Finance, Lithium, News

Core Lithium raises $11.4 million 

Pilbara Minerals downstream

Australian miner Core Lithium has announced the results of a share purchase plan (SPP) initiated on August 17, raising at total of $11.4 million. 

The SPP offered the purchase of additional shares at $0.40 per share without the ordinarily associated costs to eligible shareholders with the aim of raising $20 million. 

The company announced the completion of its $100 million fully underwritten institutional placement a day after the sale went live on August 29. 

Core Lithium will now issue 28,418,750 new fully paid ordinary shares, which will rank equally with existing fully paid ordinary shares in the company. 

The new shares under the SPP will be issued on September 22 2023 and are expected to trade from September 25.  

The company has weathered a rough quarter on the ASX with its share price falling from around $0.95 in July to roughly $0.38 in September. Core is hoping to use the cash raise to boost its operations.   

“The proceeds of the SPP and (the) placement will allow Core to deliver on its near-term growth projects during Finniss ramp-up while preserving balance sheet flexibility,” the company said. 

“Importantly, the SPP and placement will provide Core the ability to progress BP33 early works, perform several plant optimisation initiatives aimed at increasing recoveries, pursue a targeted exploration program and complete study works to better understand key growth projects.” 

The company’s Finniss mine delivered its maiden 5500-tonne spodumene shipment in April, with a second 13,100-tonne shipment following in early July. A third, 10,000-tonne parcel, shipped in late August. 

The second proposed mine at the Finniss operation, the BP33 lithium project, started early works in August, awarding the $45 million BP33 early works package to Northern Australia Civil in mid-August. 

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