PERTH (miningweekly.com) – Lithium developer Core Lithium will raise A$7-million through a share placement and share purchase plan (SPP) to progress the Finniss lithium project, in the Northern Territory.
The ASX-listed company will raise an initial A$5.5-million through the placement of 129.8-million shares, at a price of 4.25c each, under its existing placement capacity.
A further A$1.5-million will be raised during the SPP, which will also be priced at 4.25c a share.
“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,” said Core MD Stephen Biggins.
“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 Northern Territory.
“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.”
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.
Core is aiming to complete offtake arrangements and have the project construction ready in 2020, ahead of sourcing debt and equity to achieve financial close.