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Core Lithium (ASX:CXO) - Managing Director, Stephen Biggins
Managing Director, Stephen Biggins
Source: Cannings Purple
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  • Core Lithium (CXO) has raised $2.1 million from an oversubscribed share purchase plan, and has accordingly closed the offer a week early
  • The plan was originally aimed at raising $1.5 million and follows close on the heels of a successful $5.5 million placement
  • CXO is now fully funded to pursue its goal of being construction-ready at its Finniss lithium project when pandemic restrictions are fully lifted
  • Updated mine plans and feasibility studies are to be completed in coming weeks, and construction will begin as soon as possible
  • After an early surge, Core Lithium is trading grey today at 4.3 cents per share

Core Lithium (CXO) has raised $2.1 million from an oversubscribed share purchase plan (SPP), and has accordingly closed the offer a week early.

The plan was originally aimed at raising $1.5 million and was set to close on June 18.

A capital idea

The SPP follows close on the heels of a successful $5.5 million placement to institutional and sophisticated investors.

The heavily discounted shares were priced at 4.25 cents each, representing a 24.7 per cent reduction to the five-day volume-weighted average price at the time of the offers.

Core Lithium used its full 25 per cent placement capacity, so shareholders were quick to jump on the cut-price deal to avoid too much dilution.

Finish Finniss

Having raised a combined $7.6 million between the offers, CXO is now fully funded to pursue its goal of being construction-ready at its Finniss lithium project in the Northern Territory.

The company is expecting updated mine plans and feasibility studies to be completed in coming weeks, and will begin construction as soon as possible once COVID-19 pandemic restrictions allow for it.

Core Lithium Managing Director Stephen Biggins says all systems are go for the company’s flagship project.

“Core has key milestones in the near-future for Finniss, including resource extensions and a feasibility study update to increase mine-life,” Stephen said.

“Importantly, Core must also continue to invest in engineering studies and environmental monitoring to continue on its pathway towards construction of the first lithium mine and processing facility in the NT,” he continued.

“This capital raising will also fund drilling on the Finniss project later this year to continue unlocking the value of new resources and reserves, as well as upside potential to expand capacity of the project in the future,” Stephen added.

With the successful capital raising, and a five-year, 50,000 tonne per annum non-binding offtake agreement with Geneva-based Transamine already in place, Core Lithium will be looking forward to the future.

After an early surge, Core Lithium is trading grey today at 4.3 cents per share as at 11:45 am AEST.

CXO by the numbers
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