PERTH (miningweekly.com) – Lithium developer Core Lithium on Friday announced a A$100-million through an institutional placement to fund further resource expansion at the Finniss lithium project, in the Northern Territory.
The fully underwritten institutional placement will consist of 97.1-million shares, priced at A$1.03 each, and will be placed under the company’s existing placement capacity.
The issue price represents a 6.8% discount to Core’s last closing price on September 29, and a 13% discount to its five-day volume weighted average share price.
“The placement enables Core to pursue several new growth initiatives. We will be well-funded for a larger exploration campaign on our prospective land holding,” said CEO Gareth Manderson.
“Recent exploration success at BP33, Core’s proposed second lithium mine, supports the deployment of growth capital and project development, enabling Core to capitalise on the current strength in lithium prices. We are looking forward to delivering first production of lithium concentrate from Finniss in the first half of 2023 and thank our loyal shareholders for their continued support.”
The placement would also allow Core to maintain a strengthened balance sheet during the construction and ramp-up phases of the Finniss project, and provides the company with increased financial flexibility to assess a range of options for future growth.
Core remains on schedule for first lithium concentrates at Finniss by the first half of 2023.
The Stage 1 Finniss project, comprising an openpit operation and underground operation, would requires an initial capital investment of A$89-million to support annual lithium production of 175 000 t/y from a one-million tonne a year plant.