What's Happening?
Core Lithium has announced a successful A$50 million share placement to fund the development of its Finniss Lithium Project. The company will issue 476.2 million new shares at A$0.105 each, representing a 12.5% discount on the last traded share price. The placement has received strong backing from new institutional investors in the Americas and Australia. The funds will be used for ordering long-lead items, resuming development at the BP33 boxcut and decline, and operational readiness. Additionally, Core Lithium plans to raise an extra A$10 million through a share purchase plan (SPP) for Australian and New Zealand shareholders. Operations at the Finniss project were previously halted due to a significant drop in spodumene concentrate prices.
Why It's Important?
This capital injection is crucial for Core Lithium as it aims to advance the Finniss Lithium Project towards a positive final investment decision. The funding will help the company cover pre-production capital requirements and operational readiness costs, ensuring progress in underground development. The strong investor support highlights confidence in the project's potential and the growing demand for lithium, a key component in electric vehicle batteries. This development could position Core Lithium as a significant player in the lithium market, potentially impacting the supply chain and pricing dynamics in the industry.
What's Next?
The first tranche of the placement is expected to settle on September 3, 2025, raising approximately A$29.2 million. The second tranche, contingent on shareholder approval, aims to raise an additional A$20.8 million. Core Lithium retains discretion over the SPP, which could result in raising more or less than the targeted A$10 million. The company will continue to focus on strategic funding solutions to meet remaining capital needs and deliver value to shareholders as it progresses with its growth and development objectives.
