Core Lithium has successfully completed its $100 million fully underwritten institutional placement that it announced yesterday.
The proceeds from the $100 million fully underwritten institutional placement and the $20 million share purchase plan announced yesterday are expected to help Core Lithium progress its near-term growth projects during the Finniss lithium project’s ramp-up, preserve balance sheet flexibility, perform several plant optimisation initiatives aimed at increasing recoveries, pursue a targeted exploration program and complete study works to better understand key growth projects.
It will also provide the company with the ability to progress the early works of its BP33 lithium project in the Northern Territory, which is the second proposed mine at the Finniss lithium operation. Core Lithium started early works at the BP33 lithium project in early August.
$45–$50 million is expected to be allocated to BP33’s early works, as well as $20–25 million towards 2024 financial year (FY24) plant optimisation works and Finniss sustaining capital, $35–$40 million towards FY24 exploration and study expenditure, and allocating up to $5 million towards general corporate purposes and working capital.
Core Lithium said the completed placement was supported by existing shareholders and new domestic and offshore institutional investors.
As a result, 250 million new shares will be issued under the placement at the fixed price of $0.40 per new share.
Prior to its announcement of the placement, Core Lithium halted its trading on the Australian Securities Exchange (ASX). Its trading has since resumed.
The placement shares are expected to settle on August 21, and to be issued and commence trading on the ASX on a normal basis on August 22.
Core Lithium chief executive officer Gareth Manderson thanked the company’s long-term shareholders for their continued support, as well as the new and existing institutional investors.
“Importantly, the proceeds provide us with the opportunity to continue progressing our strategic priorities including optimising recoveries and delivering on our growth objectives, including BP33 early works to maintain the final investment decision (FID) timeline,” Manderson said.
“In addition, we are excited with our planned exploration program over the next 12 months which aims to deliver mine life extensions and further resource definition at Finniss.”