Total
0
Shares
- Northern Territory Chief Minister, Michael Gunner - The Market Herald
Northern Territory Chief Minister, Michael Gunner
Source: The Australian
  • Core Lithium (CXO) has received a $5 million concessional finance facility from the Northern Territory Government Local Jobs Fund
  • The funding will go towards developing the Finniss Lithium Project
  • Northern Territory, Chief Minister, Michael Gunner claims the investment will boost more jobs and help the territory's economy grow after COVID-19
  • Before the financing can be finalised, Core Lithium will need to secure binding offtake agreements for at least 50 per cent of production
  • So far, it has agreements in place with China-based Yahua and Geneva-based Transamine Trading - when combined, these represent roughly 70 per cent of project offtake
  • Company shares are up a slight 2.27 per cent and are trading for 4.5 cents

Core Lithium (CXO) has received a $5 million concessional finance facility from the Northern Territory Government Local Jobs Fund.

The finance facility will be put towards the Finniss Lithium Project and has a three-year tenor.

Specifically, the money will contribute to the project's lower start-up capital funding needs and the concessional interest rate is expected to reduce the overall cost of the finance.

The Local Jobs Fund is a Northern Territory Government initiative that's aimed at creating more local jobs, accelerating significant projects and supporting high-growth businesses.

"To ensure the Territory rebounds strongly from COVID-19, the Northern Territory government is investing in projects that will help our economy grow and create jobs for Territorians," Northern Territory, Chief Minister, Michael Gunner said.

The Finniss Lithium Project is a high-value global lithium project. It has a mineral resource of 9.63 million tonnes at 1.4 per cent lithium oxide.

On June 30, the company announced Finniss' ore reserves increased by 159 per cent to 5.7 million tonnes. This supports a seven-year mine life.

"The Northern Territory Government’s proposed financial commitment is a recognition of the value of the near development-ready Finniss Lithium Project and its contribution to reducing global emissions and rebound in economic growth in the Territory," Core Managing Director Stephen Biggins said.

Core will work with the Local Jobs Fund investment committee to finalise documents and satisfy customary conditions.

The finance facility is subject to Core securing binding offtake agreements for at least 50 per cent of production, evidence of the balance of secured funding and an announcement regarding a final investment decision.

Core is continuing to engage with debt and equity capital markets to finalise the balance of the project capital funding requirements.

So far, the lithium producer has a binding agreement with China-based Yahua, for 75,000 tonnes per annum. It also has a non-binding memorandum of understanding with Geneva-based Transamine Trading for a further 50,000 tonnes per annum. In total, this represents approximately 70 per cent of project offtake.

Company shares are up a slight 2.27 per cent and are trading for 4.5 cents each at 12:36 pm AEST.


Subscribe


CXO by the numbers
More From The Market Herald
Clean TeQ (ASX:CLQ) - Managing Director & CEO, Sam Riggall (centre) - The Market Herald

" Clean Teq (ASX:CLQ) completes Sunrise Project Execution Plan

Metals recovery and water treatment specialist Clean TeQ (CLQ) has completed its Sunrise project execution plan (PEP), which updates its previous 2018 definitive
Piedmont Lithium (ASX:PLL) - Managing Director & CEO, Keith D Phillips - The Market Herald

" Piedmont Lithium (ASX:PLL) shares soar after Tesla sales agreement

Emerging lithium company Piedmont Lithium (PLL) has been boosted via the announcement of a sales agreement with electric vehicle manufacturer Tesla.
EcoGraf (ASX:EGR) - Managing Director Andrew Spinks (middle) - The Market Herald

" EcoGraf (ASX:EGR) secures WA industrial site for maiden facility

Eco-friendly graphite company EcoGraf (EGR) has signed an agreement with the WA Government to lease an industrial site south of Perth.
Vital Metals (ASX:VML) - Managing Director, Geoff Atkins, left, and Avalon Minerals CEO, Don Bubar, right - The Market Herald

" Vital Metals (ASX:VML) to raise $8M to progress operations

Vital Metals (VML) has received firm commitments to undertake an $8 million share placement.