Advanced Australian lithium developer Core Lithium (ASX: CXO) has received firm commitments for the placement of shares to raise $5.5 million before costs. The Company has extended the offer to all eligible Core shareholders to participate in a $1.5 million Share Purchase Plan (SPP) on the same terms as the placement.
Core has received firm commitments from institutional and sophisticated investors to complete a Placement of $5.5M.
Shareholders are invited to participate in a $1.5M Share Purchase Plan (SPP) on same terms as the Placement.
Capital Raising follows the recent signing of a non-binding Memorandum of Understanding (MOU) for offtake with Geneva-based Transamine.
The MOU relates to the potential supply of 50,000tpa of spodumene concentrate to Transamine from the Finniss Lithium Project over five years.
Updated mine plan for Finniss Lithium Project on expected increased Mineral Resources due in coming weeks.
Updated Feasibility Study on Finniss scheduled for completion towards the end of this quarter.
Core is on track to be construction ready post COVID-19.
Funds received from the $5.5 million Placement and $1.5 million SPP will be used to progress the Company’s flagship and wholly-owned Finniss Lithium Project, located just south of Darwin in the Northern Territory, where significant progress continues to be made in line with the Company’s strategy of being construction-ready post COVID-19.
A total of 129,808,860 shares will be issued at $0.0425 per share to raise $5.5 million under the Placement. Included in this amount is a commitment by non-executive director Malcolm McComas to subscribe for $61,557 (1,448,400 shares) of Placement shares which will be subject to shareholder approval.
Of the shares to be issued to Placement applicants, 78,993,681 shares will be issued under the Company’s 10% placement capacity under Listing Rule 7.1A and a further 49,366,779 shares will be issued under the Company’s 15% placement capacity under Listing Rule 7.1.
The SPP will be launched in recognition of the continued support of our existing shareholders. The issue price for the SPP will also be $0.0425 and detailed terms of the SPP will be provided in coming days.
Bell Potter Securities and Taylor Collison acted as joint lead managers to the Placement.
Core Lithium Managing Director Stephen Biggins said, “Core is pleased to welcome new shareholders to the business and we strongly appreciate the continued support of our existing shareholders.
“As such, we are inviting existing shareholders to participate in the current Capital Raising via an SPP on the same terms as the Placement.
“Together with the Placement, the funds raised from the SPP will enable the Company to complete its planned objectives at the Finniss Lithium Project, which we are excited to have construction-ready as COVID-19 restrictions lift in the second half of 2020.
“Core has key milestones in the near-future for Finniss, including resource extensions and a Feasibility Study update to increase mine-life.
“Importantly, Core must also continue to invest in engineering studies and environmental monitoring to continue on its pathway towards construction of the first lithium mine and processing facility in the NT.
“This capital raising will also fund drilling on the Finniss project later this year to continue unlocking the value of new resources and reserves, as well as upside potential to expand capacity of the project in the future.”