Core to raise $2m via SPP

Core to raise $2m via SPP

Advanced Australian lithium developer Core Lithium (ASX: CXO) has announced a share purchase plan to raise $2 million, priced at 4 cents a share, with the proceeds to be used to fund a range of development initiatives at its Finniss lithium project in the Northern Territory. The raising has been underwritten up to $1 million by sophisticated and institutional investors.


Advanced Australian lithium developer, Core Lithium Ltd (Core or Company) (ASX:CXO) is pleased to offer all Core shareholders the ability to participate in the Company’s growth plans via a Share Purchase Plan alongside the $8.1 Million Strategic Investment by Lithium Royalty Corporation announced today.

HIGHLIGHTS

• Along with the $8.1 Million royalty investment by Lithium Royalty Corporation (LRC), Core invites shareholders to participate in several near-term milestones and growth strategy ahead of the development of the Finniss Lithium Project in 2019

• Share Purchase Plan (SPP) to raise up to $2.0 million offered to Shareholders at an issue price of 4.0 cents per share

• SPP partially underwritten to $1.0 million by sophisticated and institutional investors

• Board currently pursuing all options to maximise shareholder value ahead of any decision to mine, including further investment in near term Mineral Resource conversion and focused exploration to improve the production profile further and extend the mine life

• Strong news flow expected over the coming weeks and months:

o Mineral Resource and Exploration Drilling at Finniss
o Rapid Mineral Resource Growth
o Ore Reserve and Mine Life Growth
o Binding Concentrate Offtake
o Fine Lithium Offtake
o Full Project Approval
o Project Financing

Funds received from the SPP and $8.1 Million Strategic Investment will be used to progress the Company’s flagship Finniss Lithium Project development plans, near term Mineral Resource growth and conversion and focused exploration to improve the production profile further and extend the mine life within the broader Finniss Lithium Project area and for working capital purposes.

Core is also actively working on several material goals that once achieved, are likely to have a significant impact on the project. Core will update shareholders in due course as significant progress on these goals is achieved, including:

- Expanding lithium Mineral Resources, Ore Reserves, and mine-life at Finniss
- NT Govt regulatory approval to achieve full approval for mine and plant construction
- Binding Offtake along with Customer Finance support for remaining lithium concentrate
- Fine lithium offtake agreements
- Project Financing for the Project, which may include customer, debt, equity, royalty and mezzanine finance structures some of which non-binding term sheets are in place

Core’s Managing Director, Stephen Biggins, commented: “We are pleased to offer Core shareholders the opportunity to participate in Core’s partially underwritten SPP and contribute towards the Company’s plans to transition into a lithium developer this year.

“The recent $8.1M Strategic Investment and DFS highlight the profitability and rapid payback of the Project. We now have an advanced, near development ready lithium project which we expect to generate attractive returns for our shareholders.

“The Board remains committed to overseeing a low-risk, measured transition to lithium producer at the Finniss Lithium Project to ensure long-term shareholder value. As such, the Company is pursuing several well-funded, near-term activities with the potential to improve the Project’s returns further and continue to de-risk the decision to mine.

“These activities include further investment in Mineral Resource conversion and advanced exploration opportunities across Core’s 500km2 tenement package. The global Finniss Project Mineral Resource has increased by over 500% from the start of 2018 to almost 10Mt, and we expect to continue to increase that rapidly with the further drilling commencing next month.”

Director resigns from Mineral Resources board

Director resigns from Mineral Resources board

Core Lithium in $8.1m royalty deal

Core Lithium in $8.1m royalty deal