- 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.