Core Lithium receives FIRB approval for royalty deal, capital raising

Core Lithium receives FIRB approval for royalty deal, capital raising

Advanced Australian lithium developer Core Lithium (ASX: CXO) has confirmed it has received notification from Lithium Royalty Corporation that unconditional FIRB approval for its $8.12 million investment in the Company has been granted.


Advanced Australian lithium developer Core Lithium (ASX: CXO) has confirmed it has received notification from Lithium Royalty Corporation that unconditional FIRB approval for its $8.12 million investment in the Company has been granted.

HIGHLIGHTS

·       Lithium Royalty Corporation (LRC) received unconditional FIRB approval for its investment of A$8.125 million for a 2.5% royalty over production from the Finniss Lithium Project

·       $0.35 million Placement Funds received from SPP Underwriter

·       $11.8 million of funds raised from Share Purchase Plan (SPP), LRC Royalty Transaction and Strategic Placement positions the Company to advance towards becoming the next Australian lithium producer

Core is pleased to to confirm the successful outcome of the following key funding initiatives:

·       Notification received from LRC that it has obtained written notice under the Foreign Acquisitions and Takeovers Act 1975 (Cth) on behalf of the Treasurer of the Commonwealth of Australia that the Commonwealth Government does not object to the transaction and has not imposed any conditions upon LRC regarding its investment of $8.125 million for a 2.5% royalty over production from the Finniss Lithium Project. FIRB approval was the remaining condition precedent to the transaction which is now complete.

·       Receipt of $0.35 million from the underwriters of the oversubscribed Share Purchase Plan (SPP). A total of $3.3 million was raised via the SPP which was oversubscribed by $1.3 million.

Funds raised totalling $11.8 million from the oversubscribed SPP, Share Placement and LRC Royalty transactions are now being used to progress the Finniss Lithium Project towards development, near term resource growth and conversion and exploration focussed on improving the production profile further, extend the mine life within the broader Finniss Lithium Project area and for working capital purposes.

Core’s Managing Director, Stephen Biggins, commented: “Strong support shown by existing and new investors in Core Lithium illustrates the current value and potential upside of the Finniss Lithium Project.

"This capital strengthens our balance sheet and enables the Company to invest significantly to further increase profitability and rapid payback of the near development ready, Finniss Lithium Project, which we expect to generate attractive returns for our shareholders.”

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