Core Lithium intends to pursue new and aggressive exploration programs funded by $100 million raised from a fully underwritten institutional placement of 97.1 million new fully paid ordinary shares.
Given recent favourable lithium pricing in the spot market, the company aims to rapidly grow ore and mineral resources through extensional and resource definition drilling at its Finniss lithium project in the Northern Territory.
The placement also enables Core to maintain a strengthened balance sheet during the construction and ramp-up phases and provides increased financial flexibility to assess a range of options for future growth.
Development activities at Finniss are progressing well and Core remains on schedule to deliver first lithium concentrate production in the first half of 2023.
Specifically, funds raised from the placement will be principally used for:
- Accelerated resource definition, extensional and exploration drilling, with a budget of $25m planned for calendar year 2023
- Advancing development of the proposed BP33 underground mine by investment in early works, previously funded out of cash flows
- Introducing a night shift to facilitate an accelerated commissioning of the Finniss concentrator
- Enhancing Core’s project management and corporate development capabilities
- Working capital during completion of construction and ramp-up.