Construction-ready lithium developer Core Lithium Ltd (ASX: CXO) announces the results of the Company’s Share Purchase Plan (SPP), which closed on 2 September 2021. The SPP complemented the Company’s recent placement to sophisticated and institutional investors to raise $91 million (Placement).
The Company received subscriptions in excess of $43 million for the SPP, targeting $15 million. Due to the significant demand, Core has elected to increase the amount raised to $25 million.
The proceeds of the SPP and Placement will be used for development and construction of the Finniss Lithium Project, with the additional SPP funds accelerating assessment of acquisition and exploration opportunities and expanded resource drilling on high priority pegmatite targets and lithium projects and for working capital.
SPP applications will all be scaled back, in accordance with the terms of the SPP offer document. Core will issue approximately 81 million new fully paid ordinary shares, which will rank equally with existing shares from their date of issue, to satisfy the SPP allocations. The new shares will be issued at $0.31 each, which is the same price offered in the Placement, and are expected to be allotted on 9 September 2021.
SPP applicants are reminded to update their EFT details to allow for electronic refund of SPP monies due to the scale back process.
The Core Lithium board would like to thank its shareholders for their ongoing support and endorsement of the Company’s business model as the Company moves towards a Final Investment Decision on the Finniss Lithium Project.
