What's Happening?
Core Lithium has announced a successful A$50m share placement to fund the development of its Finniss Lithium Project. The placement involves issuing 476.2 million new shares at A$0.105 each, with strong support from new investors. The funds will be used for ordering long-lead items, resuming development at the BP33 boxcut and decline, and operational readiness. The company plans to complement this with a share purchase plan for Australian and New Zealand shareholders, aiming to raise an additional A$10m. Operations at the Finniss project were halted in January 2024 due to a significant decline in spodumene concentrate prices.
Why It's Important?
The successful share placement reflects investor confidence in Core Lithium's strategic direction and the potential of the Finniss Lithium Project. The funding will enable the company to advance critical early works and operational readiness, positioning it for a positive final investment decision. This development is significant for the lithium industry, as it addresses supply chain challenges and supports the growing demand for lithium in battery production and renewable energy technologies.
What's Next?
Core Lithium plans to proceed with the first tranche of the placement, issuing approximately 278.1 million new shares to raise around A$29.2m, with settlement expected on September 3, 2025. The second tranche, subject to shareholder approval, will issue around 198.1 million new shares to raise approximately A$20.8m. The company retains discretion over the share purchase plan, which could result in raising more or less than the targeted A$10m, depending on oversubscriptions or scaled-back applications.
