Core Lithium raises $40 million following strong support from global institutions
The Finniss Project has been substantially de-risked with funding through to construction, anticipated to start prior to year-end, subject to the final investment decision (FID).
Shares have been placed to a select group of high-quality global institutional investors, primarily in North America, Europe and Australia
Core Lithium Ltd (ASX:CXO) has raised $40 million to advance the development of the Finniss Lithium Project in a placement to global institutional investors.
Demand for the placement well exceeded the shares to be issued to a select group of new high-quality institutional investors, primarily located in North America, Europe, and Australia, aligned with the Core’s vision of soon becoming Australia’s next lithium producer.
Funds raised from the placement will be used to support:
- The efficient advancement of the 100% owned Finniss Lithium Project towards development and a potential Final Investment Decision (FID);
- Resource growth drilling aiming to increase mine life to support expanded and extended Project revenues; and
- Working capital requirements.
Managing director Stephen Biggins said: “This has transferred directly into institutional demand for the placement, which was very well supported, and Core welcomes the addition of some of the world’s most respected funds as shareholders.
“Since the end of 2020, the global lithium and greater renewable technology sectors have shown stark improvements and we continue to monitor these industry changes closely, with a view to making key decisions for Finniss at the right time.
“Core welcomes new shareholders to the business and we strongly appreciate the continued support of our existing shareholders as we aim to join the ranks of Australia’s lithium producers.”
The placement issue price of 25 cents per share equates to a 4% premium to the company’s 20-day VWAP of 24 cents per share to January 29.
Allotment of the placement shares and options is expected to occur on February 12 2021. The Placement was completed within Core’s placement capacity under ASX Listing Rules 7.1.
Jett Capital Advisors, Bell Potter and Taylor Collison acted as joint lead managers whilst Petra Capital acted as co-broker to the placement.