PERTH (miningweekly.com) – ASX-listed Core Lithium will raise A$40-million in a share placement to global institutional investors to help advance the development of its Finniss lithium project, in the Northern Territory.
The company on Thursday reported that it had received firm commitments for the placement of 160-million new shares to institutional investors, at a price of 25c each, with the placement to be completed under the company’s existing placement capacity.
The placement price represented a 4% premium to Core’s 20-day volume weighted average share price.
For every two new placement shares subscribed for, Core would issue one unlisted option, which will have an exercise price of 45c each and a two-year expiry.
“We are very pleased with the overwhelming global support received for our plans to develop the Finniss lithium project,” said Core MD Stephen Biggins on Thursday.
“This has transferred directly into institutional demand for the placement, which was very well supported, and Core welcomes the addition of some of the world’s most respected funds as shareholders.
“Since the end of 2020, the global lithium and greater renewable technology sectors have shown stark improvements and we continue to monitor these industry changes closely, with a view to making key decisions for Finniss at the right time.”
A previously completed prefeasibility study into the Finniss project estimated a pre-production capital requirement of A$53.5-million to develop a one-million-tonne-a-year operation producing 225 000 t/y of lithium concentrate.