Total
0
Shares
Image Sourced ShutterStock
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Core Lithium will be sharing 2.5 per cent of royalties from its Finnis Lithium Project in the NT after an $8.125 million investment from Canadian company Lithium Royalty Corporation
  • Finnis is the company’s flagship project that recently underwent a definitive feasibility study
  • Full exercising of the interest buy-in is conditional to performance by Core in the near future

Explorers Core Lithium received today an $8.125 million royalty investment for its Northern Territory operations at the Finnis Lithium Project.

The investment, valued at 2.5 per cent of gross revenue through Core’s wholly owned subsidiaries, was bought by Canadian company Lithium Royalty Corporation (LRC).

Notably, LRC has also invested in big hitters Galaxy Resource’s Mt Cattlin Lithium Mine. Core won’t be taking LRC’s money to the bank though, instead the company is pledging the investment to further developing the project’s rate of output.

“We are delighted to have the support of Lithium Royalty Corporation in the form of a Royalty arrangement which contributes toward the Company’s plans to transition from developer to miner,” Core Lithium Managing Director, Stephen Biggins said.

Specific plans fo the company’s flagship has been revealed. These include expanding lithium resources, reserves and the mine’s life, and achieving full approval for plant construction from the Northern Territory Government.

Core is also currently seeking offtake agreements for the project.

A total of $6.875 million of the major deal will be paid upon execution. The additional $1.25 million is pending under Core announcing a 15 million tonne mineral resource estimate at Finnis and achieving operations at a minimum of 14 consecutive days.

Accordingly, LRC’s earned royalties will be set to 2.115 per cent upon execution of the deal and increased to 2.50 per cent after satisfaction standards are met.

Recently, Core completed a definitive feasibility study at the Finnis development.

“The recently completed [study] details the profitability and rapid payback of the near development ready, Finniss Lithium Project, which we expect to generate attractive returns for our shareholders,” Stephen said.

Share prices in CXO have dipped 10.4 per cent today however, marking a price of 4.3 cents per share. The company’s market cap is currently $33.33 million.

CXO by the numbers
More From The Market Herald

" Brookside Energy (ASX:BRK) gears up to drill Rangers Well

Brookside Energy (BRK) is preparing to drill its second well in the SWISH Area of Interest in the Andarko Basin, Oklahoma.

" Sparc Technologies (ASX:SPN) and University of Adelaide to form hydrogen JV

Sparc Technologies (SPN) and the University of Adelaide (UoA) are set to form a joint venture hydrogen technology company.
Triangle Energy (ASX:TEG) - Managing Director, Robert Towner

" Triangle Energy (ASX:TEG) and Pilot Energy (ASX:PGY) complete Cliff Head crude oil lifting

Triangle Energy and (TEG) and Pilot Energy (PGY) say the Cliff Head Joint Venture (CHJV) has lifted 107,000 barrels (bbls) of Cliff Head
Armour Energy (ASX:AJQ) - CEO, Brad Lingo

" Armour Energy (ASX:AJQ) appoints lead manager for McArthur IPO

Armour Energy (AJQ) has appointed a lead manager for the initial public offering and proposed listing on the ASX of McArthur Oil &