline of construction commencement at the Finniss Lithium Project (Finniss or the Project) in 2H 2021.
Funds raised from the Equity Raising will be principally used for:
- Upfront capital costs at Finniss, including plant construction costs, Grants open pit pre-strip costs and other mine establishment costs;
- Environmental bond payments to the NT Government;
- Drilling to accelerate Reserve and Resource Growth; and
- Working capital.
Core’s Managing Director, Mr Stephen Biggins, commented:
“We are very pleased with the overwhelming support received in the Placement in this transformational moment for Core. We thank our existing shareholders for their ongoing support and welcome a number of new, high-quality institutional investors to our register, supporting our journey towards being Australia’s next lithium producer. Together with the Ganfeng equity investment and the share purchase plan, we are now fully funded to complete Stage 1 development of Finniss and have the financial flexibility to assess future growth initiatives. With the support of our high-quality shareholder base, we look forward to executing on our plan to commence anticipated first production in late 2022.”